Jan
15
Last year, colleges in California, alumni groups, and university foundations made around $6.6 million in royalties, from the agreements they made with the card issuers. Over 3,000 new accounts were opened, as per the Federal Reserve Board report in July.
Under this agreement, banks could get exclusive access to market credit cards to the alumni groups as well as university students. Royalties are paid to universities and related organizations depending on the number of new credit card accounts that are opened.
There has been a decline in revenue from all these branded credit cards over the last year, according to the annual report. However, consumer advocates have stated that the decline was partly due to the CARD Act of 2009.
