Out of curiosity what is the idea behind cobranded cards? Do companies get together because they both want to design a new card but don't want to foot the entire bill themselves?
that is what Toyota and bmw did with the new Supra, they both wanted to make a new sports car but neither one wanted to foot the entire bill Incase it failed. So they worked together, bmw provided the engine and powertrain. Toyota supplied the body and the assembly plant.
@Anonymous wrote:
@FicoMike0 wrote:I guess I do have a cobranded card, I have amex Hilton white card. It counts the same as the amex bce.
I have 3 co-brands. Mix of open-loop and close-loop.
I believe @NoHardLimits hit cb.. the nail on the head.
The line items on the FICO app under credit mix
- revolving accounts = All revolvers. Both open-loop and close-loop
- bank issued credit cards = Only open-loop revolvers.
-----
And maybe Toyota's, Bmw's, and, Supra's can get their own line items.
So, it seems like the credit mix category of "bank-issued credit cards" is poorly named. Closed loop store cards, which are bank-issued revolvers, are excluded. Amex charge cards, which are bank-issued non-revolvers, are also excluded.
The OP's example of the BMW & Toyota joint venture with the Supra is a different relationship from what we regard as co-branded credit cards. BMW & Toyota are both car companies who were interested in contributing to the development of a low volume sports car, but couldn't make the numbers work to do it alone. Co-branded credit cards are partnerships involving two parties in different industries. One party is a financial institution with the authority to issue credit cards; the other party is looking for additional sources of revenue to supplement their main industry (e.g. hotel, airline, retail store). In some cases, like airlines, the credit card side of the equation may actually exceed the revenue produced by their main business of flying passenger planes.
Earlier in this thread, I wondered about non-bank financial institutions (e.g. brokerage and insurance companies) with credit cards issued by real banks in the background. These would include the State Farm card issued by US Bank, and the Charles Schwab card issued by Amex. I suppose those would also be examples of co-branded cards.
We still need more data regarding non-banks (e.g. credit union and consumer finance companies) which issue their own credit cards. How about virtual banks like SoFi?
Thanks for the explanation of co branded cards, also impressed at your knowledge of the Supra, I honestly wasn't expecting anyone to know what I was talking about. But figured I would throw the comparison out just in case.
so, let's say there's a co branded card between Marriott and Amex. They would then split the profits equally? I wonder if the profit sharing includes swipe fees? Like in this example would marriot get 50% of all the swipe fees?
I personally have no experience with co branded cards since I have never had a use for them. I never stay at hotels, Never fly, etc. although I would be interested in a co branded stop and shop or Walmart card. At those are my 2 main groceries stores. Something that gives you really good cash back at those locations. Say like 5-10%?
I also use Instacart somewhat often so if the stop and shop card included a big discount for them as well (since stop and shop owns Instacart) that would be the card for me.
@Cblough93 wrote:Thanks for the explanation of co branded cards, also impressed at your knowledge of the Supra, I honestly wasn't expecting anyone to know what I was talking about. But figured I would throw the comparison out just in case.
so, let's say there's a co branded card between Marriott and Amex. They would then split the profits equally? I wonder if the profit sharing includes swipe fees? Like in this example would marriot get 50% of all the swipe fees?
I personally have no experience with co branded cards since I have never had a use for them. I never stay at hotels, Never fly, etc. although I would be interested in a co branded stop and shop or Walmart card. At those are my 2 main groceries stores. Something that gives you really good cash back at those locations. Say like 5-10%?
I also use Instacart somewhat often so if the stop and shop card included a big discount for them as well (since stop and shop owns Instacart) that would be the card for me.
I'm a dues paying member of the BMW Car Club of America, so I'm probably better informed about the Supra than the average person on the street. However, that is not a topic for the Understanding FICO Scoring forum. Individually negotiated agreements between co-branded credit card partnerships are also not really fodder for this forum. Perhaps move these types of discussions over to the SmorgasBoard section of myFICO or even over to other internet forums which may be better equipped to provide answers to such questions.
one more question about co branded cards.
You mentioned co branded cards are between 2 companies in different markets. But there are cards that are combined between 2 card issuers as well, so what type of card would those be considered?
im referring to cards Such as
- the credit one Amex card, it's a card only offered by credit one, but it's an Amex.
im sure there are others like this card out there too.
@Cblough93 wrote:
one more question about co branded cards.
You mentioned co branded cards are between 2 companies in different markets. But there are cards that are combined between 2 card issuers as well, so what type of card would those be considered?
im referring to cards Such as
- the credit one Amex card, it's a card only offered by credit one, but it's an Amex.
im sure there are others like this card out there too.
That's not a co-brand. It's just using the Amex payment network (an alternative to Visa/Mastercard/Discover). A Google search provided this link which explains co-branded credit cards:
https://www.investopedia.com/terms/co-branded-card.asp