A co-branded card is a special banking product issued with a partner company. When using this card, a bank customer can receive significant discounts and bonuses on payment for goods and services under certain conditions.
The goal of co-branding for the bank and its partners is to increase customer loyalty. In other words, what is good for a credit institution is also good for a company that shares its brand and vice versa.
By using a co-branding card, you can accumulate bonus points (“miles” in the case of airlines), which you then exchange for goods or services. So, it is a good chance of getting a big discount or a completely free service.
In fact, these cards can be both debit and credit as usual ones.
The main difference consists of the presence of two logos, the bank logo and the logo of the company in cooperation with which the card was issued.
There are several main types of co-branding cards:
- The classic co-branding card is the most common type of co-branding card.
The cardholder performs transactions on the card in the same way as with a regular plastic card, but at the same time, he is able to accumulate bonus points on his account using the loyalty program. The partners of the bank are companies that implement their loyalty programs and have extensive databases, retail chains, and mobile operators.
- Co-branded card created in collaboration with the airline company
The more a person spends on the purchase of tickets, the more points he gets. In the future, they can be exchanged, for example, for getting a free flight. Or, you could raise the class of service by paying for the economy class and be in business class in the future.
- Co-branded card created in collaboration with a fuel company
If you drive a lot and like to economize, then it makes sense to turn your attention to the card created in conjunction with the fuel company. This provides you additional bonuses, which can then be exchanged. The only problem is that you only have to use one company.
- Co-branded card created in collaboration with a mobile operator
If you use such a card, then you will earn points which can be spent on various services provided by your mobile operator. As a rule, these are various packages of free minutes, megabytes of Internet traffic, etc.
- Multi-brand cards
And then there are the so-called multi-brand cards, which are issued by the bank in cooperation with several firms. For example, there is a program specifically for girls who can receive points, bonuses and discounts, paying for the card in beauty salons, perfume departments and even restaurants. Most often, such programs allow you to get a good discount when you pay for any product or service.
- Affinity cards
This group includes cards designed for a specific target audience. Such cards enable its holder to transfer a percentage of the amount spent on the card to a charitable foundation. At the same time, the contribution to the benefit of the charitable organization is made by the issuing bank.