Glossary: Private Label Credit Card

What is private label credit card?

A Private Label Credit Card (PLCC) is a specialized type of credit card issued by retailers and intended exclusively for purchases within a specific brand or store. These cards are designed to foster brand loyalty by offering exclusive benefits, such as special discounts, rewards, or financing options, that are not available with standard credit cards.

Unlike general-purpose credit cards, PLCCs are branded with the retailer’s logo and often offer unique benefits such as special discounts, loyalty rewards, or exclusive access to sales and events. These cards are designed to encourage repeat business and enhance customer loyalty by creating a more personalized shopping experience. Retailers issue these cards in partnership with financial institutions, leveraging them as a strategic tool for driving sales and deepening customer relationships while offering consumers a tailored financing option.

Key features of private label credit card:

  • Brand-centric: PLCCs carry the branding of the issuing merchant, creating a stronger connection between the consumer and the retailer.
  • Exclusive Benefits: These cards often offer exclusive promotions, rewards, or discounts, enhancing the overall shopping experience for the cardholder.
  • Customized financing options: PLCCs can provide special consumer financing terms, like deferred interest or extended payment plans, tailored to the consumer’s needs.

The impact of PLCCs on consumer behavior:

Private Label Credit Cards are more than just a payment method; they are a strategic tool for enhancing customer loyalty and engagement. By offering PLCCs:

  • Customers feel valued: Exclusive benefits make customers feel special, encouraging repeat business.
  • Increased spending: The availability of tailored consumer financing options can lead to higher average order values.
  • Brand loyalty: PLCCs strengthen the relationship between the consumer and the brand, fostering long-term loyalty.