Charities to get their due credit
Alliance & Leicester is looking to give money-back card-holders a charity option
Sunday 07 September 1997
The proposal, by Alliance & Leicester's Money Back credit card, could increase competition among charity-linked credit cards, with other card companies coming under pressure to increase the donations they give on card-holders' spending.
The spending rebates of up to 2 per cent offered by the A&L card are noticeably more generous than those on most charity cards. Many holders of the A&L Money Back credit card can expect to earn rebates of pounds 50 or more this year. The same spending on a charity-linked credit card might trigger donations of just pounds 20.
A&L is assessing demand for the service following a suggestion in last week's edition of the Independent on Sunday. Assuming reasonable demand, the former building society plans to put an option in card literature for rebates to be paid direct to one of a limited choice of charities, which could include any permanent charitable foundation set up as a memorial to Diana, Princess of Wales. A&L said it favoured "humanitarian" charities although it would be guided by cardholders and the likelihood is it would offer a choice between a range of charities including third-world aid and conservation charities.
Existing holders of the A&L Money Back card are invited to call 0645 250 250 and to indicate whether they would be interested in the service and which charities they might want to support; people applying for the card on 0500 83 83 83 can also express an interest and name their favoured charities.
A&L's Money Back credit card has proved one of the most popular credit card launches of recent years. Since the spring it has attracted more than 160,000 people and the former society expects to pay at least pounds 5m in rebates in the card's first year.
The card has been particularly attractive to people who pay off their bills in full each month for the same reason that many of the people who sign up for charity-linked cards are full-payers: both offer "something for nothing", either for the individual or for a worthy cause.
The A&L card has no annual fee and the cash rebates of up to 2 per cent of spending can, in effect, be seen as a discount on purchases. The rebates are due to be paid out to cardholders in January in cheque form. As things stand, if cardholders want to pass the money on to a charity they will have to send off their own cheques to the charity; assuming A&L's move goes ahead this would be done automatically on their behalf. The idea is simply to make it easy for cardholders to be charitable: at present A&L expects most customers to pocket their rebates.
One executive in the charity-linked credit card market said of the effect of such a move: "Charities might well be coming back to us asking for a higher donation level." Charity credit cards are a small but growing section of the overall credit card market. While there are more than 1 million affinity cards in circulation that trigger donations to a chosen cause, only a proportion of these are for charities rather than, say, for clubs or universities. The typical deal is that when you sign up for a card, there is a one-off donation of pounds 5 to pounds 10. On top of this, every time you spend the card issuer makes a further donation equivalent to between 0.2 and 0.5 per cent of the value of your purchase, with most around 0.25 per cent.
The Co-operative Bank's Royal Society for Protection of Birds card has proved one of the most popular cards to date. The donation levels on this card are pounds 5 initially and 0.25 per cent thereafter, or 25p for every pounds 100 spent. On a spend of, say, pounds 2,500 a year, someone using this card would earn the RSPB pounds 6.25 a year on top of the initial pounds 5.
By comparison, the A&L Money Back card offers no initial benefit; rebates are directly linked to spending. For the rest of this year spending up to pounds 3,000 earns 1 per cent, and any spending over pounds 3,000 earns 2 per cent. From next year the rebates fall to 0.5 per cent and 1 per cent respectively. This year the same pounds 2,500 spent on the A&L card would earn a rebate of pounds 25, and pounds 12.50 in subsequent years. As things stand, the more someone spends the greater the difference between the A&L rebate and most charity- linked cards.
Assuming there is sufficient interest among card-holders, A&L hopes to be able to offer the charity option from early next year.
Simon Read: "Pension freedom is months away but if we don't act soon, the freedom may be to make an expensive mistake with our future"
30 January 2015 11:00 PM
The introduction of the new pension freedoms has been "alarmingly chaotic", reckons Nigel Green, chief executive of the financial consultancy deVere Group, He said this week: "The implementation of changes appears to be being rushed in a cynical attempt to woo older voters ahead of May's election."
30 January 2015 09:24 AM
There has been continued criticism of banks' delaying tactics and failure to find those affected by by the UK’s biggest-ever financial mis-selling scandal
26 January 2015 03:29 PM
Companies will be required to ask about health and lifestyle choices or marital status, to protect consumers who do not take up the government’s offer of the Pension Wise guidance guarantee service
23 January 2015 08:00 PM
I had dinner with the pensions minister Steve Webb this week. There was a wide-ranging discussion about the new pensions freedoms starting in April, and changes to the state pension. Crucially, I also got to ask Mr Webb whether he had any plans to have another look at the injustice that is frozen pensions.
23 January 2015 08:00 PM
23 January 2015 08:00 PM
While the health of the economy is not insignificant, Mark Dampier finds it incredibly unpredictable in terms of its impact on the stock market
21 January 2015 12:32 PM
A new free app is aimed at the three-fifths of Brits who have never switched supplier
20 January 2015 09:34 AM
Regulator’s investigation into the market found that around £160bn was held in easy access savings accounts that pay interest lower or equal to BoE base rate
17 January 2015 12:00 AM
Simon Read: Information is power. And it's in the wrong hands when people are cold-called by companies that know they're in debt
17 January 2015 12:00 AM
In debt? You're likely to be targeted by unscrupulous companies that hope to profit from your misfortune. They may try to pretend to be your friend by offering what they call "help" – but almost certainly that help will come with a cost and leave you worse off than you were before they got in touch.
17 January 2015 12:00 AM
In less than three months' time radical changes to pensions will take effect, providing investors with more freedom. Yet for those who prefer to make their own investment decisions, the choice of funds available is overwhelming. And an income drawdown account is also not particularly easy to manage.
15 January 2015 12:23 PM
The minimum amount for which you can be forced into bankruptcy is being raised from £750 to £5,000
Derek Pain: I'm cautious, but remain one of the few bulls in the market
Donald MacInnes: Who would want to be a Barbie girl in a non-Barbie world?
Mark Dampier: How to get an income now that savings are past the 'use by' date
Thousands of UK investors could lose out following collapse of Secured Energy Bonds
Bargain Hunter: Fly off for a winter break in France or Portugal for well under £100
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
Day In a Page
A minimnalist four-bedroom home designed to the highest spec, featuring glass walls and a kitchen space lit by a glass roof
Hibernate during winter and make your living during the summer at this busy guesthouse with panoramic sea views, in the village of Lynton
A four-bedroom penthouse next to the Tate with direct views of St Paul's from two floors of luxurious living space
A four-bedroom detached home surrounded by spacious gardens and woodland, close to New Pudsey
An 18th-century, three-bedroom home near Langstone Harbour built from ships beams with vaulted ceilings and wood burning stoves
A five-bedroom semi-detached home with a mix of period and modern features in a popular and convenient location
This five-bedroom red-brick beauty overlooks the village green and sits in just under two acres of land
A three-bedroom villa with self-contained flat, minutes from Lake Windermere
A deceptively spacious, beautifully presented Georgian home with 3000sq ft of living space and five reception rooms
A five-bedroom Victorian home with four receptions, superb gardens and paddock in Pembury
An eight-bedroom house on the south side of the The Green with cinema, wine cellars and summer house
This 17th century beauty is full of rustic cosiness, while the detached home office means you can also run a business
Four exclusive apartments in a Grade II-listed former medical school with 2,275 sq ft of living space and 18ft ceilings
A five-bedroom terraced house on the popular Peterborough Estate, ideally located for both Eel Brook Common and South Park
A state-of-the-art farm-building conversion on the former Cliveden Estate, with 11,420sq ft of internal space, cinema and wine cellar
A three-bedroom, 15th-century cottage with original features in the picturesque village of Sissinghurst
A six-bedroom terraced house with large south-facing roof terrace, cinema room and wine cellar
A new seven-bedroom home built in Queen Anne-style with swimming pool and parkland views in Mortimer
A listed, four-bedroom farmhouse in the rural hamlet of Rushall with detached barn, four acres of gardens and paddocks
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion