Investopedia

Continue to Site »

Affinity Card

Filed Under »
Dictionary Says

Definition of 'Affinity Card'

A type of credit card issued by a bank and a charitable organization whose logo appears on the card. Each time the card is used, a percentage of the transaction is donated to the organization.

Investopedia Says

Investopedia explains 'Affinity Card'

Although affinity cards may seem like a win-win-win for the bank, organization and cardholder, there are negatives as well. Affinity cards offer fewer of the perks (like warranty coverage) other cards do; they sometimes charge higher fees, and the amount donated to the charity (which is not tax deducible to the cardholder) is very small, often about .05%. Nevertheless, affinity cards are popular with consumers who like the idea of giving as they spend.

Note that affinity cards are distinguished from co-branded credit cards, which are issued by the bank and a business (e.g., retailer, airline) and offer personal benefits (e.g., discounts, points) to the cardholder.

Articles Of Interest

  1.

    Deducting Your Donations

    Generosity may be its own reward, but some charitable giving also provides personal tax benefits.

  2. How To Read Loan And Credit Card Agreements

    The devil is always in the details! Find out what you're signing yourself up for.

  3. Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.

  4. Cut Your Tax Bill With Donor-Advised Funds

    Beat the tax man come April 15 by investing in a charity-friendly fund.

  5. It Is Better To Give AND Receive

    You give to benefit others, but there can be perks for you too.

  6. What's On A Consumer Credit Report?

    A look at the various components and considerations that go into one's credit report and credit score.

  7. 7 Unconventional Ways Businesses Can Borrow Money

    Find out how your business can get the money it needs - even when the bank says "no".

  8. Taxable Rewards To Be Aware Of

    Find which benefits from reward programs count as income in the eyes of the IRS.

  9. Financial Solutions For Young Women

    Break through the stereotypes and find out how to manage your life to meet your needs.

  10. Bloated Budget? How To Trim The Fat

    Blood, sweat and tears should belong in the gym, but your money deserves some training time too.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center