Alliance Data Systems Corp. of Dallas said Thursday that it has agreed to issue private-label credit cards for PD Financial Corp., a Los Angeles catalog and Web retailer that uses the brand name PeachDirect.
PD Financial, whose slogan is "making luxury affordable," sells electronics, jewelry, and watches, among other items, to consumers who sign up for monthly installment plans.
Last year the retailer had sales of $200 million. In the fall PD Financial plans to change its brand name to Venue.
The cards issued by Alliance Data will have a rewards program designed to encourage people to make repeat purchases from PD Financial.
Alliance Data will handle account acquisition and activation; receivables funding; card authorization; private-label credit card issuance; statement generation; remittance processing; customer service functions; and marketing tasks.
In a press release, Ron Drori, PD Financial's chief executive officer, said it picked Alliance Data to run its card program "not only for their retail and credit expertise, but for their sophisticated analytics and extensive marketing insights."
Ivan Szeftel, the president of Alliance Data's retail services unit, said in the release: "We will leverage our extensive multichannel retail expertise and tools to help them cultivate strong customer relationships and reinforce their new brand, Venue. Together, we will drive their sales."
Alliance Data was the fourth-largest issuer of private-label credit cards in 2006, the most recent period for which rankings are available, according to payment card industry newsletter The Nilson Report.
It manages the credit card businesses of dozens of retailers, including Sportsman's Guide, Williams-Sonoma, and Orchard Supply Hardware.
