Polymath Consulting Private Label Cards - Polymath Consultancy

Putting Private Label Into Practice
• Our current understanding is that Private Label and Scheme branded cards cannot be mixed on
the same BIN i.e. A separate BIN is required for private label programs
• Transactions pass through the acquirer as if they were Visa/MasterCard therefore the acquirer
does not have to be formally notified, unless bilateral agreements are put in place
• For online transactions although the transaction passes through as any normal Visa/MasterCard
consumers if they are selecting from a drop down ‘card type’ box must be able to select the
private label card as an option.
• Processors need to have the merchant ID in order to ‘white list’ transactions coming from the
merchants that are part of the Private Label acceptance network.
• Mastercard fees are fixed per transaction with no volume discounts
• A brand partner is enabled to negotiate agreements with the Issuer and Acquirer to incluence the
interchange (influencing MSC fees) and if the brand is also the merchant there is scope to make
individual arrangements with regards to settlement.
• The brand can also hold the subject to sufficient funds for settlement at all times – negotiations
required with BIN sponsor as to this exact level – don’t understand this statement
• It is possible for Paypass to be licensed for use on a private label products
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