affinity card

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Credit card promoted under a sponsoring agreement between an organization and a card issuing bank. In exchange for making available its membership list, the sponsor receives some compensation from the issuing bank, usually part of issuer's net interest income. The issuer may waive annual fees for affinity cardholders, or even offer the card at a lower rate than ordinary bank cards. See also Co-Branded Card.

A type of credit card issued by a bank and a charitable organization whose logo appears on the card. Each time the card is used, a percentage of the transaction is donated to the organization.

Investopedia Says:
Although affinity cards may seem like a win-win-win for the bank, organization and cardholder, there are negatives as well. Affinity cards offer fewer of the perks (like warranty coverage) other cards do; they sometimes charge higher fees, and the amount donated to the charity (which is not tax deducible to the cardholder) is very small, often about .05%. Nevertheless, affinity cards are popular with consumers who like the idea of giving as they spend.

Note that affinity cards are distinguished from co-branded credit cards, which are issued by the bank and a business (e.g., retailer, airline) and offer personal benefits (e.g., discounts, points) to the cardholder.

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