Credit card scheme gives charities up to 15 per cent cashback on retail purchases

Tuxedo Money Solutions launches its 'spend and reward' scheme with retailers including B&Q, Comet and Halfords

Tuxedo credit card
Tuxedo credit card

- This story was clarified on 7 November; please see final paragraph

A financial services firm has launched a credit card scheme that allows charities to claim up to 15 per cent cashback on purchases made by supporters at participating retailers.

Under Tuxedo Money Solution’s spend and reward card scheme, charities issue supporters with prepaid credit cards branded with their logo. Supporters then pay money onto their cards and the charity receives between 5 and 15 per cent of the purchase price when they use the card to pay for goods at participating outlets.

The scheme also gives the cardholder the option of keeping some of the cashback reward themselves.

Tuxedo says that the percentage paid is higher than the traditional rate of between 0.5 per cent and 1 per cent that most charity credit cards pay.

Retailers that have agreed to take part so far include B&Q, Comet, Halfords, M&S and Sainsbury’s.

There is no cost to the charity or cardholder when the card is used to buy goods. Instead, the retailer pays fees to its bank to accept cards and some of the fees are shared with Tuxedo to cover its processing and administration costs.

The Apprenticeship Trust, a community interest company that helps young people to find employment, is already using the prepayment card. Under the scheme, apprentices are provided with a credit card that earns cashback for the charity.

The firm said in a statement: "Cashbacks can be used to incentivise consumers to keep loading and using their card, therefore earning benefits for themselves as well as raising funds for the organisation."

- The original release described the card as a "prepaid credit card". It is in fact a prepaid MasterCard or Visa card that does not allow the cardholder to purchase using credit.      

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert Hub

Insurance advice from Markel

Cyber and data security - how prepared is your charity?

With a 35 per cent rise in instances of data breaches in Q2 and Q3 last year, charities must take cyber security seriously

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now