When was the last time you got a compliment on your credit card?

Steve O'Connor '73 reports that it's not uncommon for sales clerks to recognize the photo of O'Kane Hall on his MasterCard, or the charging Crusader on his platinum card.

"They'll say something like, 'Oh, Holy Cross, my cousin goes there,' and pretty soon we're in a conversation," says O'Connor, who is coincidentally, chair of the GAA credit card committee. 

The opportunity to promote his Alma Mater is one of several benefits O'Connor derives from the GAA-sponsored credit card. 

"Using the card is a way of showing my support for the GAA, an organization I feel good about," O'Connor notes, "and it helps the GAA provide scholarships and other benefits for students."

Since 1992 the GAA has been in partnership with MBNAmerica, the nation's largest affinity credit-card issuer, to offer MasterCard credit cards to alumni. Third- and fourth-year students are offered MBNA credit cards by direct mail. The company visits campus each year to provide free classes to students on the responsible use of credit cards. Another benefit of the partnership is the internships the company sponsors for Holy Cross students. MBNA also recruits students for full-time, postgraduate positions. 

When you use the GAA card, it generates revenue for the GAA based on purchase volume. 

Knowing that his credit card purchases are providing the GAA with financial support takes some of the sting out of the monthly statement, O'Connor concedes.

"We all get credit card solicitations-they're a dime a dozen," he adds. "But the GAA card offers something of value to the association and the students."

Indeed, credit-card usage has become fundamental to the economy. A study published last year by the Federal Reserve's division of research and statistics showed that 75 percent of all American families have one or more, and two-fifths of them carry a balance on their cards.

Those with the GAA credit cards include 3,700 alumni and 140 students; their usage provides significant income to the GAA.

The partnership with MBNA has been very beneficial to the GAA, according to Patrick L. McCarthy '63 director of alumni relations. McCarthy notes that, since 1992, the credit-card program has generated more than $300,000 in income for the GAA. In fiscal year 2000, credit card royalties of $76,000 represented 90 percent of the GAA budget. 

"Besides the credit-card royalties, MBNA has donated additional money for scholarships," McCarthy says, "Last year the amount donated was $15,000."

In the fall of 2000, the GAA awarded seven $6,000 scholarships (up from last year's six) to graduating seniors who are sons and daughters of Holy Cross alumni-a total $42,000. Four of these scholarships are based on academic achievement and need; three are based solely on academic achievement. 

In addition to scholarships, the GAA uses income from the credit cards to support several programs and events. Among them are fellowships for students who do internships at service organizations such as Mary House, the Washington, D.C.-based organization headed by Bill Murphy '73 that provides shelter for homeless families.

"We consider the income generated by the credit cards as seed money," O'Connor says. "It enables us to expand the scope of programs such as the fellowships."

The Bishop Healy Committee, which promotes diversity in admissions, is another recipient of GAA funds, as are the student Appalachia Project, alumni and College retreat programs and Continuing Education Day for alumni.

Remember this the next time you get a phone call from MBNA soliciting your participation in the GAA credit card program, O'Connor advises.

"Nobody likes telemarketing calls," he acknowledges, "and the GAA works closely with MBNA to ensure that the calls are professional and that representatives are courteous."

Additionally, telemarketing campaigns are timed so that they don't conflict with the Holy Cross annual fund drive. Solicitations by mail are subject to the GAA's review and approval, and all communications emphasize that the credit card is sponsored by the GAA, not the College. 

"We insist on scrutiny and accountability," notes McCarthy. 

"In my mind, it's a win-win opportunity for both partners in this program," adds O'Connor. 

M. L.