Mixed payment / credit cards, “co-branded”

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The co-banded card

The co-banded card

A co-branded card is a “co-branded” credit card created in partnership between a credit organization and a brand or an association.

The co-branded sign card, is a partnership between a brand and a credit agency, which will put its financial expertise at the service of the brand.

The co-branded affinity card is, for its part, offered by a credit organization, with a non-commercial organization: football club, charity association, sports federation …

Advantages

These cards work just like any other payment card. You can pay with them your purchases in all the stores (and not only those of the sign) and make withdrawals at the vending machines, in France and abroad.

They will also offer the services and insurance related to the corresponding card range, will allow the classic uses such as withdrawal or purchase and will offer advantages: points, discounts, eventual cash-back (coupons, coupons, samples, gifts, promotions …). The card will also work as a loyalty card of the brand or co-branded association (loyalty points, preferential offers, discounts, etc.)

Possible dangers

Co-branded cards with a sign may include a revolving credit card function related to the sign. And here, we must be careful not to get caught in the traps of revolving credit. Since 2011, following the Lagarde reform, the cash payment function applies ex officio, if the cardholder does not opt ‚Äč‚Äčexpressly for payment on credit.

The “double action” card

The "double action" card

Banks or their subsidiaries specializing in consumer credit also offer so-called double-action cards.

At CreditCole the Catwin card, at BNP Paribas the Provisio card and at Société Générale the Alterna card.

These credit cards allow the cardholder to choose between each payment (or withdrawal to the distributor) between the cash payment or the payment on credit.

The cash payment function is the first choice by default (since the Lagarde law of 2010). It is up to the cardholder to voluntarily activate the credit function of the card, in order to avoid misuse of credit.

But most institutions offer options such as automatic activation of the credit function from a purchase amount previously set by the cardholder.

A bank card backed up with a cash reserve

If the credit function is chosen, the sum is debited from the cash reserve associated with the card at the time of the subscription: the “double action” card is indeed a revolving credit card, whose interest rates are relatively high (between 10 and 17% or even almost 20%, within the limit of wear rates).

To use the credit line, the user simply has to press the key indicated by the store’s payment terminal or the ATM screen.

The subscription of a “double action” card and the “cash reserve associated with the card” is done either as part of a banking package or à la carte.

If you opt for a card of this type, be careful to make wise use of its credit function. Feel free to use our revolving credit calculator. Remember that other types of credit (personal credit, conventional consumer credit) exist and are generally less expensive.

It is possible to terminate the “double action” card agreement at any time, by returning the card (often it is recommended to return it “cut, with letter acknowledgment receipt). Note that the return of the card does not end the credit reserve, which can remain available and activatable. It is therefore necessary to cancel the revolving credit and to repay the amounts remaining due.

Abroad, especially in the Anglo-Saxon countries, payment cards are systematically credit cards.