cardlinked

Cardlinked refers to a class of payments marketing in which promotions, discounts, or rewards are directly tied to a consumer’s payment card. When a cardholder with an enrolled card makes a purchase at a participating merchant, the offer is automatically recognized and redeemed at the point of sale, without the need to present coupons or loyalty cards.

How it works: Merchants, banks, or card networks partner through a card-linked platform. Transaction data from the card is tokenized and matched to enrolled offers. If the purchase meets offer criteria, the discount is applied and the merchant is credited for the sale, while the consumer receives the benefit either as a statement credit, a reduced price, or a reward in the platform. Enrollment is typically opt-in and tied to a specific card.

History and scope: Card-linked offers have roots in early 2010s loyalty programs and card networks. Companies such as Cardlytics and various banks and networks have deployed CLO programs to blend marketing with transaction data. The approach has expanded across retail and hospitality sectors and has influenced broader loyalty strategies.

Benefits and use cases: For merchants, card-linked promotions provide measurable ROI and access to transaction-level data. For banks, they can increase card usage and retention. Consumers gain convenient, targeted rewards without additional cards or steps.

Limitations and concerns: Privacy and data sharing are prominent considerations; participation often requires opt-in and clear disclosure. Effectiveness depends on enrollment rates, merchant participation, and integration with POS systems. Security relies on tokenization and compliance with applicable data protection standards.