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Business Definition for: affinity card
Dictionary of Banking Terms
affinity card

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
Related Terms:
co-branded card

Visa or MasterCard credit card jointly sponsored by a bank and retail merchant, such as a department store. Co-branded cards can be issued at less cost than conventional retail private label cards, and give issuing banks access to new customers. Cardholders may be given incentives, such as discounts on merchandise, rebates, or discounts off purchases. A co-branded card has a tie-in with a specific merchant rather than an association or professional group. It also can be used at other merchants. Contrast with affinity card

Referring Terms:
marketing
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