SOURCE: Charity Charge PBC

May 17, 2017 11:13 ET

Billions in Breakage - How 31% of Credit Cardholders Can Take Charge of their Unused Rewards and Do Some Good in the Process

AUSTIN, TX--(Marketwired - May 17, 2017) - In the retail and payments industry, "breakage" is a term merchants use to describe the unredeemed value that consumers hold in gift cards, airline miles and other "rewards" schemes. According to Bankrate's recent Money Pulse Survey, an astonishing 31% of credit cardholders -- totaling over 60 million consumers -- never redeem their credit card reward points each year. The points expire and annually generate over $16 billion in breakage that goes back to pad the profits of credit card issuers. These financial institutions "bank" on their cardholders not using their earned rewards -- pun completely intended! -- but one credit card company is looking to disrupt the reward model to allow consumers to take charge of their breakage value.

Enter Charity Charge, a Public Benefit Corporation out of Austin, Texas, that has partnered with MasterCard and Commerce Bank to provide a solution to this pervasive problem in the financial industry preying on consumers. The Charity Charge World MasterCard has no annual fee and empowers cardholders to earn rewards without the hassle by offering a foolproof system to ensure the value is automatically redeemed to benefit both the cardholder and up to three charities of their choice.

Upending the status quo rewards model, Charity Charge turns credit cardholders into charitable donors by contributing 1% cash back on their everyday purchases to a cause. Cardholders support with every swipe in the form of an automatic tax deductible donation so nonprofits profit instead of the financial institutions counting on cardholder breakage.

Since their launch last June, Charity Charge cardholders have already racked up nearly $1 million in total spending resulting in almost $10,000 in direct donations to local and national nonprofits. This proves credit cardholders are willing to donate their cash back to causes they care about, instead of relinquishing their earned rewards in breakage to the bank, if given the chance.

"Consumers are tired of the system profiting from their spending. With Charity Charge, we help everyday people who use their credit cards for everyday spending support causes they care about with every swipe. We believe giving is better than receiving and it's clear our cardholders do too!" - Stephen Garten, Charity Charge Founder & CEO

By offering consumers all of the perks of a World MasterCard, at no annual fee, Charity Charge should appeal to the 31% of the population leaving their points and their dollars on the table for the financial system to pick up. The fact that they're also maximizing profits to nonprofits by revolutionizing the rewards model speaks to 'redemption' beyond dollars, too. Charity Charge should appeal not only to consumers' wallets but also their hearts.

To celebrate the million-dollar milestone, the millennial led startup today announced they will be doubling that impact with an additional $20,000 to nonprofits in the form of a matching gift incentive with the Charity Charge Challenge -- open to any 501c3 nonprofit or K-12 school in the US in good standing with the IRS. To find out how you can become a part of the Charity Charge Community -- as an individual cardholder or a nonprofit beneficiary -- visit

About Charity Charge: The Charity Charge World MasterCard, issued by Commerce Bank, has no annual fee and allows cardholders to automatically earn and donate 1% cash-back to the charities of the cardholders' choice. Charity Charge underwrites 100% of the donation processing fees ensuring the nonprofit receives the full amount. To apply for a card or for nonprofit registration information, visit​

Follow Charity Charge on Facebook, Instagram, SnapChat, Twitter, and YouTube @CharityCharge

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