A new model for co-branded credit cards
A new model for co-branded credit card programmes has been launched as part of a partnership agreement between US-based Boscov's Department Stores and First National Bank Omaha.
Instead of the fee-based incentives model found in most programmes, the partners will split the expenses and revenues of their Visa Card programme.
Ownership changed In late 2000, Boscov's entered into a similar affinity marketing agreement with Main Street Bancorp, which aimed to enhance its existing rewards programme and credit product offerings.
With the acquisition of Main Street Bancorp by Sovereign Bank (an agent bank of First National), First National became the owner and processor of the Boscov's & First National Bank Omaha Visa Card.
First National adapted to Boscov's programme and provided more control than traditional credit card partners would, largely due to its in-house processing facilities and flexible technology.
Minimal customer impact Though the partnership encompasses Boscov's current card members, the firm maintains that the changes they see will be minimal. New co-branded cards from First National will replace previously co-branded cards, and card members with Boscov's proprietary cards will also have the opportunity to switch to the new co-branded Visa Card.
Customers earn two reward points for every US$1 purchased with the card at Boscov's, and one point for every US$1 purchased elsewhere.
New partners sought The programme has also opened new possibilities for other need-centred co-branding relationships. First National hopes to build more revenue-sharing, co-branded models to suit other businesses that don't want the 'one size fits all' partnership arrangements that are otherwise commonplace.
"We're big enough to have the muscle to compete and win, and we're small enough to care and give more attention, effort and service to our strategic partners," explained First National's second vice president, Scott Wagner.