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April 14, 2023

5 Tips for Starting a Private Label Credit Card

two merchants starting a private label credit card

Private label credits cards are a valuable—and often underutilized—option for both retailers and customers alike. From offering customers bonuses and perks to increasing customer lifetime value, private-label credit cards deliver a wide spectrum of benefits that make them a no-brainer for e-commerce businesses.

If you’re interested in starting a private label credit card for your brand, read on to learn a bit more about the process as well as a few tips and tricks to make it even easier.

What is a Private-label Credit Card?

A private-label credit card, also known as a closed-loop credit card, is a card issued directly from a specific retailer. Unlike general-purpose credit cards that can be used wherever credit cards are accepted, private label cards can only be used when purchasing items or services from that particular retailer.

What are the Benefits of a Private-label Credit Card?

Private-label credit cards have perks for both customers and retailers alike. For consumers, private label cards allow them to quickly accrue points and perks to save money in the long run. They also often offer other perks, like extended return times or free shipping. For retailers, these types of cards can help increase customer loyalty and retention, leading to increased customer lifetime value. They also help retailers avoid the high credit card payment processing fees that are often associated with general-purpose credit cards.

How to Start a Private-label Credit Card

It may seem daunting for brands to start a private-label credit card, but the process can be surprisingly straightforward when you follow the below steps.

  1. Choose the Right Platform Partner

Choosing the right partner for your private label credit card is integral to long-term success. Platforms like Tandym are designed to make it easy for brands to offer customers a credit card with little to no hassle or set-up. Tandym, for example, utilizes a no-code solution that integrates within minutes and allows merchants to launch their cards within days, making it fast and seamless for not only retailers but also customers.

  1. Connect Your Card Platform & Website

Creating a link between your card platform and your website is the first step to ensuring a seamless payment experience for customers. Tandym offers retailers an app that easily integrates into all major eCommerce platforms. Whether you’re using Shopify, Woo Commerce, Big Commerce , or even custom platforms, Tandym syncs with your backend almost instantly so you’re up and running in no time.

  1. Adjust Loyalty Points & Rewards

One of the biggest private-label card perks for customers is the loyalty program. After starting a private-label credit card, establish the components of your loyalty program, such as promo boosts or new account bonuses. Determine how many points customers accrue, create different tiers and build out the entire loyalty ecosystem. If you’re not sure where to start, Tandym has industry experts with decades of experience managing loyalty programs, allowing you to leverage their knowledge to create a best-in-class offering from day one.

  1. Create VIP Campaigns

After you’ve established your overall loyalty program, consider creating VIP-specific campaigns. By rewarding your most loyal customers with exclusive offers, you’ll help keep them coming back for more. Whether you offer them extra points, exclusive discounts, or freebies with purchase, these campaigns offer them an enticing way for you to repay their loyalty.  

  1. Boost Specific Products

In addition to offering extra bonuses for specific customers, you can also offer bonuses for certain products. Tandym makes it possible to supercharge individual products, allowing customers to bank additional bonuses for purchasing. This not only allows you to more easily clear inventory, but it also plays into customer psychology by giving your customers the satisfaction of scoring an amazing deal.

Starting a Private-label Credit Card With Tandym

Following these steps when starting your private label credit card will not only help your customers get the most out of their card but also set your business up for long-term success. Happy customers lead to increased lifetime value, improved customer loyalty and increased brand awareness, making private-label cards a smart move for retailers looking to foster stronger connections with their target audience.

Designed to save retailers on sky-high credit card processing fees, Tandym helps you drive loyalty while making a major positive impact on your bottom line. Request a demo today to get started.


Forbes - Credit Card Processing Fees (2023 Guide)

BrandLock - Customer Psychology in Ecommerce: Discounts