Spiegel Card Rebates Can Go To War on Breast Cancer

A cobranding and affinity partnership between First Consumers National Bank and Spiegel Inc. would give cardholders an easy way to contribute to breast cancer research.

The Spiegel MasterCard will not only offer rebates to cardholders, but will also provide funds for the National Alliance of Breast Cancer Organizations.

The dual approach is emblematic of the blurring line between cobranding and affinity credit cards as issuers search for ways to offer cardholders something extra.

In June First USA started marketing a Rodeo Drive Visa card that gives purchase rewards and donates a percentage of sales to Los Angeles-area charities.

One way for issuers to stand out in the marketplace is to offer a range of benefits-financial, emotional, or psychological-that consumers can choose from, said Les Dinkin, managing partner, NBW Consulting, Westport, Conn.

"Spiegel's customer base is women in their early 40s who care about breast cancer, " said Beth Horowitz, vice president, affinity and cobrand marketing for Purchase, N.Y.-based MasterCard.

Ms. Horowitz said consumers want convenient ways to give to causes they feel deeply about.

"From time to time ... we will see issuers offering a combination of cobrand and affinity, when groups like Spiegel are focused on a very defined audience," said Stephen D. Drees, president of Strategic Marketing Services in Westborough, Mass.

But the more diverse the customer base, the more difficult it is to find a single charity meaningful to the group, Mr. Drees said.

The standard card Spiegel MasterCard has no annual fee and an introductory rate of 6.9%. That jumps next spring to 9.49% plus prime, for a total 17.99%.

Cardholders will earn a 5% rebate on each Spiegel purchase and a 1% rebate on other purchases. Rebates can be applied to Spiegel merchandise or donated to the cancer charity, but are not tax-deductible.

Cardholders will also receive a 15% discount on their first catalogue order using the card.

Each card will bear the logos of Spiegel, the National Alliance of Breast Cancer Organizations, and the-pink ribbon symbol for breast cancer awareness.

First Consumers National, based in Beaverton, Ore., also issues MasterCards for Spiegel affiliates Eddie Bauer and Newport News that offer rebates to cardholders.

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