Private Label Card

Private or “white” label credit cards are issued by retailers. Unlike co-branded credit cards, which are joint endeavors by the retailer and a card brand (such as Visa) private labels can only be used at the retailer that issued the card. Merchants partner with banks or commercial finance companies to extend credit to their customers.

Private label cards offer many benefits to the retailer. Obtaining one is usually easier for the consumer, as this type of card has terms and requirements less strict than general use cards. By the same token, in-house cards encourage repeat business, especially if the retailer offers perks like special financing and loyalty rewards for shopping at their stores.

Similar to other credit cards, private labels provide a revolving credit line, charging interest for unpaid balances. They still require the services of a payment processor, as well as an issuing bank that is responsible for the underwriting, issuing cards, and collecting payments.