Private label cards

Usually, credit cards fall into one of two categories general purpose cards and private label cards. General purpose cards can be further assigned to the categories standard, affinity, and cobranded. Exhibit 13.1 shows the various types of credit cards. 

Private label cards are issued and administered by retailers. Usually, they are given to customers for use in their stores, and their main function is to promote the retailer s products. As a result, credit underwriting may not be as stringent as it is for other types of credit cards. In Europe, as of this writing, there has been only one private label ABS transaction so far. In December 2000, Findomestic Banca S.p.A. securitised credit card borrowings generated through the company s credit card product Carta Aura. 

Arthur Blank Company is the largest producer of private label plastic cards in North America, printing and personalising more than 850 million plastic cards a year. Manufacturing capacity exceeds 1 billion cards. Major customers include American Airlines, American Express, Amtrak, AT T, Barnes Noble, British Airways, Blue Cross Blue Shield, Costco, Exxon, Hyatt Hotels, IBM, L.L. Bean, Pizzeria Uno, Sears and 7-Eleven. 

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