Departmental stores and brand shopping stores often ask customers to use their label cards and register to get one. Every time a customer checkouts, they are asked to sign up for a brand credit card. So what actually is this loyalty brand credit card?
A private label credit card is issued by departmental stores or brands to their frequent customers and those who satisfy the minimum value purchase to be eligible for a loyalty membership. Similar benefits are offered by airline companies to frequent fliers. With the access to loyalty membership, a customer can avail exclusive discounts and member only offers that serve the best deals.
There are reasons that make these brands label credit cards beneficial for businesses and help generate better sales.
Enhanced customer engagement and satisfaction
The private label credit cards induce a sense of trust and loyalty from the customer and they feel pampered in every way. This exclusivity and customer attention helps retain the same and pave way for extended brand loyalty. These credit cards come with special offers for the members and serve to be a viable link between the brands and customers.
Apart from these offers and discount benefits, the private label credit cards make transactions effortless and secure. A customer can increment a certain sum in the card wallet and debit the same during shopping for use as a debit card. These cards can be linked to the customer’s bank account and serve to be fully fledged credit or debit cards but exclusive to the specific brand.
Very little credit card processing fee
As compared to standard credit cards that are charged for vast fees to be processed by credit card processing companies, a brand label credit card is charged very less. As compared to an average 3-4% of transaction processing fees charged for bank issued credit cards, a private label card can be charged as less as 0.5% processing fees thus making it the most cost effective cashless payment acceptance method for merchants.
Thus branded credit cards are a viable means to gain the two most significant business benefits, which are customer loyalty and cost-effective payment acceptance. A higher customer loyalty enhances retention and thus an increment in sales while the cost reduction helps prevent unnecessary expenditures. For any business to select the best merchant credit card processing company, Cube Reviews offers a comparison of the top choices and makes the search easy.