An affinity card is a type of credit card issued by a bank that carries the logo of an organization with a social purpose, such as an association, foundation, sports club, or charity. (For example, Fenerbahce Bonus)
In structure, an affinity card is similar to a co-branded credit card. The only difference is that the credit card is issued through banks for social clubs and associations instead of a commercial organization.
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In addition to providing an advantage to the cardholder, these cards also ensure that, based on transactions made with the credit card, a certain amount is transferred to the institution or organization that the cardholder is a member of or feels an emotional connection to.
Affinity card programs are used for organizations with a social purpose, such as associations, foundations, sports clubs, or charities.
The purpose of affinity credit cards is to help generate revenue, build loyalty, and spread the organization's message.
When applying for the credit card, one should make sure of the agreement between the credit card and the company, and that the transactions made genuinely benefit the organization.
What Are the Features of an Affinity Credit Card?
- Using an affinity credit card is no different from using a standard credit card. Statement issuance for spending made with the credit card and payment of the card debt work the same way as with standard credit cards.
- Other criteria should also be considered when applying for an affinity card. (How much is the annual fee? What are the credit card point earning rates? How much is the lost/stolen card replacement fee? etc.)
- In addition to the credit card's features, the revenue that the supported organization will earn from credit card usage is very important. (For example, sending 1% of the transaction amount to the supported organization, transferring the annual card fee to the supported organization, etc.)
- Affinity credit cards tend to carry higher interest rates than other credit cards. To avoid extra interest charges, it is important to pay the card debt in full and on time.
- Affinity credit cards may offer a rewards program to encourage cardholders to use the card. The rewards program can be an incentive to use the credit card. (For example, a 10% discount on purchases made at Fenerium with the Fenerbahce Bonus card)
What Are the Risks of Using an Affinity Credit Card?
There are some risks to getting an affinity credit card. If the bank issuing the credit card and the affiliated organization end their partnership, the credit card may be canceled. In this case, all accumulated points may be reset to zero, and you may be prevented from making transactions with the credit card.
