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Credit cards are an important part of the retail industry. From American Express to Visa, customers prefer to keep their cash in their wallets and use their charge cards to pay for almost any purchase. Many people use their credit cards for convenience. Others may use it because they earn rewards. Some may even use it to build their credit. Whatever the case may be, credit cards assist and encourage people to spend money on a wide variety of purchases.

Store credit cards are no different. Virtually every retail chain store in existence offers their own store credit card. At Starbucks this morning, I saw an advertisement to get a Starbucks Visa and earn free coffee. Store credit cards give customers a way to spend money on one card in just one store. You wouldn't be able to use your JC Penney credit card at another department store. This encourages customers to spend money in a specific retail store, especially when the store offers special privileges and discounts to cardholders.

Store credit cards aren't just beneficial to the customer; they are also beneficial to the store. When holding a credit card for a specific retail store, customers are much more likely to shop at that store for what they are looking for what they want before going into any other store. This increases the potential for sales in said store. When given coupons, discounts, and other promotions and privileges, consumers are even more likely to go to the store where they are a cardholder. More customers mean more volume. More volume means more profit.

So, we have glossed over the benefits for the customers and the stores involved. What about the most important people involved? That is the sales associate, of course. The sales associate is the liaison between the credit card company and the customer. The sales associate offers the customer membership and provides details on all of the privileges that cardholders receive. It is the sales associate's job to entice the customer to open a credit card account, as well as to use it.

The sales associate is not forgotten in this process. The stores and banks involved often offer incentives to sales associates that open new credit card accounts for customers. For example, a sales associate receives $2 for every credit card application processed. If an associate works an 8 hour day and processes 2 credit card applications, that averages out to an extra 50 cents per hour. So, instead of earning $7.50 per hour, it averages out to $8 per hour. Plus, the amount of credit card applications that a sales associate can process is unlimited.

Furthermore, there are sometimes extra incentives to associates who process a certain number of credit card applications. A sales associate is given a goal for the week (or day or month). Once the goal is reached, the associate receives that incentive. For example, if you process 2 credit cards in one week, your name gets entered into a drawing for $500 cash. Wouldn't that be a nice addition to your monthly paycheck?

As you can see, this is a winning situation for everyone involved. The customers are happy because they receive special discounts, promotions and other privileges. The stores are happy because they gain more business. The sales associates are happy because they receive incentives for simply processing an application. Happy people mean a terrific shopping experience.

Learn more about this author, Candice Cain.
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