Affinity Card – Benefits and Examples

What Is an Affinity Card?

Affinity credit cards are a form of a branded credit cards. In some cases, the affinity card is hosted by a bank, whereas in others, the affinity card is from a financial institution attached to the charity organization.

An affinity credit card is designed to raise funds for a charitable organization and at the same time provide the owner with promotional and rewards benefits that can be used within that particular company or industry.

Affinity cards are issued and branded by credit card companies and nonprofit organizations and can be used just like a normal credit card to make purchases. An affinity card is tool organizations use to raise money for their cause while rewarding the people who support them. They are not an expense; they are an investment in your favorite charity.

Affinity cards extend your reach to your customers—and your marketing to their shoppers. Banks can increase affinity card usage and loyalty with reinvention rewards that provide great value to the marketplace at a low cost.

How Affinity Cards Work?

Affinity cards are a marketing concept where a financial institution issues credit cards to its customers and allows them to choose which nonprofits they wish to donate money to. The bank then transfers a portion of the annual fee the customer pays to the selected charities.

Affinity cards are available to the general public intending to support charities or political candidates. These cards are often made available to organizations or groups of people who have common interests, careers, jobs, etc.

An affinity card allows consumers to support a charity or organization of their choice with each purchase they make. The cardholder chooses the organization they wish to support, and the money spent using the card is evenly dispersed between the organization and the retailer.

These cards help worthy causes in your community to raise much-needed funds without the hassle of special events or fundraising activities.

Benefits of Affinity Cards

The benefits provided by affinity cards range from discounts and rewards to special services and upgrades. Affinity cards are marketing tools that provide an alternative method of fundraising. They provide no-cost promotional tools to support your specific cause, organization, or company. Affinity cards are meant to generate enough funds for organizations to sustain their day-to-day operations.
Affinity cards are made specifically for business. These products are integrated, cost-effective, and most importantly, they can help raise funds quickly.

Affinity cards provide a way for businesses and organizations to raise money through the buying power of their customers, employees, and members. A flat-rate donation is collected as new signups join as well as on each transaction.

Though affinity credit cards may not be as beneficial as other reward cards, they offer the opportunity to purchase merchandise, utilize services, and help a cause or group you support. buying power of their customers, employees, and members. A flat-rate donation is collected as new signups join as well as on each transaction.

Though affinity credit cards may not be as beneficial as other reward cards, they offer the opportunity to purchase merchandise, utilize services, and help a cause or group you support. The ability to personalize your card with the logo from a favorite cause or group is also a bonus.

Special Considerations

While affinity cards offer many perks, they can also potentially offer fewer perks than other credit cards. Before you sign up for one, make sure you understand the terms and conditions that apply to this type of card first.

Your donations may be limited or even terminated if you are not careful. Also, if you try to donate more than $1000 in a week, you may be flagged for inquiries from companies looking for information about your donation history.

It takes some work to avoid these concerns, but the alternative—making smaller donations on regular occasions—can seem much more convenient at the time.

Examples of Affinity Cards

The Bank of Montreal offers two types of affinity credit cards: general and business. The general card is good for Canadians 18 years of age and older and provides money to friends and family who fall into categories that could be considered low income. The business card is good for entrepreneurs and owners of small businesses.​ 

The Bank of Montreal offers a wide range of affinity credit cards. Account-holders can choose from cards that support pet adoption, homeownership, automobile purchases, and air travel.

Bank of America issues the Susan G. Komen Cash Rewards Visa credit card. This credit card donates 0.08% on every purchase made on the card to the Susan G. Komen Foundation to fight breast cancer. These cards from the American Cancer Society offer a great low-interest rate, a year-end cash bonus, and cashback for purchases.

Key Takeaways

  • Affinity credit cards are a form of a branded credit cards.
  • An affinity credit card is designed to raise funds for a charitable organization and at the same time provide the owner with promotional and rewards benefits that can be used within that particular company or industry.
  • The benefits provided by affinity cards range from discounts and rewards to special services and upgrades.

  • Affinity cards are marketing tools that provide an alternative method of fundraising. They provide no-cost promotional tools to support your specific cause, organization, or company.