Inputs for developing a co-branded card

[Riya Sharma]

Because his mission target is different .. He does this for his fun , Moolah is not a criteria here..

that is cool but he should do it only for the people. The banks are always the enemy. Never help the enemy.

 

[SSV]

that is cool but he should do it only for the people. The banks are always the enemy. Never help the enemy.

I feel sorry for you... In this particular scenario, you completely missed the plot.. in understanding who is enemy and who is friend for him..
His mission has succeded in your case..

 

[atx]

I feel sorry for you... In this particular scenario, you completely missed the plot.. in understanding who is enemy and who is friend for him..
His mission is success in your case..

exactly haha !

 

[newinnov]

So good to see all the feedback on how an ideal card should be

Dont get your hopes up in thin air 🤣

 

[newinnov]

Yo, @ParthagorasMAx Ok, i give you some details -

1) first of all exclude this categories for reward points/cashback, these are misusing categories MCC Code -

MCC categories: Fuel related (MCC 5541, 5983, 5172, 5542, 5552), e-wallets (MCC 6540), payment of property management fees, rental commissions, rental payments or any such payments made through MCCs 6513, 7012, 7349, Business to Business txns made through MCCs 7399, 7311, 7372, 5045, 5047, 5065, 5072, 5111, 5013, 2741, 5137, 5192, 5193, 5131, 7361, 5085, 7333, 5039, 7379, 5021, 5199, 5122, 5099, 5198, 5139, 7829, 7395, 5051, 5046, 5169, 7375, 5074, 8734, 5044, 2842, 2791, education and government related txns carried out through MCCs 9399, 8299, 8220, 8211, 8241,9311, 8244, 8249, 9222, 9402, 9211, 9405, 9950, 9223, 8351), Insurance (MCC 6300, 5960), Jewelry & Antique items (MCC 5944, 5094, 5932,5937), Gambling (MCC 7995), Tolls and Bridge Fees (MCC 4784), Financial and Non-Financial Institutions (MCC 6011, 6010, 6012, 6051), Security Broker Services (MCC 6211), Collection Agencies (MCC 7322), Charity (MCC 8398, 8641), Money Transfers (MCC 4829), Utility (4814, 4816, 4899, 4900) and Wholesale Clubs (MCC 5300)

2) If possible don't offer statement credit cashback. Offer gift voucher redemption option like Amazon gift voucher, Flipkart gift voucher etc.

Also charge Rs 99+GST for every time gift voucher redemption.

3) Charge 1%+GST surcharge for Rent payment, Wallet spend. For Utility payment - Also impose 1%+GST surcharge on utility spends above 15k or 20k per billing cycle (there are many apps available where you can transfer your credit card balance to bank and merchant category is mostly Utility, so imposing 1%+GST surcharge on utility spends above 15k or 20k per billing cycle is good idea).

4) If possible exclude Amazon for any reward points/cashback, Reason ? Customers are buying Amazon gift vouchers, or they cancel the order and choose the refund option Amazon gift voucher. If you don't know, you can use an Amazon gift voucher to pay utility or insurance bills, or to buy jewelry, gold, etc.

Or you can also do this: customers will get only 1% cashback on Amazon transactions, but no more than that.

5) RuPay Credit Card on UPI transaction - Zero reward points/cashback for transaction under 2k due to Free MDR. Transaction above 2k, No need to offer more than 1% cashback. Personally, I believe that since there is no competition, 0.25% to 0.5% reward points or cashback is enough for UPI transaction.

6) Initially launch chargeable card atleast 500+GST, The charges depend on the type of cards you launch, such as a premium card or a super premium card, etc. For example - If super premium card then charge Rs1499+GST etc.

Now I said that initially the card should be chargeable, later you can offer Lifetime free card for new customers. But if it's a small startup company, you can offer a lifetime free card from the beginning.

7) UPI spend based offer. As I mentioned earlier, higher rewards or cashback should not be given for UPI spending, but you can offer UPI spend-based promotions to select customers from time to time.

Most important point - If this is co-branded card then UPI spend rewards or cashback should only be given through the cobranded company's UPI apps. Zero rewards or cashback should be given for third-party UPI apps like GPay, Paytm, Phonepe, Amazon UPI etc.

8) RuPay credit card spend reward points/cashback - Listen, if you offer more than 2% reward points or cashback, customers will misuse it. Not only on card transactions, but also on UPI transactions. Better to offer card spend-based promotions like

5% Cashback upto 100 on bigbasket spend, 10% cashback upto 100 on Uber spend etc.

But remember to avoid Flipkart and Amazon, otherwise customers will misuse it by only buying and reselling Amazon or Flipkart gift vouchers.

I can provide more details on cobranded cards if you specify the cobranded type you plan to launch. Otherwise, it will just be speculation, and I won't be able to precisely determine how much reward points or cashback should be given.

The same applies to UPI spending. If the company is specifically targeting UPI spending, more details should be shared about the type of cobranded card it is, whether it belongs to a well-established company or a small startup, etc., so that I can provide better insights.

Negative copy karta h re tu... 😉

 

[m4b]

Here:
Charge Card
Upto 8% off on everything when redeeming to transfer partners and 4% for cashback
Comes with dual cards, i.e One will be on Visa/MC and other will be RuPay for UPI. You may half the reward rate on the RuPay card and impose limits.
Setup Smartbuy like portal for gift card purchase at 3x/5x points
Annual fee will be 12000 inr and reversal at 8 lakhs.

 

[Slayer]

Here:
Charge Card
Upto 8% off on everything when redeeming to transfer partners and 4% for cashback
Comes with dual cards, i.e One will be on Visa/MC and other will be RuPay for UPI. You may half the reward rate on the RuPay card and impose limits.
Setup Smartbuy like portal for gift card purchase at 3x/5x points
Annual fee will be 12000 inr and reversal at 8 lakhs.

I think gyftr would be a better implementation than smartbuy??

 

[Riya Sharma]

I think gyftr would be a better implementation than smartbuy??

yeah that is what I meant. Gyftr with a smartbuy like implementation.

 

[ppac18]

Remember PRE-PAID RuPay cards like JUNIO n FabMoney (previous name PepperMoney). They too were giving 1% cashback on almoat all trxns. Despite good design, n better features, they did not get huge client base. Their own Apps were really good. Still, failed to take off in a big way.

How many took these cards? And, how many use it daily? Or, weekly ?

In that context, huge base and repeated use are the two main aspects one must focus.

Almost all of us already have at least 1 or 2 RuPay CCs and 1 or 2 RuPay DCs or RuPay virtual digital cards from different banks.

Why will we take your new card?

The problem with these prepaid cards is that they are only partial solutions. So the burden of figuring out which credit card/other payment method can be used to charge them while still ensuring a positive reward rate at the end of the transaction falls on the user. In that context, I'd love to see a CC/Prepaid card combination where users don't have to pay transaction costs for loading the prepaid card if the companion CC is used. There should obviously be fair use limits both on how much users can load without transaction costs (like the Slice card) and an upper limit on the rewards they can make in each MCC and overall, but a payment solution that simplifies the entire mess of using multiple wallets and multiple cards because to account all the different ways in which merchants handle and restrict payments (like what we are seeing for Rupay CCs) would find a lot of uses, in my opinion.

 

[Anil_Singh]

Yo, @ParthagorasMAx Ok, i give you some details -

1) first of all exclude this categories for reward points/cashback, these are misusing categories MCC Code -

MCC categories: Fuel related (MCC 5541, 5983, 5172, 5542, 5552), e-wallets (MCC 6540), payment of property management fees, rental commissions, rental payments or any such payments made through MCCs 6513, 7012, 7349, Business to Business txns made through MCCs 7399, 7311, 7372, 5045, 5047, 5065, 5072, 5111, 5013, 2741, 5137, 5192, 5193, 5131, 7361, 5085, 7333, 5039, 7379, 5021, 5199, 5122, 5099, 5198, 5139, 7829, 7395, 5051, 5046, 5169, 7375, 5074, 8734, 5044, 2842, 2791, education and government related txns carried out through MCCs 9399, 8299, 8220, 8211, 8241,9311, 8244, 8249, 9222, 9402, 9211, 9405, 9950, 9223, 8351), Insurance (MCC 6300, 5960), Jewelry & Antique items (MCC 5944, 5094, 5932,5937), Gambling (MCC 7995), Tolls and Bridge Fees (MCC 4784), Financial and Non-Financial Institutions (MCC 6011, 6010, 6012, 6051), Security Broker Services (MCC 6211), Collection Agencies (MCC 7322), Charity (MCC 8398, 8641), Money Transfers (MCC 4829), Utility (4814, 4816, 4899, 4900) and Wholesale Clubs (MCC 5300)

2) If possible don't offer statement credit cashback. Offer gift voucher redemption option like Amazon gift voucher, Flipkart gift voucher etc.

Also charge Rs 99+GST for every time gift voucher redemption.

3) Charge 1%+GST surcharge for Rent payment, Wallet spend. For Utility payment - Also impose 1%+GST surcharge on utility spends above 15k or 20k per billing cycle (there are many apps available where you can transfer your credit card balance to bank and merchant category is mostly Utility, so imposing 1%+GST surcharge on utility spends above 15k or 20k per billing cycle is good idea).

4) If possible exclude Amazon for any reward points/cashback, Reason ? Customers are buying Amazon gift vouchers, or they cancel the order and choose the refund option Amazon gift voucher. If you don't know, you can use an Amazon gift voucher to pay utility or insurance bills, or to buy jewelry, gold, etc.

Or you can also do this: customers will get only 1% cashback on Amazon transactions, but no more than that.

5) RuPay Credit Card on UPI transaction - Zero reward points/cashback for transaction under 2k due to Free MDR. Transaction above 2k, No need to offer more than 1% cashback. Personally, I believe that since there is no competition, 0.25% to 0.5% reward points or cashback is enough for UPI transaction.

6) Initially launch chargeable card atleast 500+GST, The charges depend on the type of cards you launch, such as a premium card or a super premium card, etc. For example - If super premium card then charge Rs1499+GST etc.

Now I said that initially the card should be chargeable, later you can offer Lifetime free card for new customers. But if it's a small startup company, you can offer a lifetime free card from the beginning.

7) UPI spend based offer. As I mentioned earlier, higher rewards or cashback should not be given for UPI spending, but you can offer UPI spend-based promotions to select customers from time to time.

Most important point - If this is co-branded card then UPI spend rewards or cashback should only be given through the cobranded company's UPI apps. Zero rewards or cashback should be given for third-party UPI apps like GPay, Paytm, Phonepe, Amazon UPI etc.

8) RuPay credit card spend reward points/cashback - Listen, if you offer more than 2% reward points or cashback, customers will misuse it. Not only on card transactions, but also on UPI transactions. Better to offer card spend-based promotions like

5% Cashback upto 100 on bigbasket spend, 10% cashback upto 100 on Uber spend etc.

But remember to avoid Flipkart and Amazon, otherwise customers will misuse it by only buying and reselling Amazon or Flipkart gift vouchers.

I can provide more details on cobranded cards if you specify the cobranded type you plan to launch. Otherwise, it will just be speculation, and I won't be able to precisely determine how much reward points or cashback should be given.

The same applies to UPI spending. If the company is specifically targeting UPI spending, more details should be shared about the type of cobranded card it is, whether it belongs to a well-established company or a small startup, etc., so that I can provide better insights.

You just asked him to drop the idea of launching some credit card indirectly as no one will even apply for such restricted credit card. You just demotivated him.

 

[Abhishek012]

You just asked him to drop the idea of launching some credit card indirectly as no one will even apply for such restricted credit card. You just demotivated him.

Bro, this is business.

90% of credit card users use their credit cards because they don't have money or they are happy with 45/50 days of free money, they are youngster and got a job for the first time.

These 90% people use credit cards, don't repay on time and later repay 5 to 6 times more.

And also use Credit card for EMI payment.

I got another idea from EMI.

@ParthagorasMAx My 9th and 10th suggestion -

9) EMI offer - If you want to give huge offers then you should give discount offer on EMI to the customers.

Here Example - 10% discount upto 1000 or 1500 EMI offer on Amazon, Flipkart, Reliance Digital, Jiomart, Tata Cliq etc spend.

partner with e-com companies and offer 10% EMI discount.

Note - dnt offer direct 10% discount (non-EMI), Customers will misuse the offer by giving their card to others.

10) offer 0.5% upto Rs 100 or Rs 500 cashback, if customers pay their entire dues on time. Also dnt offer these cashback, if customer pay through 3rd party apps. Repayment Cashback offer should be valid only when the customer makes the payment through the company's own app.

 

[Abhishek012]

come on bro. Why would you give them all this info for free? At least ask for a one-time consultancy payment or tell them to hire you. This is the shit that a product manager gets paid lakhs to do and you did it for free.

Money is not everything. 😏😏

 

[asahi]

LOL and within a few months the company will go bankrupt. 🤣🤣

Everyone will use Utility category for bank transfer at 1% charges

2% cashback on offline spend ? 🤣🤣 Everyone will swipe the card and convert to cash at just 1% charges.

1.5% Cashback on Upi Spends ? Many customers are doing lakhs of rupees transaction every month using RuPay credit card on UPI, to get only 0.5% rewards. So no need to give 1,.5% Cashback.

3% cashback on Online spends ? There are several ways to transfer to a bank with 2% to 2.5% fee. Max 2% cashback for online spend is enough.

Cashback must be adjusted to bill ? bad idea, if customer will get an option to convert to gift voucher then customers will spend more and also charging Rs 99+GST every time gift voucher redemption. This will be a win-win deal for customers and the card issuer.

Annual Fee ₹999 Joining Fee ₹499 ? ya good idea but Lifetime free also good if it's a small startup company.

Abuse of Credit Cards happens every time, I’m speaking from consumer POV, utility payments capped ₹750 per cycle like hdfc platinum dc, i agree with upi maybe 1% is enough like Neu cards, coming to 3% cashback online spends is necessary, abusers gonna abuse its entities headache to keep them in check by every means. 99+ GST FOR Redemption is not a good idea if its a paid card. If they provide LTF & charge redemption fee then okay. But Both Annual fees & Redemption fee isn’t a Good deal.

If they want to beat the competition & make themselves heard, then the above mentioned features are must. Because these days most people holding multiple cards(dc/cc) which covers all the above features. So to make all those cards obsolete they have to do that. saying all you need is 1 single card or something like that

 

[asahi]

I think that company representatives need not to hold any development/think tank meetings just blindly follow these ideas Omg, it’s like an Open Source Code. With these many restrictions maybe it would be difficult to reach the masses I guess. With these many restrictions, if they want huge customers in terms of numbers,then their screening process must be simple, otherwise with the competition that we had today it’s difficult to get good number of customers, even if they got few customers it’s difficult for them to use the card regularly.

 

[RAMESH BABU N]

The other worrying factor for a new launch by a new fintech/bank - is the loyalty of existing customer base for the 100s of existing CCs. However bad their reward structure is, or however bad their experience is, most of the CC users (not the younger lot or those from forums like TF) tend to stay with their existing banks n CCs. Not that they are happy but the prospect of going theu the hassle of getting new CCs put these people away.

Such a lot - a huge base - shoukd be the target. Right from the first marketing ad to giving the CC in hand, the process should be happy n trouble free n very transparent.

For example, AmEx got a huge following despite their CCs not getting accepted most of the time. Why ? Loyalty. If the same CCs are to be given by say AU/FB/...
will people take them ?

Whether one accepts or not, even in today's time, brand loyalty works.

So, try to build that. Or, have a tie-up with such brands.

 

[devarshi84]

my problem with credit cards are regular devaluatrions and seperate cards for each spend. If I would launch a card it would be as follows

1. no annual fees
2. 1% return upto 1lakh. 3% upto 3lacs. 5% above 3lacs. 1000points each at 7.5L,10.0L,12.5L and 15L milestones. High spenders get higher returns. meaning you never have to devalue your card.
3. 1 domestic and international lounge for every lac of spend in anniversary year. high spends high returns negating the need to devalue.
4. 1% rewards fixed for govt, insurance, education and utilities, upto 20K per month for each category but included in spends milestones.
5. 1% + surcharge reversal on fuel. included in spends milestones.
6. zero points on EMI, Rent and wallet transactions. plus 2-3.5% charge on these transactions.
7. reward points never expire.
8. 1 reward point is 1Re for simplicity.
9. forex markup charges at 3.5%. high returns should take care of forex markup.
10. nil redemption fees.
11. redemption at POS or as statement credit.
12. no other MCC exclusions to keep it simple and appealing.

a standard spender upto 5L gets about 3% but high spenders will be getting about 4-5%. That should be sustainable considering HDFC swiggy and SBI cashback cards popularity.

 

[ARV]

Hi Team,

I'm working as a product manager for building a co-branded credit card. This community has been a great source of understanding consumers and what they expect out of their card. I'm posting this thread to get direct feedback from you all as to what features would you love to see in a RuPay credit card. Any and all suggestions are welcome, do let me know!

Thanks in advance!

Please partner with a bank who offer more than 1 card unlike Federal who issues only 1 card

 

[Astrella]

Just give me 1.5% statement credit on all UPI txns, make it LTF. all it needs to be to make it my main UPI card.

 

[RAMESH BABU N]

Just give me 1.5% statement credit on all UPI txns, make it LTF. all it needs to be to make it my main UPI card.

Use Junio/FabMoney pre-paid RuPay card n buy swiggy/FK/.... Vouchers at 2%-4% discount. Plus, get 1% CB on all spends (including these) into the card account.

 

[Astrella]

Use Junio/FabMoney pre-paid RuPay card n buy swiggy/FK/.... Vouchers at 2%-4% discount. Plus, get 1% CB on all spends (including these) into the card account.

can already get 10% on swiggy (airtel axis), FK 5% with millennia. I just want a no BS card for my UPI txns (currently using Neu infinity).