Alliance Data Systems has signed a five-year agreement with Trek Bicycle Corporation. Under terms of the agreement, Alliance Data will provide a turnkey private label credit card solution that is available to Trek's dealer base of 2,300 merchants nationwide. Alliance stated that Trek boasts an estimated $1.4 billion in annual retail sales…
Alliance Data will provide Trek with the following private label credit card services: account acquisition and activation, receivables funding, card authorization, card issuance, statement generation, marketing services, remittance processing, and customer service functions. Trek and its dealers will also benefit from a proprietary Alliance product, Universal Web Solution(TM), that facilitates the processing of credit applications within 30 seconds, streamlines the daily settlement of transactions to dealers, and assists in the creation of customized reporting and customer service functions — all without requiring dealers to purchase additional POS equipment.
“Alliance Data's unique program offering will help our dealer base increase sales by delivering value-added services that improve the customer's experience with his or her local Trek dealer,” said David Smith, director of Financial Services at Trek Bicycle Corp. “We were particularly impressed with Alliance Data's keen understanding of the retail industry, coupled with their ability to create a flexible, fully integrated credit program that didn't require our dealers to invest additional capital in POS/software infrastructure in order to implement the program. This program will also enable individual dealers to communicate with their customers via customized marketing programs designed to bolster incremental sales and repeat business.”
Ivan Szeftel, president, Retail Credit Services, Alliance Data Systems, said, “We are pleased that Trek selected Alliance Data to provide this critical service for its business. The private label credit card program we developed for Trek to use with its dealers is a 'first' for Alliance Data and is reflective of our commitment to provide innovative credit programs for retailers. This private label credit card program will help reinforce Trek's brand positioning among biking enthusiasts and capture additional credit sales — all while strengthening the relationship between local dealers and their customers.”
