What is Co-branded Credit Card?
A co-branded credit card is a payment card issued by a bank in partnership with a non-bank brand such as an airline, retail chain, hotel group, or fuel company. In India, for example, a bank might team up with an airline like Air India or Indigo; the resulting co-branded credit card carries both the bank’s and the partner’s logos. Cardholders earn rewards, discounts, or privileges when they use the card to make purchases with the partner brand (for example, flight bookings, shopping at a particular store, or refueling at certain petrol pumps).
The bank handles all banking aspects credit limits, billing, and customer service while the partner brand provides special perks to cardholders. Co-branded cards aim to benefit both the issuing bank (by expanding its customer base) and the partner brand (by encouraging loyalty and repeat business).
Types of Co-branded Credit Cards
Airline Co-branded Cards:
These cards focus on frequent flyers. In India, popular examples include the SBI Air India Signature Card, the HDFC IndiGo Card, and the Axis Bank Vistara Card. Cardholders earn air miles or points for every purchase and can redeem them for flight tickets, upgrades, or lounge access.
Retail Co-branded Cards:
Partnering with retail chains or e-commerce platforms, banks issue cards that offer cashback, discounts, or reward points on purchases made at specific stores. For instance, the HDFC Shoppers Stop Card gives extra reward points when shopping at Shoppers Stop outlets. Similarly, the ICICI Amazon Pay Card provides cashback on Amazon.in purchases.
Fuel Co-branded Cards:
These cards offer fuel surcharge waivers, discounts, or reward points when you refuel at partner petrol pumps. Examples in India include the SBI BPCL Card and the Axis Bank BPCL PetroCard. Cardholders can save on fuel costs and earn points that can be redeemed against future purchases.
Hotel and Hospitality Co-branded Cards:
Issued in partnership with hotel chains or hospitality platforms, these cards allow users to earn reward points on stays, dining, or other services. For example, the Axis Bank Marriott Bonvoy Card offers accelerated points on Marriott stays and dining at participating hotels.
Lifestyle and Entertainment Co-branded Cards:
Some cards tie up with movie chains, restaurants, or lifestyle brands. For instance, banks may partner with a cinema chain to offer discounts on ticket bookings or with a restaurant chain to give dining vouchers. These cards cater to customers who spend more on leisure, entertainment, or dining.
Components of a Co-branded Credit Card
Issuing Bank’s Name and Logo:
This is usually prominently displayed on the front of the card. The bank’s branding indicates who is responsible for issuing the card, setting credit limits, handling billing, and providing customer support.
Partner Brand’s Name and Logo:
Alongside the bank’s logo, you will see the co-brand partner’s identity airline name, retail chain logo, or fuel company branding. This signals special privileges when transacting with that partner.
Card Number, Expiry Date, and CVV:
Like any other credit card, a co-branded card has a unique 16-digit card number, a validity period (month and year), and a three-digit CVV code on the back for secure online transactions.
Cardholder’s Name:
Printed on the front, this identifies the authorized user. Some premium co-branded cards may also include a contactless payment symbol for tap-to-pay functionality.
EMV Chip and Magnetic Stripe:
The EMV chip (embedded microchip) enhances security by generating a unique code for each transaction. The magnetic stripe contains encoded card information for legacy swipe machines.
Membership Number or Co-brand Identifier:
Certain co-branded cards display a membership or loyalty program number that directly links to the partner brand’s rewards account (for example, an airline loyalty number). This ensures that points or miles are credited automatically.
Contactless Indicator (if applicable):
Many modern co-branded cards in India now support contactless payments. A small wave-like symbol indicates you can simply tap the card on a compatible terminal for low-value transactions.
Customer Care and Helpline Details:
On the back of the card, you will find toll-free numbers and URLs for both the issuing bank and the co-brand partner, in case you need assistance or wish to check your loyalty balance.
Benefits of Co-branded Credit Card
- Accelerated Reward Earnings: Co-branded cards often offer higher reward points or miles for transactions made with the partner brand. For example, a co-branded airline card might give 10× miles on flight bookings, whereas other stores might earn 1× or 2× miles.
- Exclusive Discounts and Offers: Cardholders get access to special deals discounted airfares, promotional retail sales, complimentary hotel room upgrades, or fuel surcharge waivers. These savings can add up, especially for frequent users.
- Enhanced Loyalty Perks: By using a co-branded card, you automatically earn or maintain loyalty status with the partner brand. For instance, spending on an airline card may help you reach or retain elite tier status faster, unlocking benefits like priority check-in or extra baggage.
- Waived or Reduced Fees: Some cards waive annual fees if you meet a minimum spends requirement on the co-brand partner’s products. Fuel co-branded cards often waive fuel surcharges, saving up to 1-1.5% on every fuel purchase.
- Integration of Banking and Rewards: Transactions automatically earn both credit card reward points and co-brand loyalty points. You do not need to register separately with the partner’s loyalty program, since most co-branded cards auto-enroll you.
- Bundled Insurance and Travel Cover: Many premium co-branded cards include complimentary travel insurance, air accident cover, or purchase protection for items bought from partner brands. This ensures peace of mind at no extra cost.
- Priority Services: Co-branded travel cards often come with airport lounge access, priority boarding, or expedited security checks. Retail partners might offer early access to big sale events or priority customer support.
- Billing and Payment Convenience: By consolidating purchases from a specific brand onto a co-branded credit card, you can monitor and manage your spending more easily. Monthly statements highlight category-wise spends, helping you plan future budgets.
Features of Co-branded Credit Card
Customizable Reward Structure: Depending on the co-brand partner, the card’s reward ratios can vary. Airlines may offer miles per ₹100 spent; retailers might give reward points per ₹200 spent; fuel cards could provide X points per litre.
Tiered Membership Benefits: Many co-branded cards have tiered benefits based on annual spending. Reaching a certain spend threshold might unlock higher lounge access privileges, bonus miles, or a free companion ticket.
Flexible Redemption Options: Points or miles earned can often be redeemed for partner services flight tickets, hotel stays, shopping vouchers, or fuel discounts. Some cards also allow transfers of points to other loyalty programs.
Welcome and Anniversary Bonuses: To attract new customers, co-branded cards frequently come with sign-up bonuses free lounge passes, bonus miles, or gift vouchers after a minimum spend in the first 90 days. Anniversary bonuses reward long-term users with renewal points or complimentary gifts.
Fuel Surcharge Waiver: Specifically for fuel co-branded cards, banks waive the standard 1-1.5% fuel surcharge at partner petrol pumps. Cardholders can thus save on each fuel fill-up.
Contactless Payments and EMI Conversion: Modern co-branded cards support tap-to-pay for quick checkouts. Additionally, high-value purchases at partner outlets can often be converted into Equated Monthly Installments (EMIs) at reduced interest rates.
Online and Mobile App Integration: Issuing banks provide dedicated mobile apps or internet banking portals where users can track reward balances, view partner offers, block/unblock cards, and manage statements. This digital interface makes usage seamless.
Supplementary Card Facility: Most co-branded cards allow primary cardholders to add family members as supplementary card users. The supplementary users can earn rewards, and their spending contributes to the main account’s reward tally.
Security Features: Chip and PIN protection, SMS alerts for transactions, and the ability to freeze the card instantly via mobile app or customer care help secure your finances. Some cards also allow single-use virtual card numbers for online spends.
How Does Co-branded Credit Card Work?
- Partnership Agreement: First, a bank signs a co-branding agreement with a partner brand. This defines reward structures, fees, marketing responsibilities, and customer support processes. For example, SBI and Air India agree that for every ₹100 spent, a cardholder earns one air mile.
- Card Issuance and Distribution: The bank designs the co-branded card featuring both logos, sets credit limits based on the applicant’s creditworthiness, and issues the card to approved customers. The partner brand promotes the card through its channels (websites, stores, check-in counters).
- Spending and Reward Accumulation: Whenever a cardholder uses the co-branded card for any purchase (with any merchant), they earn standard reward points according to the bank’s general rewards program. When they spend with the partner brand (say, booking an Air India flight or shopping at a specific retail chain), they earn accelerated points or miles as per the co-brand agreement.
- Reward Posting and Loyalty Linking: The bank’s backend system automatically credits the earned points or miles to the cardholder’s loyalty account (for example, the cardholder’s Air India Flying Returns account). In most cases, you do not need to separately claim points; the system recognizes eligible transactions and posts rewards within a billing cycle or two.
- Redemption Process: Once cardholders accumulate sufficient points or miles, they can redeem them through the partner’s loyalty portal or via the bank’s credit card rewards portal. Redemption options may include free flight tickets, upgrades, retail vouchers, or fuel discounts depending on the partner brand’s program.
- Billing and Payment: Like any credit card, the co-branded card’s billing cycle is monthly. Cardholders must pay at least the minimum due by the due date to avoid late fees. If the full outstanding amount is not paid, interest is charged as per the bank’s prevailing rate.
- Renewal and Tier Upgrades: Annually, the bank reviews the cardholder’s spending. Users who meet specified spend thresholds may qualify for higher-tier benefits (such as free add-on facility or bonus miles). The co-brand partner may also grant additional perks, like priority check-in or complimentary lounge visits, upon renewal.
How to Use Co-branded Credit Card?
Activate Your Card:
When you receive the co-branded card by courier, activate it by calling the bank’s toll-free number or through net banking/mobile app. Set a secure PIN for chip-and-PIN transactions.
Familiarize Yourself with Partner Offers:
Visit the partner brand’s website or the bank’s rewards portal to see current promotions. For instance, an airline co-brand might have limited-period bonus mile offers or discounted award ticket charts.
Use for Everyday Purchases:
Even when you shop or pay bills outside the partner’s network, use your co-branded card to earn baseline reward points. This ensures continuous accumulation toward partner rewards.
Maximize Partner-Specific Spends:
- To make the most of accelerated rewards, use your card for partner brand transactions. For example:
- Book flights directly through the airline’s website or app (not through third-party travel portals).
- Shop at the retail chain’s stores or online platform using the co-branded card for extra points.
- Refuel at specified petrol pumps and swipe the co-brand fuel card to save on surcharges and earn points.
Monitor Monthly Statements:
Check your credit card statement every month to verify transactions, reward postings, and any fees charged. If you spot discrepancies, report them promptly to the bank.
Redeem Rewards Strategically:
Plan redemptions when they yield maximum value. For example, redeeming airline miles for peak-season travel or retail points during major sale festivals can stretch the value of each point.
Pay on Time:
To avoid interest and maintain a good credit score, always pay at least the minimum amount by the due date. Ideally, clear the full balance each month to enjoy interest-free credit.
Stay Updated on Offers:
Banks and partner brands frequently launch time-bound promotions such as bonus points festivals, discounted fuel offers, seasonal retail vouchers, or complimentary service upgrades. Subscribe to email alerts or SMS notifications to catch these deals early.
Co-branded Credit Card Eligibility
Eligibility can vary slightly from one bank to another, but generally, Indian banks set the following criteria:
- Age Criteria: Primary cardholder must be between 18 and 65 years of age. Some premium co-branded cards require a minimum age of 21 or 23.
- Income Requirements: A stable source of income is mandatory. Salaried applicants often need to provide salary slips or Form 16. Self-employed professionals and business owners must submit income tax returns (ITR) or profit-loss statements. The minimum annual income requirement ranges from ₹2.5 lakh to ₹10 lakh, depending on the card variant.
- Credit Score: A good credit history (CIBIL score above 700) increases the chances of approval. Banks evaluate your credit behavior credit utilization, repayment history, and existing loan commitments.
- Employment Stability: Salaried individuals usually need at least two years of continuous employment with the current employer. For self-employed applicants, banks often look for two to three years of business vintage and consistent earnings.
- Existing Banking Relationship: Some banks favor applicants who already hold a savings or current account with them. Having a prior relationship may lead to faster approvals or lower documentation requirements.
- Co-brand Partner’s Loyalty Program Membership: In a few cases, the bank may require you to have an existing membership with the partner’s loyalty program (for example, an airline’s frequent flyer program). However, most co-branded cards automatically enroll you upon approval.
- Resident Status: Only Indian residents are eligible for most co-branded cards. Non-resident Indians (NRIs) can apply for select credit card variants but should check bank-specific guidelines.
Documents Required for Co-branded Credit Card Application
While exact document lists can differ slightly across banks and for salaried vs. self-employed applicants, the following are commonly required when applying for a co-branded credit card in India:
Identity Proof (Self-Attested Copies):
- Aadhaar Card (UIDAI)
- PAN Card (mandatory for financial transactions)
- Passport (for NRIs or as alternate ID)
- Voter ID or Driving License (alternate options)
Address Proof (Self-Attested Copies):
- Aadhaar Card (if not used as ID proof)
- Passport (if not used as ID proof)
- Voter ID (if not used as ID proof)
- Utility bills (electricity, water, gas) not older than three months
- Rent Agreement (if residing in a rented property)
Income Proof (Self-Attested Copies):
For Salaried Individuals:
- Latest two to three months’ salary slips
- Form 16 or Income Tax Returns (ITR) for the last two years
- Bank statement for the last six months (showing salary credits)
For Self-Employed/Business Owners:
- Income Tax Returns (ITR) for the last two to three years
- Profit & Loss statements or balance sheet certified by a Chartered Accountant (CA)
- Bank statements for the last six months (business or personal, as applicable)
Photographs:
Two recent passport-size photographs with the applicant’s name and date written on the back.
KYC (Know Your Customer) Documents:
Completed KYC form provided by the bank, including personal details, employment status, and signature.
Loyalty Program Membership (if applicable):
Some co-brand cards may require proof of enrollment in the partner’s loyalty program (e.g., an airline frequent flyer account number). In most cases, banks help create or link the loyalty account upon card approval.
Additional Documents (If Requested):
- Credit bureau consent form (for banks to pull your credit report)
- Existing bank account statement or bank letter for salary account-linked cards
- Business registration proof (for professionals or business owners)
Once you submit these documents and complete the application (online or in-branch), the bank verifies your eligibility, credit history, and income. If your application is approved, the co-branded credit card is dispatched within 7-10 business days. Always ensure that you submit clear, self-attested copies and maintain originals for verification if the bank requires them at any stage.