How do co-branded credit cards work?

The bank behind the card, called the issuer, is ultimately responsible for the card. It decides who is approved for the card, the credit limit, and the interest rate. If the customer doesn't pay, the issuer is on the hook for writing off the bad debt. What's in it for the issuer to do co-branding? read more

Finally, the cobrand usually gets an additional merchant fee discount from people using its cards to buy things from them. Credit cards process payments for a fee, paid by the merchant taking payment. But cobranded card agreements are special. read more

When you count the signup bounty, the fee rebate for “on us” spending, and the revenue sharing, the partner’s cost for accepting a co-branded card is negative. It will do all it can to push you to apply for the co-branded card, use the co-branded card at its locations, and use it elsewhere. read more

Such co-branded cards are becoming increasingly popular as both stores and credit card companies seek new ways to appeal to customers. In 2014, payments made with co-branded cards amounted to 31 percent of all credit card purchases in the country. read more