A co-branded credit card is sponsored by both the issuing bank and a retail organization such as a department store or an airline. These types of cards may give you various benefits such as discounts or free merchandise from the sponsoring organization based on how much you use your credit card and other terms.
The most common type of co-branded credit cards are those issued by banks in partnership with other retail companies. For example, General Motors, Shopper's Drug Mart, and Starbucks all offer co-branded credit cards where their names appear on the card with the name of the issuing bank. Retailers often form these partnerships to attract clients by offering special shopping incentives if you use the card. Many of these cards, especially those affiliated with airlines, charge high annual fees because of their popularity among consumers.
A payment card issued by a bank or building society in partnership with a non-financial institution (usually one which has a well-known brand name), bearing the brand logo of both. The non-financial institution offers certain benefits to cardholders, often using a points system.