NEW YORK — Credit unions may soon have to start com-
peting with a bank program to offer some of their SEGs or sponsoring organizations' affinity card programs.
CardPartner.com is a program launched by the $8.9 billion UMB Bank, headquartered in Kansas City, helping small nonprofit groups that have generally been considered too small to start issuing cards. The program offers organizations a minimum of $50 per opened account and 0.3% of card interchange from each transaction.
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While some credit unions have offered affinity card programs to some of their SEGs or sponsoring organizations, the practice has not been widespread.
CardPartner's Visa Platinum cards also offer no annual fee, low introductory rates, low contract rate tied to the prime rate, no balance transfer fees for six months, 24-hour customer service emergency cash disbursement and card replacement, purchase security travel, and emergency assistance services, according to the bank.
There is currently no rewards program attached to the card, but the bank said one is coming.
Over a three-year period, an organization with 1,000 supporters that launched the program could expect to see between 60 and 180 of its supporters sign up for the card and make between just under $3,000 and just under $9,000 from card issuing and use.
The bank estimated that there may be as many as two million so-called micro-affinity groups that might be interested in starting a card program. Currently the bank has about 30, including a disability organization, a cancer support organization and an outdoor activity club.
The bank seeks to make the small groups profitable card centers by not preprinting batches of cards or spending money on expensive direct mail advertising. Instead CardPartner provides the groups software they can use to offer their supporters up to five card designs and lets the groups market the cards to their own members.
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