Affinity cards are credit cards co-branded with a nonprofit organization. The bank will give the charity a certain percentage of the purchase price every time the card is used. Other groups can also use Affinity cards, such as alum associations, alum teams, and professional organizations.

Affinity cards, often called charity credit cards, are a simple method for consumers to demonstrate their support for a preferred nonprofit organization while providing financial assistance to that organization. Since the bank is footing the bill for the contribution, the cardholder will not see any additional charges.

Affinity Card Mechanisms

Banks issue affinity cards and the cardholder can choose from a list of charities. Groups may contact their members or contributors to inform them about the availability of affinity cards to increase engagement and contributions.

Some possible examples are sororities, philanthropic sports clubs, and scholarly associations. Alum associations are not uncommon to provide their members with unique perks, such as an affinity card.

Depending on the group's mission, it may outline how it plans to use the little donations made at checkout. One environmental group may, for instance, promise to plant a tree for every year the card is used.

Features

Like any other credit card, an affinity card may be used everywhere Visa is accepted. Based on the credit card and your creditworthiness, a credit card company extends you a line of credit. Then, you must pay at least the minimum payment due on your credit card amount each month. In the same way, as you would with any other credit card, payments are sent to the card's issuing bank.

Affinity credit cards are no different from any other type of credit card in terms of the considerations you should provide while making your decision. What exactly is the cost each year? So, how much is the APR? Just what do the credit card perks consist of? Is there a price for making an international payment?

Examine not just the attributes of the credit card but also the percentage of the purchase price the organization keeps as its cut. Just because a company offers a credit card you believe in doesn't mean it's the best option for you.

Motives To Use Affinity Cards

Although the total funds raised by affinity cards may be modest, the idea of a passive revenue stream entices many organizations. Since affinity cards may only generate a small sum of money for groups, this is a supplementary method of funding their activities.

When customers pay using affinity cards, it usually doesn't affect business. The total amount paid is not often lowered because of fees and contributions. In addition to the tiny percentage given at each transaction, the organization may get a one-time, flat-rate payment of $1 or more for each new signup for an affinity card.

Affinity cards' perks may not be as generous as those provided by other programs, but the cardholder may get cash back rather than points for their expenditures. Some credit card holders value the option to display a logo representing a cause or organization they believe in above all others.

The Affinity Card: Some Examples

A variety of speciality credit cards are available from the Bank of Montreal. Customers can select from various charitable categories, including animal protection, the arts and culture, conservation, education, medical research, and more.

Suppose you have a British Columbia SPCA Mastercard, for instance, every time you use it to make a purchase. In that case, the SPCA will receive a gift (at no extra cost to you) to help them continue their important work protecting and caring for animals.

The funds will be used to treat stray animals and rehabilitate damaged wildlife, hoping they can be adopted into loving homes. Credit card customers are rewarded with perks such as cash rebates, bonus miles, and discounts on flights and hotels.

Options For Making Donations to Charity

An affinity credit card is only one method to show your support for a particular group. You can directly contribute to the organization according to your means and desired impact every year. Sometimes the money raised via an affinity credit card doesn't go as far as a direct gift. Whereas purchases made with an affinity credit card are not tax deductible, donations made directly to nonprofits may be.

Use of an Affinity Credit Card May Put You at Risk

The benefits of using an affinity credit card may not outweigh the hazards. Your credit card might be cancelled if your credit card company and its affiliate stop their business relationship. In that situation, you risk losing access to the credit card's rewards program and the ability to make new purchases. In most cases, you can settle your debt according to the original conditions.