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Are banks playing on the consumer’s conscience?

September 14, 2007 by admin  
Filed under News, News-Banking

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Over recent months consumers in the UK have been finding more and more services and products that are going ‘green’, enabling them to get the services or products that they need whilst also helping the environment.

The latest to jump on the environmentally friendly bandwagon is the credit card, with a number of issuers now offering the consumer the chance to enjoy the convenience and flexibility of credit card spending whilst contributing to the environment.

Depending on the green card that you opt for, the credit card issuer will make a lump sum donation to an environmentally friendly cause when you open an account, generally around £20-£25. The card issuer will then make a contribution to the cause with every pound that you spend on the credit card. These cards work in the same way as charity credit cards, and the more that you spend the more money gets donated to the environmentally friendly cause.

Consumers can also enjoy various benefits, such as very low interest rates charged on any environmentally products purchased on the card. However, some experts are wondering whether the banks are exploiting consumers’ concern over the environment with these cards. Green cards offer competitive interest rates, but they are not the lowest rates out there, and therefore these cards will help consumers to help the environment but will not necessarily enable them to help themselves when it comes to finances.

According to one expert:  “The environment is of prime concern to many people today, so seeing financial institutions donating to green causes will please many people. You still need to be diligent in taking on any credit card, though. You need to weigh up all the benefits against any potential costs, whether those are higher rates or hidden fees. An eco-friendly card may not be the right option for everybody.”

Tom Smith
14th September 2007

Tags: green credit card, Credit card, banks, consumer, bank accounts, Credit Cards, Payment systems, way

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