Private Label Credit Card

Private label credit cards are cards branded for a specific retailer, independent merchant or manufacturer.  A private label credit card may be issued by a retail outlet, such as a department store or gasoline retailer, and usually contains the logo of that retailer.  It is accepted only by the retailer who issued it.  Retailers partner with a bank or a credit card processing company to back the cards.  If the retailer does not manage the private label card, a third-party issues the credit cards and collects the credit card payments from cardholders.  Retailers prefer to have their own credit card because it offers customers another way to shop with them, further market their brand and increase sales.  The card may be a credit card, debit card or stored value cards that can be used only within a specific merchant’s store.