How Do Co-Branded Credit Cards Work?

By | December 3, 2021

When you’re looking for a new credit card, you might come across Co-Branded Credit Cards. But what are they, and how do they work? In this post, we’ll break down everything you need to know about co-branded credit cards.

We’ll cover the benefits of these cards, and we’ll also look at some of the drawbacks that you should be aware of before applying. By the end of this post, you’ll have a good understanding of whether or not a co-branded card is right for you. So let’s get started!


What’s Ahead

  1. What are co branded credit cards?
  2. How Do Co Branded Credit Cards Work?
  3. How do banks make money on-co branded credit cards?
  4. What are some things to consider before getting a-Co branded credit card?
  5. Best Co branded credit cards in India 2021

How Do Co-Branded Credit Cards Work
How Do Co-Branded Credit Cards Work

What are co-branded credit cards?

Co-branded credit cards are a type of card that is issued by one bank but can be used at multiple stores. The store or brand name appears on the front of the card, and it’s typically accepted at all locations within that brand.

For example, if you have an Amazon Prime Credit Card from ICICI Bank, you’ll get 5% back when shopping at Amazon.com. You can also use your card to pay for purchases made through Amazon.com, even if Amazon itself does not fulfill them.

Some co-branded cards might offer additional benefits like free shipping or discounts on certain items purchased with the card. And some might give you access to special events held by the partner company as well! So there are many great reasons why people choose these types of cards over others… But what about some downsides? Let’s take a look now!

There are some drawbacks to using a co-branded credit card, too, especially if you don’t shop frequently enough with anyone store to justify getting their branded version instead of another type of rewards credit card entirely!

One drawback is that many co-branding programs only allow customers who live in specific states or regions to apply for their branded version – so this means that residents outside those areas won’t be able to get them unless they travel often enough into those areas.

How Do Co-Branded Credit Cards Work?

Co-branded credit cards are a partnership between two companies, where the co-branding company gets their name on the card and typically provides some incentive for using the card. Co-branded credit cards can be used anywhere that accepts Visa or Mastercard.

The co-branding company usually has a deal with the credit card issuer to provide a certain number of cards, and in return, the co-branding company gets a cut of each purchase made with the card. Co-branded credit cards can be used to promote the co-branding company’s products or services, or they can be a way to get access to better terms on credit card purchases.

How do banks make money on co-branded credit cards?

When a customer signs up for a co-branded credit card, the bank and the retailer partner to offer a special card used at both stores, in most cases, the bank will issue the credit card and manage all of the billing and payments for the account, while the retailer will provide promotional discounts and rewards for customers who use the card.

The bank makes money by charging interest on any balance carried from month to month and other fees like late payments and cash advances taken out against the credit limit.

The retailer partner could also profit from every transaction made with the co-branded card at their store. Co-branded cards are an excellent way for banks to attract new customers, and they can be a great way for retailers to increase loyalty among their existing customer base.

What are some things to consider before getting a Co-branded credit card?

Co-branded credit cards can be a great way to earn discounts and rewards, but you should ensure that the card offers what you need before applying for one. Co-branded cards usually require an excellent credit score to qualify, so it might not be worth trying for this type of account if your FICO score ( CIBIL Score In India) is low.

Another thing to keep in mind is that the interest rates for co-branded cards are often higher than those on regular credit cards, so you need to be sure that you can afford to pay off your balance each month. Co-branded cards also typically come with annual fees, so make sure that the rewards and discounts offered by the card are worth more than the cost of the annual fee.

If you’re looking for a credit card that offers great rewards and can be used at a variety of stores, then a co-branded credit card might be the right choice for you. Just make sure to do your research before applying to know what to expect.

Here is the list of things to consider before getting a Co-branded credit card?

  • Co-branded credit cards usually require an excellent credit score to qualify.
  • Co-branded cards typically come with annual fees, so make sure that the rewards and discounts offered by the card are worth more than the cost of the annual fee.
  • It might not be worth trying for this type of account if your FICO score is low.
  • The interest rates for co-branded cards are often higher than regular credit cards.
  • Be sure that you can afford to pay off your balance each month.
  • Co-branded cards offer great rewards and can be used at various stores.
  • Do your research before applying!

Advantages of Co-branded credit card

Here are the 10 Advantages of Co-branded credit card

  1. Co-branded credit cards offer great rewards and can be used at various stores.
  2. Co-Branded Credit Card: The best way to earn discounts and rewards!
  3. Co-branding your card with the top retailers is an excellent way to attract new customers.
  4. Co-Branded Credit Cards are the best for any customer looking to maximize their savings.
  5. Co-Branded Credit Cards are a great way for banks to attract new customers, and they can be a great way for retailers to increase loyalty among their existing customer base.
  6. Co-branded cards come with annual fees that often allow you access to exclusive promotional offers from the retailer.
  7. Co-branded credit cards are particularly useful when traveling abroad, as they offer access to foreign currency ATMs without charging the usual fees.
  8. Co-branded credit cards are a great way to improve your credit score because they demonstrate responsible borrowing behavior.
  9. Co-Branded Credit Cards can be used at various stores, which means that you’re not limited to one type of purchase.
  10. Co-branded credit cards offer various rewards programs that can be tailored to your specific needs.

Dis-Advantages of Co-branded credit card

9 Disadvantages of Co-branded Credit Cards

  1. Co-branded cards can be difficult to qualify for if you have a low credit score.
  2. Co-branded cards usually come with high-interest rates, so you need to be careful not to get into debt.
  3. Co-branded cards typically have annual fees, so make sure that the rewards and discounts offered by the card are worth more than the cost of the annual fee.
  4. Co-branded cards are not always accepted at every store.
  5. Co-branded cards may not offer the same rewards or discounts as other credit cards.
  6. Co-branded cards may not be accepted in foreign countries.
  7. Co-branded credit cards can limit your purchasing power if you don’t have a high enough credit score.
  8. Co-branded cards often come with more restrictions than regular credit cards.
  9. Co-branded cards can be difficult to understand and navigate the rewards system.

Best Co-branded credit cards in India 2021

Here are the Co-branded credit cards that might be worth looking into:

Amazon Pay ICICI Credit Card

Amazon Pay, ICICI Bank credit, is a Co-branded credit card that offers great rewards on Amazon purchases and other benefits such as fuel surcharge waivers and discounts at partner restaurants.

The card also comes with many features that make it attractive to users, including an easy online application process, no annual fees, and free add-on cards for family members.

This Credit offers 5% cashback on Amazon Shopping if you are on Prime Membership and 3% cashback if you are not on Prime.

The card also offers many other rewards and discounts at partner restaurants, movie theaters, and more.

Here, you can read the detailed review about Amazon Pay ICICI Bank credit cards.

Axis Bank ACE Credit Card

Axis bank’s Co-branded credit card is a great option for everyone because it offers.

  • Unlimited 5% cashback on bill payments, DTH, and mobile recharge through Google Pay
  • 4% cashback on Swiggy, Zomato & Ola
  • 2% cashback on other spends
  • No upper limit or maximum cashback earned
  • 4 Complimentary domestic lounges access per year ( One Per Quarter)

It also comes with a very low Annual fee ( Rs.499) fees, making it an excellent choice for beginner-level credit cardholders.

You can read the detailed review about Axis Bank Co-branded credit cards here.

Flipkart Axis Bank Credit Card

Flipkart Axis Bank Co-branded credit card is a great option for users who frequently shop on Flipkart and wish to earn cashback rewards.

The card offers up to 5% cashback as discount coupons from various brands such as MakeMyTrip, Uber, Myntra, etc.

In addition to this, it also offers Complimentary lounge access with Priority Pass membership. You can read the detailed review about these Flipkart Co-branded credit cards here.

I hope you found this article useful and informative. If there are any questions, please feel free to contact us in the comments box.

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Author: Dhiraj Jha

Hi, I am Dhiraj Jha— the founder of a leading personal blog website. I’m an experienced financial expert pursuing my main in personal finance. I have completed my graduation from the Institute of Chartered Accountants of India (ICAI). I always wanted to do something big and better, and today I’m here with my passion for helping people utilize their resources wisely. I love to acquire, review and earn reward points/cashback from credit cards, which help me travel worldwide and stay in luxurious hotels. 

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