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January 17, 2023

5 Advantages of Merchant-Branded Credit Cards for Businesses

A customer using a merchant branded credit card

For businesses seeking to increase revenue and simultaneously improve their customer loyalty, merchant-branded credit cards offer a seamless and reliable solution. Also known as a private label card, a store-branded credit card is designed for use at a designated brand and creates a credit line for customers specific to that retailer.  

Find out how branded credit cards can boost your bottom line and help you reward your best customers.

What are Branded Credit Cards?  

A private label or store card refers to a credit card that can only be used with a specific retailer or brand. Merchants offering branded credit cards connect their payment directly to a bank, circumventing typical processing costs and procedures and ultimately increasing their savings. 

A co-branded credit card works with traditional networks (typically Visa or Mastercard) and can be used anywhere. Historically, banks enabled only the largest retailers to offer branded credit cards.

In either case, customers receive exclusive perks and rewards when purchasing using private label or co-brand credit cards. 

Below are five major advantages of merchant-branded credit cards.

1. Increase Brand Loyalty

By rewarding your best customers, you greatly increase their likelihood of shopping with you again.

With branded credit cards, you can offer customers a more personalized and desirable shopping experience and thus encourage them to increase transaction size and frequency at your store. Merchants can also devise unique deals for customers using their store cards. For example, a brand could choose to permit customers to return items purchased with a branded card without a receipt. 

2. Improve an Existing Loyalty Program

How much does your current loyalty program cost you? When you use merchant-branded credit cards, you can use the money you save on payment processing fees to fund valuable customer loyalty programs. 

Loyalty programs fail when they are unable to offer adequate perks or a straightforward payment experience. When customers make purchases with your branded credit card, they efficiently receive rewards or incentives such as “Earn 5 points per dollar spent.” Since customers can use these loyalty points for future discounts, your overall customer retention grows.

3. Grow Your E-commerce Business  

Today, brands of all sizes have the opportunity to offer digital private-label cards through Tandym. By issuing virtual store cards instantaneously to customers, you can hold their attention and encourage them to make more immediate purchases. In addition to providing a digital payment platform, Tandym also serves as a business partner to merchants, offering unique insights so that they can thrive in their particular industries and grow their e-commerce business. 

4. Eliminate Fraud and Credit Risks

E-commerce merchants naturally deal with Card Not Present (CNP) transactions. The standard security measures used for brick-and-mortar purchases, such as obtaining a signature or requestion additional forms of identification, simply don’t exist online.

When a traditional card’s data is stolen, CNP merchants may prove liable for the costs of credit card fraud. In contrast, Tandym takes all credit and fraud risks and funds transactions on the same day.  

5. Save Time and Money

Unlike traditional payment networks, which demand over 3% in processing fees, branded credit cards from Tandym offer fees of 0.5 percent. As a result, merchants can save as much as 80 percent on payment processing fees.

With a branded credit card, your business no longer needs to fund big bank loyalty programs. Instead, you can reduce your costs while celebrating your loyal customers. What’s more, the costs of customer acquisition decline significantly.

Setting up a branded credit card can be a straightforward and seamless process. With Tandym, you can test and launch your card within two to three business days, and it will work alongside your existing payment methods. Integrate our digital store cards via e-commerce plug-ins or our Software Development Kit. Our technical team is always available for support.

Grow Your Business with a Merchant-Branded Credit Card

Tandym is the payment platform designed to put merchants first. We disrupt the status quo when it comes to the private-label credit card and alternate payments industry to favor the merchant. Our comprehensive credit card and alternative payment solutions boost business outcomes for businesses while enhancing the customer experience. 

Want to know how your e-commerce businesses can drive loyalty and increase revenue with a digital store card? Request a demo and find out what a branded store card can do for your bottom line.


Investopedia: Private Label Store Credit Card Defined (investopedia.com)

NerdWallet: Who Pays When Merchants Are Victims of Credit Card Fraud? - NerdWallet