[some_random]

What do you mean when you say these companies are offering credit cards? Aren't those cards still managed by Visa, Mastercard, AMEX, or Discover? My understanding is that they're just running the rewards system and putting their name on the card.

[lotsofpulp]

Visa and Mastercard just operate the network, they do not control the funds or take on any credit risk. Amex and Discover do operate as lenders, and also operate the network.

[some_random]

Right, but what's the risk to the financial system paulusthe was talking about above in an airline partnering with Chase and Mastercard to to offer a credit card? The lender in all cases isn't going to be the airline, right?

[lotsofpulp]

For sure, the airline is never the lender on a branded credit card, and takes in no credit risk. It will be a licensed a bank.