Credit Card Rewards for Charity

The next time that your wife (husband) buys a new pair of shoes, don't be surprised if she confesses that she did it for charity. Holders of credit cards that used to earn frequent-flier miles can now arrange to have the cash-equivalent of those benefits paid to the charities of their choice. According to Ron Lieber's article in the Wall Street Journal, these benefits are provided in addition to such "freebies" as frequent-flyer miles.To join the program, cardholders must register their credit and debit cards on Tricordia.com. Tricordia arranges with retailers, such as Expedia Inc., Gap.com, and Pep Boys, to pass along a percentage of cardholders' purchases to charities of their choice. For example, Tricordia passes along 3 percent of the cardholder's hotel purchases. Half of that fee goes to Tricordia and the other half to the charity chosen by the consumer. Igive.com and Greatergood.com have developed similar programs. Other loyalty programs give refunds directly to the cardholders, and some establish funds for college tuition or other purposes. Alternatively, citizens of a town could team up to pool their refunds to fund a playground or teen center.