|
Charity credit cards raise donations for a named charity every time a cardholder spends on the card, and also sometimes when the account is opened and each year an account remains open.
If you have a charity credit card you may wonder where the actual money comes from to fund the donations, particularly if you repay your balance in full each month and therefore do not have to pay any interest to the credit card company.
Charity credit card donations are paid for by the credit card issuer – the money used to pay the donations comes from the profits made by the issuing bank or building society running the charity credit card.
Whenever you use a credit card to pay for goods or services from a retailer or service provider, the company has to pay a fee to your credit card company for processing the payment.
This fee is often hidden as the retailer covers the charges by raising the price of all goods and services accordingly, however sometimes you may come across retailers who charge extra if you choose to pay by credit card – this keeps overall prices lower, but covers their cost of accepting credit card payments.
So even if you always repay your balance in full and never pay any interest or fees to the bank or building society who issues your charity credit card, the issuing bank still makes a profit each time you use the card – and a portion of this profit can be used to fund the charity donations.
Charity credit cards
Charity credit cards have become increasingly popular over the years; with many consumers who want to give a little back using charity credit cards to enjoy the convenience and ease of credit card spending whilst contributing to a good cause without having to take any further action.
Some things to remember about charity credit cards include:
- The more you spend on the card the more money gets donated to your chosen charity.
- You will benefit most from one of these cards if you repay the balance on your card in full each month.
- The money that is donated to charity comes from the profits generated by the issuing bank or building society running the charity credit card.
How much will be donated to charity?
In the same way as rewards based credit cards do, charity credit cards can vary in terms of the amount donated per pound spent on the card.
This is something that you should check when you compare charity credit cards.
You will also find that some credit card companies will make a lump sum donation to the charity when you successfully apply for a charity credit card and open your account, and often each year that you remain a cardholder too.
There are many different charity credit cards to choose from these days from a wide range of credit card providers. This includes medical research companies, cancer charities, animal charities, and more.
All you have to do is spend on your card in the normal way, and the credit card company will deal with making the donations.
Compare charity credit cards
 Back to charity FAQs
Back to FAQs & Guides
|
