HH Gregg card becoming Synchrony Home

[Anonymous]

We have gotten an email from Synchrony pertaining to our HH Gregg account.  The HH Gregg card is still active and can be used at a whole bunch of furniture and bedding retailers, Rooms2Go, Ethan Allen, Sleep Number, etc...2500+ retailers per the email.

I suppose this is their attempt to salvage whatever book of business they had with HH Gregg.  The card will be rebranded Synchrony Home and we were given the option of just using the old HH Gregg card or they will send new ones with the new name on them.

[Anonymous]

Wow a store card that can be used across many stores sounds like a great idea.  Wonder if it will earn any rewards or cash back.

[Anonymous]

I doubt there are any rewards or cash back.  I was surprised to see the Synchrony name so prominently displayed too, but I guess they have no choice in this instance.  I can't imagine that a retailer would want their customers who carry a cobranded card to have the ability to use that card at a competing retailer...using your Ethan Allen card at the Sleep Number store, for instance but if it's branded with the bank's name, it's OK.

What deals do retailers have with a bank like Synchrony on store cards?  Does the retailer get a piece of the interest or a commission for signing new customers?  Is it just a funding vehicle that hopefully keeps customers walking in the door and making future purchases?  I have no notion about how that works.

[Anonymous]

Anyone driving sales to banks gets a negotiated piece plus usually some tier boost for hitting certain numbers.

Can't imagine it's all that huge but it does mean the retailer is avoided a merchant fee most likely, or at least had a much reduced one.

Most store cards tend to be for high margin stores, tho. Not Walmart or Amazon, but stores that sell at high profits per dollar spent. VS margins are astronomical. Stuff like that.

[Benzman]

Wonder if it will be accepted at the hhgregg.com online store when it reopens?

[mitchblue]

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@Anonymous wrote:

I doubt there are any rewards or cash back.  I was surprised to see the Synchrony name so prominently displayed too, but I guess they have no choice in this instance.  I can't imagine that a retailer would want their customers who carry a cobranded card to have the ability to use that card at a competing retailer...using your Ethan Allen card at the Sleep Number store, for instance but if it's branded with the bank's name, it's OK.

What deals do retailers have with a bank like Synchrony on store cards?  Does the retailer get a piece of the interest or a commission for signing new customers?  Is it just a funding vehicle that hopefully keeps customers walking in the door and making future purchases?  I have no notion about how that works.

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What would be an advantage of a card like this that doesn't offer any rewards or cash back?

[Anonymous]

We only opened the account in the first place because they had a promotional financing offer...bought kitchen appliances, fridge, stove, microwave and dishwasher, paid them off before the free financing timed-out.  The ONLY reason we would use it in the future is to buy furniture and that would likely ONLY be if there was a promotional financing offer of some sort. 

If nothing else, it's a $5000 TL reporting a zero balance to help my utilization.