In exchange for potential donations and the mass exposure that a bank's marketing power offers, charities turn over their mailing lists. It's an opportunity for a bank to get access to millions of individuals who could be cardholders. First USA stepped into his territory. We were not about to allow them to come into our marketplace and start poking around. Banks like affinity card customers because they tend to be loyal, preferring to stick with their cause rather than switch to a card with a lower rate.
Retention is a big factor.
Jamieson says banks also take fewer losses among the charitable set. Affinity customers produce lower chargeoffs than the industry average. For consumers who pay their bills in full each month, affinity cards can be a fun, convenient way to add a little altruism to their everyday spending. This is one of those win-win situations. Bankrate Inc. All rights reserved.