We notice you are visiting from a U.S. Internet provider. 
23/03/2010 -
Merchants considering partnering with a credit card processing company to offer a co-branded credit card may find the co-branded landscape is bleaker than usual, thanks to card-related losses such as customer defaults.The Wall Street Journal reported Tuesday that co-branded and affinity cards have fallen out of favor by credit card processing companies as they look to reduce expenses in a tough credit environment.
For example, JP Morgan Chase is dropping its Starbucks Duetto Visa card, as is Royal Bank of Canada. JP Morgan Chase has also recently dropped its deals with beauty product retailer Avon, as well as a number of universities and sports teams.
Meanwhile, Bank of America has reduced its 5,000 affinity card programs to 4,400.
"Issuers are taking a long, hard look at what they're offering and focusing on getting [the] best cards into [the] best customer hands," Megan Bramlette, a managing associate at financial services consulting firm Auriemma Consulting Group, told the Journal.
However, one profitable way for retailers to put their name on a card is through store-branded gift cards. Studies have shown that of all the payment processing segments, prepaid cards such as gift cards are experiencing one of the highest growth rates.
