Credit card issuers spend big on campuses
The Federal Reserve Board released a report this week that identified over 1,000 agreements between credit card issuers and colleges, alumni association and other related entities.
Credit card companies paid an estimated $83.5 million to institutions over the last year. Among the agreements were the right to issue cards bearing a school logo and the right to market cards to students.
In total, the agreements led to the opening of more than 50,000 accounts in 2009 according to The Associated Press. Of the deals reported, 40 percent were made with colleges while 33 percent were with alumni associations.
The largest agreements were with alumni associations from Pennsylvania State University, Harvard University and the University of Michigan, all of which opened an average of 1,000 accounts and were paid more than $1 million by credit card companies.
Among the biggest spenders were FIA Card Services, U.S. Bank National Association and Chase Bank, the news source reports.
Credit card companies are now required to submit information on the agreements to the Bureau of Consumer Financial Protection, under the Credit Card Accountability, Responsibility and Disclosure Act of 2009.