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Q: Co-Branded Cash Card ( Answered 5 out of 5 stars,   0 Comments )
Subject: Co-Branded Cash Card
Category: Business and Money > Consulting
Asked by: lizardnation-ga
List Price: $15.00
Posted: 18 Dec 2002 14:33 PST
Expires: 17 Jan 2003 14:33 PST
Question ID: 126634

We're looking for a company which would create Cash Cards cobranded
with our brand, either MasterCard or VISA, with the ability to gain
from the transaction that go through them by our customers whom apply
for them.

If you would be able to make us more aware of the market and what's
out there as this is an area we know nothing about.

Thank you.


Clarification of Question by lizardnation-ga on 18 Dec 2002 14:37 PST
Forgot another elements to the services which we're interested in.

Virtual cards.  I undersntad that Amex offer these cards on the fly
from their web site to Amex holders where a card of any value can be
generated for a one time use.  These virtual cards hold only the
amount you put into them online and stop existing once used. If
unused, you can retain their value into your main card or merge cards.
 We're also looking for something similar if possible.

Thank you.
Subject: Re: Co-Branded Cash Card
Answered By: lot-ga on 18 Dec 2002 17:50 PST
Rated:5 out of 5 stars
Hello lizardnation-ga

Wow, you are active in your e -activities, going deep and wide!

Mastercard's own co-brand guide is a very good resource:
(requires Adobe Acrobat Reader to read the PDF) 
- right click and save to disk as it is quite a large file and may
take some time to appear in your browser. If you don't have the Reader
you can download it from the Adobe site for free:

Basically co-brand involves three parties, Mastercard, the bank/issuer
and the partner.
Mastercard state they have 68.2% of the co-brand market and Visa
31.8%. They also claimed to have pioneered it.
The MasterCard Co-brand Helpline is: (914) 249-3258 to talk to a

They point out co-brand partner benefits as being:
- Increased brand awareness
- Increased customer satisfaction and loyalty
- Enhanced customer knowledge
- Communications opportunities
- Cross-sell opportunities
- Operational efficiencies
- Revenue opportunities
- Expansion of private label cardholder base, with an attractive new
card program
- Value-added benefits
- “Intrinsic” value of partner affiliation
- Greater utility from single card

Mastercard are also keen to point out the main reasons why customers
apply for a co-brand card are:
Reward - 28%
Always shop there - 8%
Pricing - 16%
Overall rating of partner - 29%

The cards they offer are detailed in the below excerpt:
"- MasterCard Standard Card. 
Accepted worldwide cardholders have global cash access at more than
619,000 ATMs in the MasterCard/Maestro/Cirrus ATM Network.
- Gold MasterCard Card. 
Targeted to upscale customers, this program is a proven generator of
higher transaction volume, and in addition to the Standard Card
features, its array of select features and benefits represents added
value for cardholders.
- Platinum MasterCard Card. 
In addition to the Standard Card benefits, this card has a generously
high spending limit comes with a full complement of rewards.
- World MasterCard Card. 
Cardholders enjoy the combined luxury of no pre-set spending limits as
well as the opportunity to earn travel reward points.
- MasterCard DebitCard.
One card for shopping and getting cash. Amount of your purchase is
automatically deducted from your checking account.
- MasterCard SmartCard. 
The card that uses chip technology, which can be customized to include
credit, debit, Mondex electronic cash, loyalty programs, and/or store
- MasterCard Stored Value (Pre-Paid). 
Prepaid cards involve an arrangement between a card issuer and a
consumer or business, where the consumer or business prepays value to
the issuer for access solely or principally by a card (physical or
virtual). Prepaid cards can be single-use or reloadable and are often
a replacement for cash or checks. In addition, prepaid cards can
facilitate the completion of Internet purchase transactions for
consumers who do not have access to debit or credit cards.
- MasterCard BusinessCard Card. 
Designed for small businesses, the first corporate bankcard offers a
superior management tool for employee business expenses.
(Also available, Executive Card and Debit Card.)
- MasterCard Corporate Card. 
Supports internal corporate policy and streamlines expense
reconciliation to help large corporations manage their travel and
entertainment expenses.
- MasterCard Purchasing Card. 
Designed for large companies. Offers the most comprehensive payment
mechanism for managing the small-dollar purchasing process.
- MasterCard Corporate Multi Card. 
A unique, integrated platform for corporate customers that combines
the functionality of one or more of our MasterCard corporate programs
– Travel, Purchasing, or Fleet – into a single card solution for
managing and controlling expenses.
- MasterCard Public Sector Multi Card. 
A single integrated platform to drive efficiency and streamline a
company’s entire operation, supporting any combination of your Travel,
Purchasing, and Fleet spending programs.
- MasterCard Corporate FleetCard.
Provides Fleet Managers with the opportunity to build customized
programs to monitor and control fleet fuel and maintenance expenses."

Phew! so many.. it's a case of which one do you choose!

Their FAQ contains a resource of information and they even detail how
to find a card issuer (bank):
"Different bankcard issuers will have their own ideas about co-brand
programs. It is best to talk initially to the financial institutions
with which you have existing relationships. It is essential that you
consider the program from their point of view.
...Prior to talking to any card issuer, you should do the following:
- Develop a Request for Proposal (RFP)
- Define data requirements clearly; the project team’s MIS and
marketing representatives should outline their data needs
- Investigate marketing funding levels, research how similar
businesses fund their co-brand card programs and determine how much
marketing support a potential issuer is willing to offer
Initial issues that you may wish to discuss with a prospective issuer
could include:
- Annual fee
- Interest rate
- Qualifications for the card
- Rebates/discounts
- Term of the program agreement with the issuer
- Liability coverage, etc."

There are a few 'case studies' of co-branded cards at towards the end
of the PDF document describing for example, the Barnes&Noble, Shell,
and National Geographic offerings.

At the end of the document there are technical details, guidelines,
rules and regulation requirements regarding the co-branding issue.

The Visa co-brand solution is here on the Visa site

Their reasons for co-branding are:
"- Build incremental sales through customers who may delay purchases
or buy competitive products.
- Strengthen customer loyalty by offering a value-added incentive to
buy your company's product or service.
- Increase brand awareness with value-added benefits that encourage
customers to use your co-branded card more often.
- Enhance your corporate image every time your card is used. 
- Identify and market to your customers. Use the buying behavior of
your customers to target new products and services and to deliver
more-effective sales promotions.
- Communicate with your customers through monthly statements. 
- Save money compared to issuing your own credit card. You don't pay
costs for processing payments and extending credit.
- Develop a new revenue stream through income generated by the
cardholder portfolio.
- Build a valuable banking relationship with the financial institution
that issues your card."

Visa's "Getting Started" guide is good reading:

and so is their "Create Your Card" section showing possiblities for
the card:

Co-brand consultants:

Card acquirers / banks to partner with

You are also looking for virtual cards, which sound like prepaid cards
to me,
i.e. come with a preset amount and are use only once, but you already
asked that question which makes me conclude you are looking for a 'web
A web wallet is a virtual wallet which you can deposit amounts on,
these units get depleted as you use them, but can also be recharged or
refilled unlike prepaid cards. This is a very unstable market, as 2
vendors which we were looking at have already gone under. There seems
to be no real standard yet in this market. There is our system which
we are looking at that generates a unique barcode number (which is
your web wallet) you can either retain the number and use it online,
or print out the barcode to use in the real world at a participating
store and the transaction amount is deducted from when the barcode is

One of the better known electronic cash solutions is Mondex 
is a Mastercard product so has a fair amount of marketing muscle
behind it.
However the card itself is a physical product as you have a smartcard
which is charged up.
( )

I hope that's the sort of solution you are referring to. If not,
please feel free to elaborate on your original description.

Search Strategy:
"turnkey" "white label" OR "co brand" "cobrand" OR "co-brand" "credit

If you need any clarification to any part of the answer, just ask.

Kind regards

lizardnation-ga rated this answer:5 out of 5 stars
Thanks Lot, you always come through. :-)


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