Private label debit refers to a merchant-branded card or mobile payment app that utilizes an automated clearing house (ACH) to directly debit consumer checking accounts. Used in a closed-loop environment, private label debit offers secure transactions through PIN protection or tokenization.
Private label debit programs have become increasingly popular in the United States, totaling roughly $13 billion in payment value. Such programs are offered by well-known brands, including Target, Kroger, and Circle K, as a consumer loyalty strategy.
Companies such as ZipLine, First Data, and BIM Networks implement private label debit programs for such brands.
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Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.