Lillian Vernon debuts cobranded credit card

Who says you can’t teach an old dog new tricks? For the first time in the venerable company’s history, Lillian Vernon Corp. is launching a cobranded credit card.

Under the terms of the five-year agreement, Direct Merchants Credit Card Bank, a subsidiary of Minneapolis-based Metris Cos., will be the issuer of the Lillian Vernon MasterCard. Premiering in October, the card will be part of a loyalty program that will allow members to earn rewards for purchases made with their card. The rewards will be redeemable for Lillian Vernon gift certificates and other Lillian Vernon-related cardholder benefits and promotions.

“It expands the offer to buy,” explains Lillian Vernon president Kevin Greene. “Having a cobranded credit card will entice customers to increase their buying frequency and create more loyalty with the brand.”

Unlike private-label credit-card deals by companies such as Spiegel and Fingerhut, where the marketer assumed the risk of collecting receivable, with the cobranded card Rye, NY-based Lillian Vernon does not assume the risk of collecting from truant customers. Rather, that responsibility falls on credit-card issuer MasterCard.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.