Take Charge- Managing Credit Card Costs Behind the Scenes
According to Paul Schell, vice president of consumer electronics and retail sales finance at GE Consumer Finance in Kettering, Ohio, there are good practices in place to help ensure retailers are getting the best deals. He says, "A good financing partner will have the ability to accept credit applications in a variety of ways. Ease of doing business is an important consideration when a retailer is choosing a lender for its consumer credit program." GE's Retail Sales Finance unit provides consumer credit services to retailers.
"Our specific services include private label credit products, credit program training for sales staff, rapid credit application evaluation and processing, cardholder marketing, marketing consultation, consumer database information, and point-of-sale promotional materials," says Schell.
He explains, "Today's consumer may carry multiple credit cards, so smart retailers should be able to accept several…It's important to note that retailers who promote their own label credit cards tend to create better customer loyalty and bigger initial sales. Private label credit programs can be used to convert shoppers to buyers through promotional credit offerings. They can lower the retailer's cost of tender and serve as an effective customer relationship management tool."