People have been able to use their credit cards to make direct payments to charity for quite some time. But now many charities are automating the practice of receiving donations by launching their own credit cards backed by major banks.

Charity Credit Cards ? How They Work

Charity credit cards donate to charities in two ways. People apply for credit cards as usual. Once the application is accepted, the issuing bank donates a lump sum to the charity. This can vary considerably, from as little as ?5 to ?40 or more.

The second part of the donation is a fixed percentage of spending on credit card purchases. Again, this rate can vary from around 0.25% to 1%. This means that charities get 25 pence for every ?100 spent on the card.

Some card issuers offer an incentive for repeated spending on the card or for continuing to keep the card. This usually means another lump sum donation to the charity at the end of a set period, such as a year.

Children's Charity Credit Cards

There are many charities that issue credit cards, including many popular children's charities. The NSPCC (National Society For The Prevention of Cruelty To Children) card is backed by Halifax and offers a preferential rate on balance transfers for six months. Other credit cards for charities that benefit children include:

1. Barnardos ? issued by Cooperative Bank

2. Children in Crisis ? issued by Cooperative Bank

3. Childline - issued by MBNA

4. Children's Aid ? issued by Cooperative Bank

5. Children's Society ? issued by Cooperative Bank

6. Great Ormond Street Children's Hospital -

7. Mencap ? issued by Halifax

8. Save the Children ? issued by Cooperative Bank

All of these credit cards offer a one-off donation when the card is issued, a percentage of spending donated to charity and an additional donation for continued use of the credit card.

Looking For The Best Charity Credit Card Deal

In addition to donating to charity, most charity credit cards offer the same benefits as other credit cards. It is worth shopping around for the best deal. There are many websites that have credit card comparison charts to help people decide on the best mix of features.

Many charity credit cards have introductory offers. These include 0% balance transfer rates for fixed periods. Some card issuers charge a one-off fee for balance transfers to stop the practice of rate jumping.

Other introductory offers include long term low interest rates, low or 0% interest rates on purchases, reward points and more.

Shopping around for the best credit card deal will give consumers a credit card that suits their spending habits. At the same time, they will be able to automate their charitable contributions. This benefits both consumers and charities.