Private Label Credit Cards Defy Doomsayers

Over the last few years, it seemed like every retailer was leaving the private label credit card space, or at least considering it. Yet today we see new headlines announcing private label deals by the dozen, American Banker reported. “Clearly, the doomsayers were missing something. Understanding the reasons why they were so wrong can be instructive for understanding other hype cycles that affect this business,” the site added.

Private label cards are the least expensive method of payment stores can accept; they impact loyalty; and consumers are likely to pay store-branded cards back in a financial pinch.

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