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HomeFinanceWhat is a White Label Credit Card, and How Does it Work?

What is a White Label Credit Card, and How Does it Work?

The primary focus of every person in business is constructing customer loyalty. Because making a loyal customer who will repeatedly buy things from you and maintaining a good relationship with him is better than finding new customers daily.

It's human psychology that people tend to buy things from more familiar stores. For this reason, you will find stores always offering you their credit cards. They will try to convince you to sign up for their white label card or private label card.

But you shouldn't go for their white label credit cards before knowing every important information about it. Don't worry if you have no clue about this because we have got you covered. We will inform you about what is a white-label credit card and how does it work? So, without further ado, let's get started.

What is a White Label Credit Card?

A white label credit card is also referred to as a private label credit card. It's a kind of credit card that stores offer you. It's a branded card containing the particular company's design and logo.

A loyal customer's payment information and behavior are recorded through these cards. Different finance companies handle most processing of the card.

How Does a White Label Credit Card Work?

A white label credit card works simply. It partners with a financial institution (third-party) that will manage all the card programs for a business. These third-party institutions perform many functions. These partners include the card's issuance, credit funding, and collecting payments from the consumers.

The credit card's basis is established by both the retailer and the financial institution. However, it's the financial institution that is responsible for processing card issuance and underwriting. There are similarities between general credit cards.

For example, white-label credit cards, that is when a customer has a balance on the card, he will be charged interest. Plus, if you pay late, you will be charged a fee, and you will be given a grace period while you don't have a balance, but you have paid all your earlier bills on time.

Another similarity between the white label credit cards and general credit cards is that when the white label credit card does not bear the remittance network's logo, a payment processor will always have its back and issue bank.

The payment procedure is so simple that it inspires the stores to offer it to their buyers. White label or private label cards work great with the existing point of sale equipment and terminals.


What is White Label Financing?

White label financing works like white-label credit cards by letting you expand credit to credit-worthy customers. Automation and credit management platforms such as Apruve offer such a payment system.

These companies first analyze to know if the consumer is worthy of the credit, receiving payments, and then offer everything they need to encourage them to buy more from you. B2B companies can easily build loyal buyers through this gateway.

What is White Label Credit Card Processing?

White label credit card processing is a custom-built typical payment portal. With the help of such payment portals, companies can unite brand experience, connecting the behavior of consumers with their payment information.

What is White Label Card Issuing?

White label card issuing means a store brand card that you can specifically use at a particular retailer exclusively.

What is White Label Payment Gateway?

A white label payment gateway means a payment company will process payments utilizing a third-party gateway supplier by integrating the company's logo with a payment mainframe to make a personalized solution.

What is an example of a White Label Credit Card?

A white label credit card is a brand's credit card specifically used with that particular brand or retailer. Some white label card issuers are Comenity Bank, Citi, and Synchrony. These cards help to create loyal consumers and boost sales.

Closing Remarks

We hope now you have a clear concept of a white-label credit card and how it works. This card is truly useful when it's about building a good relationship between the seller and buyer.

Besides, it eases the payment method to help a customer shop with no worries. It's a great way of building trust and dependency among the customers and the sellers.

Syandita Malakar
Syandita Malakar
Hi guys this is Syandita. I started Business Module Hub to help you all to post updated articles on technologies, gadgets. Although I love to write about travel, food, fashion and so on. I quite love reading the articles of Business Module Hub it always update me about the new technologies and the inventions. Hope you will find Business Module Hub interesting in various way and help you accordingly. Keep blogging and stay connected....!
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