LUBBOCK, Texas – NCUA yesterday said it approved a program proposed by Texas Tech FCU to allow students, faculty and alumni of Texas Tech University to buy gift cards at the credit union to finance millions of dollars of football tickets, refreshments and booster merchandise.
In a legal opinion letter made public yesterday, NCUA said “it is within the FCU’s incidental powers to offer this financial service to the issuer of the gift card if the issuer is a member of the FCU.” The University is both the sponsor and a member of the credit union.
“The athletic department at the University contacted us and asked us if we could do it,” Chris Hutson, chief financial officer of the $52 million credit union told The Credit Union Journal yesterday.
Under the plan, the credit union would receive funds electronically from the purchaser on behalf of the athletic department into an account the athletic department will maintain at the credit union. Essentially, the credit union will receive funds on behalf of its member.
The co-branded Visa gift cards would be sold in denominations up to $1,000 and would bear the Masked-Rider mascot of the Texas Tech Red Raiders as well as the credit union’s logo, said Hutson.
The purpose of the program is to help facilitate the credit union’s long-standing relationship with its sponsor, where the credit union is based, he said. The credit union will not earn any money from the program.
The program will be conducted through TNB Card Services, a unit of credit union-owned Town North Bank.
