How Co-Branded Credit Cards Work: Everything You Need to Know

Posted on Wednesday, October 30th, 2024 | By IndusInd Bank

Ever wished your credit card could do more than just swipe and pay? What if it could unlock flight upgrades, special restaurant discounts, or even free hotel nights? That’s the magic of co-branded credit cards. These cards are built for people who love getting extra value from their everyday spending—whether you’re a frequent flyer, a foodie, or just someone loyal to your favorite brand.

In this blog, we’ll walk you through how co-branded cards work, their pros and cons, and which ones from IndusInd Bank might be your perfect match.

What is a Co-Branded Credit Card?

In simple terms, a co-branded credit card is a credit card that’s launched through a partnership between a bank and a specific brand—think airlines, restaurants, hotels, or retailers. While the bank takes care of the financial processing, the brand brings in loyalty perks and rewards that align with your interests. It’s like having the best of both worlds: your usual credit card benefits plus exclusive brand-specific bonuses.

An Overview of Co-Branded Credit Cards

So, what makes these cards special? Co-branded credit cards are tailored to give you:

• Faster reward accumulation when you shop with the partner brand
• Exclusive discounts and vouchers only available to cardholders
• Priority access to events, lounges, or flash sales
• Freebies and upgrades based on your usage and loyalty

They’re ideal for anyone who regularly shops with or uses the services of the partner brand. The more you engage, the more you earn.

How Do Co-Branded Credit Cards Work?

Here’s how this plays out. You apply for a co-branded credit card offered by a bank and a brand you like. Once approved, you use it just like any other credit card—but when you shop at the brand’s outlets or platforms, you earn extra rewards or get exclusive discounts.

For example:

• A co-branded credit card in association with an airline could provide frequent flyer miles with every purchase. 
• Similarly, retail co-branded cards may offer cashback or discounts on brand-specific products. 
• Some co-branded credit cards can also be a collaboration between two financial institutions. This can be based on revenue sharing or other agreements. 

Pros and Cons of Co-Branded Credit Cards

Now that you know the co-branded credit card meaning, let’s see its merits and demerits. 

Now that you know the meaning of co-branded credit cards and their merits and demerits, the question arises: should you opt for it?

When You Should Opt for Co-Branded Credit Cards?

• Co-branded credit cards are best suited for individuals who are loyal to a specific brand and use its products or services frequently. 

• For example, people who travel with a particular airline would benefit from a co-branded airline card. Similarly, shoppers who prefer a specific brand or shopping platform can enjoy savings and rewards with a co-branded retail credit card. 

• If you are looking to earn rewards faster and benefit from exclusive perks, co-branded credit cards could be a great choice. 

• However, a general-purpose credit card might be better if you are looking for more flexibility in earning and redeeming rewards.

IndusInd Bank Co-Branded Credit Cards

IndusInd Bank offers several co-branded credit cards that cater to various lifestyle needs. Here are three popular options:

EazyDiner Credit Card

Perfect for food enthusiasts, the EazyDiner Credit Card (in association with EazyDiner) offers up to 50% discounts at over 2,000 premium restaurants. It also offers exclusive EazyDiner Prime membership benefits. Users can further save on dining by redeeming reward points for further discounts.

Avios Visa Infinite Credit Card

For frequent travellers, this co-branded Credit Card with Avios offers the opportunity to earn points. These points can be redeemed for flights, hotel stays, and more. The card also offers premium travel benefits like airport lounge access, milestone benefits, renewal benefits, and more. 

Tiger Credit Card

Created in association with Tiger Fintech Pvt Ltd, this co-branded Credit Card comes with a host of benefits. With the Tiger Credit Card, one can enjoy accelerated reward points, complimentary golf games, airport lounge access, and more. 

Also Read: List of Best Premium Credit Cards to Transform Your Lifestyle

Wrapping Up

Co-branded credit cards are an ideal solution for consumers who have a strong affinity for specific brands. However, one must evaluate whether the card aligns with their lifestyle and offers the flexibility they need. 

If you are looking for specialised rewards, an IndusInd Bank co-branded Credit Card may be the perfect addition to your wallet.

Explore IndusInd Bank’s co-branded Credit Card options today! Apply Now.