Co-branded Card

Definition

  • The most common type of co-branded credit cards are those issued by banks in partnership with other retail companies. For example, General Motors, Shopper's Drug Mart, and Starbucks all offer co-branded credit cards where their names appear on the card with the name of the issuing bank. Retailers often form these partnerships to attract clients by offering special shopping incentives if you use the card. Many of these cards, especially those affiliated with airlines, charge high annual fees because of their popularity among consumers.

Synonyms
affiliation, affinity card, bank card, company logo

Related Terms and Acronyms

  • Affinity Card Definition,
    • A credit card (usually Visa or MasterCard) that has a promotion arrangement with an affiliated organization (often a charity or non-profit group). The logo of the group appears on the card and the group usually gets a percentage of the sales made on the card.
  • Air Miles Company,
    • One of the most popular rewards issued by airline-affiliated co-branded cards. Air miles are earned with every use of the card, and then transferred monthly to the cardholder's account with that airline.
  • Annual Fee Definition,
    • A bank charge for use of a credit card levied each year, which can range from $15 to $300, billed directly to the customer's monthly statement. Many credit cards come without an annual fee.
  • Cash Cards Definition,
    • Cash cards, similar to pre-paid phone cards, contain a set amount of value, which can be read by a special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The cards are like cash -- they have no built-in security, so if lost or stolen, they can be used by anyone.
  • Classic Card Definition,
    • Brand name for the standard card issued by VISA.
  • Credit Card (CC) Acronym, Very Important,
    • A plastic card with a coded magnetic stripe that, when signed, entitles its bearer to a revolving line of credit, with a credit limit and interest rate determined by the borrower's income and credit report.
    A payment card that gives customers access to a revolving line of credit.
  • Debit Card (DC) Acronym, Important,
    • A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
  • Direct Cheque Printers Definition,
    • These operations offer lower prices and greater selection than chequing customers get through their banks. Many of these printers are also printing cheques for banks that use outside printers. Customers must supply most direct cheque companies with a voided cheque or a reorder form from a current batch of cheques and a deposit slip. Names and addresses must match with information on file at the account holder's bank.
  • Point of Sale (POS) Acronym,
    • An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer's chequing account. Also known as POS.
    • A location where a sales transaction takes place.
  • Rebate Card Definition,
    • This is a credit card that allows the customer to accumulate cash, merchandise or services based on card usage.
  • Standard Card Definition,
    • The basic card offered by issuers. Customers with higher incomes and good credit reports can qualify for the higher-limit gold and platinum cards.
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