The Affinity Credit Card Opportunity

Affinity credit cards are the fastest growing type of bank cards in America. And along with their success come many predictions of what lies ahead.

Forecasted growth of affinity cards

One such forecast comes from Betsy Bauer in the U.S. News & World Report. Betsy wrote, “Although these cards account for only about two percent of all credit cards, converts to this new form of painless philanthropy are coming so fast that by the end of the decade some experts predict bank credit cards without a cause will be a lost cause.”

Affinity credit cards are MasterCards and Visas issued by non-profit organizations. Organizations receive a portion of the revenue the cards generate.

Many experts predict the majority of bank credit cards issued in the future will be affinity cards. Initially, this sounds possible when considering their rapid growth and acceptance. Upon deliberation, a couple of questions come to mind.

Thousands of affinity card issuers

The first question concerns the 50,000 MasterCard and Visa issuers in the United States. There are thousands of large and desirable non-profit organizations who can issue affinity credit cards. Unfortunately, thousands of organizations aren’t enough to go around for tens-of-thousands of bank card issuers. What are the issuers that don’t land a non-profit organization’s affinity credit card going to do?

The next question deals with future bank card growth. Whenever a popular new product is initially offered there’s a rapid acceptance and growth period. Then the market reaches a saturation point where the growth slows and sometimes stagnates. 

The next credit card market boom

The second question: When affinity credit card growth slows, what’s the next boom area? The bank credit card industry’s future, and the salvation of many issuers, lies in an outgrowth of the affinity card market. An examination of the non-profit organization affinity market will reveal what the next bank card opportunity is.

People generally join a non-profit organization because it has a special meaning to them. Affinity credit cards are issued to capitalize upon this loyalty.

When a non-profit organization issues a bank card it usually does what’s necessary to get members to carry and cherish “The Card”. Organizations subtly pound “pride of the credit card” into members’ heads. One thing done is to make the credit card so attractive that it stands out in the wallet. That’s why many affinity cards carry a full color photo of the group’s favorite concept or love. This special card instantly draws the member’s attention and is therefore the bank card which is pulled out and proudly used.

Psychological motivation

Issuers need to realize most people are mentally, if not emotionally, attached to these special meaning cards. It’s important for issuers to keep in mind that because of this attachment, many people are saving their expired affinity credit cards.

Issuers expect organizations to create a loyal following for affinity cards. This is so members will renew their credit cards annually. Card issuers shouldn’t totally depend on organizations to build a following for cards. Issuers, on their own, should strive to form a strong user allegiance to their cards.

The way credit card issuers can create this loyalty is to make the card so interesting that cardholders look forward to getting the next one. Most issuers would be proud to have a card where the users are anxiously anticipating the next release. One way of achieving this is to change the picture on the card annually. Create a series of these special meaning cards – a series where the cardholder looks forward to owning each year’s new issue.

Other possible markets

A stumbling block of most institutions is thinking support for bank cards can only come from non-profit organizations. Interest comes from what a card represents, not whether the organization shows a profit or not. One example is the American Numismatic Association’s (ANA) proposed credit card.

The ANA is a non-profit organization with thousands of members. There’s support for their affinity credit card because the organization needs money and has loyal followers. But remember, most people join and support the ANA because of a love of numismatics!

Now examine the numismatic business, Coin World. Coin World is the world’s largest weekly numismatic publication. Most people read Coin World because of a love for coins. There are just as many, if not more, loyal Coin World subscribers as there are ANA members.

Saying a credit card can only be issued profitably to ANA members because it’s a non-profit organization is false. Coin World subscribers can have just as much enthusiasm for a credit card.

Coin World subscribers have a special interest and love for coins, just like ANA members. Transmute the subscribers’ interest and love of coins into enthusiasm for a credit card. This can be accomplished by issuing an annual design change card with pictures of classic numismatic rarities. There will be an interest in the card because it’s a limited edition, annual design change series with pictures of desired and treasured items.

The idea of promoting credit cards in series is easily seen when applied to collectors. Stamp, doll, plate or any collecting specialty can profit from the concept of a limited edition, annual design change series that can be saved.

Specialty cards for other groups

Remember though, series credit cards don’t have to be limited to only collectors. Any group of enthusiasts is a possible market: golfers, hunters, dog lovers, etc. 

A person doesn’t have to be a member of a non-profit organization to be an enthusiast and a prospect for an annual specialty credit card series. It’s the love and interest in the subject matter that makes for support. Then creating an interest and love in the enthusiast for the specialty credit card is up to the issuer.

Offsetting additional costs

A limited edition, annual design change, specialty card series has higher production costs than the two year standard credit card program. Here are just a few of the many ways issuers can offset the added expense:

  1. The specialty card has less marketing expenses since it’s focused on a specific group.
  2. Free publicity is obtainable for the issuer of a properly planned specialty card series.
  3. A properly designed and marketed specialty card will generate word-of- mouth advertising.
  4. A specialty card will pull in a larger percentage of applicants.
  5. Annual renewals will be maintained at a higher percentage.
  6. Extra revenue can be generated by selling special interest items exclusively to cardholders.
  7. An annual, limited edition, specialty card that offers related perks can charge a higher annual fee.

The extra expense in issuing an annual, limited edition, specialty card series is more than offset by the numerous marketing opportunities created.

The future of bank credit card issuers is in their own hands. Those who have foresight can move into the future with confidence. The future is now for bank credit card issuers who market their cards in series.

Copyright Greg Tunks 1988, Credit Card Collector

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Frequently asked questions

You can find out the value of old credit cards by checking how much similar cards sell for. There are several ways to do this.

The simplest way to determine the value of old credit cards is to ask an experienced collector. If you submit an inquiry via our contact form, we can connect you with an expert who can assist you and point out if there is anything rare or unusual in your collection.

Alternatively, you can become a member of the American Credit Card Collectors Society. Membership in our credit card collecting club provides access to resources and knowledgeable members who can help. Benefits of membership include access to a gallery containing thousands of cards with historical pricing information, and access to our entire collection of newsletters, from 1994 through the present day.

You can look at recent sales on auction sites, however, there are some considerations to keep in mind when doing this. Firstly, it’s important to look at selling prices, rather than asking prices. Selling prices are the prices people actually paid, while asking prices can be very different. Secondly, historical sales on some sites are only saved for 3 months, so you may not find something that exactly matches what you have. Thirdly, it is sometimes possible to see rare or unusual cards sell for lower prices than they should have because people do not understand their worth, the ads don't do justice to the card, they're listed in the wrong category, or any combination thereof.

There are always people in our club who are actively buying cards. Collectors tend to focus on a niche, like gas cards or retail cards, or they might focus on a slightly broader area, like bank cards or travel and entertainment cards. Many of the rarest or most unusual cards will exchange hands in private sales. Please contact us if you are thinking of selling your collection.

You can also sell your old credit cards on online marketplaces. You will get the highest price if you sell each of your cards individually, although this approach requires the most effort. At the opposite end of the effort scale would be selling all cards as a job lot, an approach which typically results in the lowest price on a per-card basis. Halfway between these two approaches would be to group cards into different categories and to sell these individual groups, e.g., BankAmericard, Master Charge, oil and gas, retail, and so on.

To join the club, visit the membership section and complete the registration form. You can pay by check or PayPal. We offer annual or lifetime memberships. If you have any questions please contact us via the form on our website.

Credit cards are more worthwhile collecting if they are rare, in good condition, have historical significance, or are associated with famous personalities or events. Valuable modern cards might include those that are difficult to obtain, such as American Express Centurion (a.k.a. ‘black’) cards, while older credit cards might include early independent bank cards, American Express, Diners Club, or BankAmericard (Visa) cards from the 50s/early 60s, or Master Charge (MasterCard) cards from the late 60s. Rare or unusual cards can also be sought after, such as those issued in small numbers, like small independent department stores or gas stations, or cards with appealing aesthetics.

Consulting with other collectors or experts in the club can provide valuable insights. Contact us for more information via the form on our website.

We do not offer an appraisal service in a traditional sense (such services are normally a paid service) but we can connect you with an expert who should be able to assist for free and point out anything rare or unusual in your collection. The simplest way to do this is to submit an inquiry via our contact form.

The American Credit Card Collectors Society accepts donations and is most grateful for any we receive. When donations happen, we strive to find good homes for cards where they will be looked after, matching cards with collectors who will appreciate them. The club may charge members a nominal fee for donated cards, and the proceeds are offset against the running costs of our club. We are a non-profit organization. Running costs include expenses like our convention and website hosting. Donations are most popular for people getting out of the hobby, or when someone has inherited a collection and doesn’t know what to do with it.

If you wish to donate your collection, please contact us via the contact form above.

American Credit Card Collectors Society