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Posted by Matt Osborn - 28 June, 2019

How white label credit cards can boost your revenues

Every business owner knows that a loyal repeat customer is more valuable than a new one. Not only are they likely to spend more, but it’s cheaper to maintain a relationship with a customer than to go out and find a new one. Building customer loyalty has been a huge focus of every business I’ve worked with, and lately, businesses have been taking advantage of new financing technologies to increase customer loyalty and boost their sales. 

Have you noticed as you’ve been out shopping just how often you’re pitched a store’s credit card? At some point it has just become noise, it happens so often. Did you happen to notice just  how hard they tried to get you to sign up? How many times they offered incentives and signup bonuses? 

There’s a reason these businesses are trying so hard to get you to sign up. When you sign up for a private label, or white label credit card, you’re much more likely to continue spending your money at their store. 

As you’ve seen these stores pitching their private label credit cards, have you wondered if your small business should offer their own credit card? Or if you offer something similar, like a credit card payment portal, or even a white labeled line of credit? You’d be surprised at just how many options, and at times, just how simple offering white label financing can be. With today’s technology, building a customer financing portal, or providing some form of branded credit to your customers has never been easier. 

In this article, we’re going to cover why you should consider white label financing for you company, as well as answer the most frequently asked questions about white label financing.  

The Power of White Label Solutions

“White label” is the term given to products that are created by someone else, but have your branding on them. When you white label something like a credit card, your logo, your design, and your information is on that card. For all intents and purposes, the customer thinks you are the one who created the card. 

Through the power of white label products, small businesses are able to offer products and services that they would not normally have the resources to support. 

 

Building Your Brand With White Label Credit Cards

Imagine you own a small construction company, and you’re looking for a supplier for your building materials. You walk into two supply companies, let’s call them Building Supply Co, and Home Builders, Inc. Let’s imagine they’re identical except for the fact that Building Supply Co has a credit card or line of credit available for you to apply for, and Home Builders, Inc. does not. 

White label credit card processing

Which of the store seems like it’s going to have the most support for you? Which company seems like more of an institution?

It’s important to note that when you start using some form of white label credit processing, you want to make sure and keep your brand consistent. Some companies offer in-house design to help you with any materials that comes with their product, but you should be cautions and make sure everything is on brand with your company. 

Also, you want to make sure you select a proper financing company. Make sure they provide guided setup so you’re PCI compliant. Just like any other business partnership, make sure you do your research, get testimonials and read contracts closely. Ask them if they have API documentation to see what part of your digital stack their solution will interact with.

There are a lot of great options for white label financing out there, and a lot of them can seamlessly integrate into your payment flow. Having some form of white label financing will boost your company’s brand in your customers eyes. 

 

Consider a White Label Credit Card Processing Portal To Increase Customer Loyalty (And Learn More About Them)

While offering a store credit card can be helpful, a lot of businesses have found success using a white label credit card processing portal. A good example of this is pizza places that offer online ordering. Once a customer has ordered through your custom portal, you can save their payment information and tie it to their preferences for easy repeat orders. This makes it much more likely for customers to come back and use your website to order. 

Offering Financing Boosts Sales

If you sell expensive products, or own a company that is primarily B2B, offering financing is a great way to increase your sales. When you offer financing to your customers, customers who may not have the cash in hand can then purchase your product. If you extend credit to credit-worthy customers, they are much more likely to purchase from you. For some businesses, especially if you’re B2B, this doesn’t have to be a credit card. Companies like Apruve provide powerful platforms that allow you to extend financing to your customers. 

Customers can be finicky, and maintaining good customer loyalty can be difficult. However, offering a strong financing option, branded around your company, can help your company build the customer loyalty it needs to grow to the next level. 

FAQ

What is a white label credit card?

A white label credit card, often called a private label credit card, is a credit card that is offered through your store. It’s usually branded with your company’s logo and design. While there are a lot of different options out there, these usually are backed by a finance company, who handle most of the processing. 

What is white label credit card processing?

White label credit card processing typically refers to a custom payment portal. These allow companies to create a unified brand experience, linking customer behavior with payment information. 

What is white label financing?

Similar to white label credit cards, white label financing allows you to extend credit to credit-worthy clients or customers. This offered by credit management and automation platforms like Apruve. These companies offer everything from analyzing your customers credit for credit-worthiness to receiving payments. They’re a great way for B2B companies to build loyalty with their customers. 

What about mobile payments?

Mobile payments have come to the forefront of financing technology lately. When you’re analyzing credit solutions, especially white label credit card processing, see if they offer support for Google Pay, Apple Pay and Samsung Pay.

DSO average customer payemtn

How do I decide which white label financing solution is right for me?

You should always do a lot of research before starting with a white label financing solution. Some questions to consider while doing your research:

  • How does this financing solution interface with my current workflow?
  • What would I have to change to implement this? How much would that cost?
  • Are my customers interested in this kind of financing? 
  • How much will this white label financing solution cost up front?
  • How much will this cost monthly, quarterly or yearly?
  • How many resources do I need to dedicate to maintaining this solution?
  • Do they offer installation support, if so, how much does it cost?
  • Do they offer ongoing support, if so, how much does it cost? 
  • Does this companies practices align with my companies practices?
  • Is there anyone I can contact who has done business with this provider?

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Topics: Finance, B2B Sales