How Do Credit Card Affiliates Work

Video Transcript

"This is financial adviser Patrick Munro talking about how do credit card affiliates work. Credit card affiliates are essentially companies that brand a credit card and present a credit card that is representative of the given bank to their private customers. For instance, electronic stores will draw in people that are interested in electronic purchases sometimes these purchases are costly. Cellphones and plasma screen TVs and computers in this instance. They will offer a credit card with the credit card Visa or Mastercard logo on there and also brand their logo as well. So these are called affinity groups and they are able to draw in a new market for the credit card company. It's a great way for the credit card company to grow their business and it's also a great way for that particular group to have the service of a strong bank so that they are able to process the payments for their goods and services. It's also convenient for the consumer so it's a triple win, win, win situation. This is Patrick Munro talking about the benefits of affinity groups when it comes to credit cards."