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May 26, 2023

Do White-Label Credit Cards Increase Revenue?

A woman using a white label credit card to make a purchase.

For most businesses, driving revenue is a top priority. But instead of focusing on drastic cost-cutting or throwing funds at customer acquisition, why not think a bit outside the box?

White-label credit cards are an unexpected-yet-effective way for e-commerce brands to positively impact their bottom lines. This creative approach can help lower costs while also driving added profit to drive change across your business.

Below, we break down the top five ways digital private-label cards can affect your brand. 

  1. Lower Costs and Increased Profit

Though branded private-label credit cards may at first seem to only benefit the consumer, they also help businesses lower their expenses and drive revenue in various ways. Branded credit cards don’t only decrease expenses—they also help drive profit to make an even bigger impact on your bottom line. Private-label credit cards can reduce processing fees, lower fraudulent transactions, enhance operational efficiency, and increase data insights to tailor inventory management and pricing strategies.

  1. Decreased Credit Card Fees

Paying by credit card makes life much easier for customers, but it can be a huge added expense for business owners. Most  payment types charge a percentage, usually between 1.5 and 3.5 percent of the transaction. These processing fees quickly add up, amounting to a huge annual expense for businesses. 

Branded credit cards, however, are a more cost-effective option for businesses. These private-label cards, like those offered by Tandym, only have a .5% processing fee, which can save up to 80% per transaction. This dramatically cuts costs and frees up money to be used in other areas, like marketing, operations, or product development. It also drastically lowers a major line item in businesses’ budgets, allowing them to be more profitable overall. 

  1. Decreased Operational Overhead

Modern branded credit cards are often fast and easy for businesses to set up. These low-cost solutions are designed to integrate directly into your existing platforms, so there’s no complicated set-up or tedious back-end engineering. Because it’s designed to plug in directly to your e-commerce platform, Tandym doesn’t require added headcount or an extra team. You can keep your team as lean as you need, allowing you to minimize your operational costs for added profitability.  

  1. Higher Customer Retention & Lifetime Value

Many business owners think that finding new customers is their biggest challenge—when instead, their focus should be on customer retention. Increasing customer retention by 5% alone can increase profits anywhere from 25-95%, making it a smart way to pump up your profits.

Customer lifetime value is a strong indicator of customer loyalty because it measures the total amount spent throughout a customer’s relationship with your business. CLV not only helps drive revenue, but also helps keep customers happy, so it’s a beneficial investment for both sides. 

Branded credit cards are a smart and easy way to increase your customer retention and drive loyalty. By offering extra spending power, points, perks, and special discounts, these programs encourage your customers to come back again and again to make repeat purchases. Over time, this slowly grows their brand loyalty and increases CLV, which can help grow profits year over year.

  1. Higher Average Order Value

Branded credit cards can help incentivize your customers to spend more money not just throughout their lifetime, but also every time they shop. Average order value is an important metric for businesses across industries because it allows you to understand the return on investment of your marketing efforts—but it also is a vital way to help drive revenue. As AOV increases, income also increases, helping to keep your business as profitable as possible. 

Creating a branded credit card for your customers offers added perks—like tiered discounts, free shipping, short-term sales, or discounted bundles—that are a reliable way to ensure they keep clicking “add to cart.” 

Creating a Branded Credit Card

Though it may seem complicated, creating a branded credit card for your business is surprisingly simple with Tandym. This supercharged platform is designed to lower your processing costs and drive loyalty—all at the same time—for a win-win solution. 

Tandym offers both credit and debit payments and account bonuses for your customers, so they’ll always want to shop. For merchants, there’s a host of tools, including a rewards ledger, dynamic on-site messaging, and a merchant dashboard that make the management and maintenance of your platform a breeze. 

Request a demo today to get started. 


Forbes - Credit Card Processing Fees (2023 Guide)

BigCommerce - The 15 Best Ecommerce Platforms to Consider for Your Online Store

Webflow - Shopping cart design best practices