Accepting private label credit cards with Shopify Payments
Private label credit cards (PLCCs) are store-branded credit cards that can be used only at specific retailers. Common examples include store charge cards issued by banks like Synchrony, Citi, or Bread/Comenity on behalf of a retailer.
PLCCs differ from co-branded cards, which Shopify Payments can process directly. To accept PLCCs, you must have a dedicated payments app or payments extension. The right type of payments app or payments extension for your business depends on your card program's security requirements.
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Shopify Payments and private label credit cards
Shopify Payments processes cards through global payment networks such as Visa and Mastercard. Private label credit cards operate on proprietary networks rather than global networks, and Shopify Payments can't process them directly. A proprietary payment network is a private system where a single company handles every part of a transaction, from issuing the card to processing the payment, without using outside banks.
If a customer attempts to use a PLCC in the standard credit card field at checkout with Shopify Payments, then the transaction fails.
To accept private label credit cards, you need to add a dedicated payment extension so the option to pay with these cards is displayed on your store's checkout.
Co-branded cards and private label cards
Co-branded cards and private label cards are similar but operate in different ways. Co-branded cards operate on global networks like Visa or Mastercard, so Shopify Payments can process them directly. Private label cards operate on proprietary networks, so they require a dedicated payment extension.
Co-branded cards
Co-branded cards display both a retailer's brand and a major card network logo, such as Visa or Mastercard. These cards can be used anywhere the card network is accepted, not just at the issuing retailer.
Shopify Payments processes co-branded cards directly because they operate on standard global networks and no payment extension or redirect is required. Co-branded cards are typically aimed at purchases that have a high average order value (AOV) and might require financing, such as furniture or music equipment.
Private label cards
Private label cards are issued by a retailer, often in collaboration with a financial institution, and can typically be used only at that retailer's locations or website. These cards are considered "closed loop" because they operate on proprietary networks rather than global card networks.
Because private label cards don't operate on major networks, Shopify Payments can't process them directly. To accept these cards, you need to add a dedicated payment extension. Depending on the card program's security requirements, this might involve payment card industry (PCI) compliance for bank-supported cards, or a simpler integration for internal loyalty programs.
Considerations for using private label cards
Private label credit cards aren't compatible with Shopify POS. PLCCs rely on payment extensions, and payment extensions aren't currently supported for in-person transactions.
If you need to accept PLCCs for in-store purchases, then you need to use a separate payment terminal provided by your PLCC issuer.
Options for accepting PLCCs
Depending on your card program's security requirements and the checkout experience that you want to offer, you have multiple options for accepting PLCCs. Development of an app, payments extension, or custom credit card payments extension can take different amounts of time. Consult the developer of the app or payments extension for information on development time.
Pre-built apps
If the bank that issues your PLCC offers a Shopify app, then you can install the app directly from the Shopify App Store. Learn more about activating payment methods.
This option offers the following benefits:
- Fastest setup with self-serve installation
- No custom development required
- Timeline depends on the bank's internal process to provision credentials
Using an offsite payments extension
If your bank doesn't offer a pre-built Shopify app, then you can work with a developer or agency to build a custom payment app. An offsite payment extension is best for banks that require a hosted payment page. If you choose this option, then your customer is redirected to your bank's page to complete payment, and then returns to your store.
This option has a lower security barrier because Shopify doesn't handle encrypted card data.
Learn more about building an offsite payments extension.
Custom credit card payment extension
A custom credit card payment extension is best for bank-supported cards when you want a seamless checkout experience. If you choose this option, then your customer selects your store card and enters their card details directly in the Shopify checkout.
This option has a high security barrier that requires PCI compliance and encrypted data handling. You must provide proof of PCI compliance before you can access this extension type.
Learn more about building custom credit card payment extensions.
Alternative payment extension
An alternative payments extension is best for internal programs such as Net-30 accounts or loyalty cards that don't require banking-level security. If you choose this option, then your customer selects your payment option and enters an account or ID number in the Shopify checkout.
This option has a lower security barrier with no PCI compliance requirement and the extension sends data unencrypted.
Learn more about building alternative payment extensions.
Choose the right option
Review the following considerations when choosing how to accept PLCCs:
- Pre-built apps: If your bank offers a Shopify app, then use the pre-built option for the fastest setup.
- Bank requires hosted page: If your bank requires customers to enter card details on their own secure page, then use an offsite payment extension.
- Seamless checkout required: If you need customers to enter card details without leaving the Shopify checkout and your program is PCI compliant, then use a custom credit card payment extension.
- Internal loyalty or account program: If you're accepting internal account numbers that don't require bank-level security, then use an alternative payment extension.