Ways to use credit cards to help environment

Not many are aware that credit cards can also be used to help the environment

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Mastercard and Doconomy, a Swedish fin-tech start-up had earlier this year released the Mastercard Do Black, which is a credit card that tracks the carbon footprint of every purchase that the user makes. It prevents the user from making additional purchases once they hit the carbon budget. The company has explained that it is made with bioplastic and printed with ink that is made of air pollution and thus making it healthy for the environment.

Do Black makes use of data from Thomson Reuters and Sustainalytics, which is an Amsterdam based firm that rates the companies on the basis of sustainability. It measures the climate impact on every purchase. The card is a part of the new mobile banking service that is currently available in Sweden and likely to launch soon in other markets including US and the UK. There is also a separate card known as Do White that monitors the carbon footprint of the purchases without cutting off credit once they have reached the limit.

At present the US credit card holders are not currently eligible to apply for a Mastercard that keeps tab on their carbon footprint. But that does not mean that the users cannot use the credit card to support the environment. There are many reward credit cards that give an opportunity to donate the rewards to the charity of their choice, for instance, instead of converting the cash back or points in to a statement credit or a gift card, the users can give those rewards to an organization that contributes to do environmentally friendly work.

However, there are a few credit cards that have the donation aspect built-in. When the World Wildlife Fund Credit Card is used from Bank of America, the WWF receives about 0.8percent of all the retail purchases made on the card. That marks 8 cents for every $100 that is spent. The figure might seem small, but every bit helps.

Photo Credits: Pixabay