Private label credit cards offer a dedicated line of credit under a retailer's or manufacturer's name and are only accepted at their locations. Consumers choose how much of the account balance to pay off each month, subject to minimum payments.

For the retailer, these cards provide branded customer service and help to generate incremental sales and gross margins. They serve to enhance the customer's experience in the store with loyalty programs, promotions and added incentives for the frequent shopper, ultimately strengthening the customer relationship. The private label credit card can also deliver significant value to a retailer by providing valuable customer information and helping to build a customer database.

In many locations, the customer can apply instantly for the retailer's card and immediately shop for merchandise, upon approval.