
Star Wars Credit Cards: May the Force Be in Your Wallet
NEW YORK (MainStreet) -- Star Wars fans have a new way of funding their personal Death Stars: Disney (DIS) - Get Report has released a series of themed credit cards dedicated to a galaxy far, far away.
After Episode I, it was bound to happen.
Since the announcement that it will roll out a series of sequels to the original, Disney has gone on a blitzkrieg to convince fans that J.J. Abrams will handle the Star Wars legacy with greater dignity than George Lucas. Disney wants us to go see these movies and is pulling out all of the stops to get theatergoers in the seats. Most recently that includes issuing a version of the Disney Visa credit card branded with Darth Vader, Yoda or C-3PO with R2-D2.
The card is an update to the existing Disney card and comes with a series of Star Wars-themed perks, from a members-only “meet ‘n’ greet” at Disney World to 10% off related gear at the Disney Store. Remote control X-wings notwithstanding, it’s not a bad card.
It’s not a great card either. Here's why.
With a standard 1% cash-back and 2% back on gas and groceries, it’s a wholly unremarkable piece of plastic. Like most partnership cards, the Star Wars cards shine when spending money with Disney stores and theme parks. There the rewards are at their best, offering a laundry list of perks and offers for loyal customers but only if they spend a lot of money in-universe.
Outside of the rewards offered for shopping at the Disney stores, websites and parks, that 1% cash-back is unremarkable. Qualifying consumers can, in all likelihood, do better.
As Matt Goldman, CEO of the financial advice site Wallaby, said, these are “fine cards, if you’re planning to spend a lot of money with Disney.”
A Star Wars card, he said, is a “pretty typical, effectively 1% point type earning card" -- but has appeal for Disney or Star Wars enthusiasts who want the novelty of having a little bit of the force in their wallet.
“A lot of people accept real middle of the road cards in order to get a brand on them,” Goldman said.
In the middle of that road, it turns out, are a lot of consumers who simply aren’t getting enough bang for their buck.
Branded credit cards have become a popular new way to attract subscribers. From safely corporatized rebellion with the Sex Pistols to power spending with Pikachu and Star Wars, they’re a way for banks to differentiate their products from the pack. Sometimes, it's about a consumer who wants to associate himself with prestige. What’s more, they work.
In a 2013 report, the research firm Packaged Facts found that co-branded cards accounted for 35% of all credit card dollars spent in 2012. That figure accounts for a wide range of products, from airline partnership cards all the way to being tickled by Elmo’s own MasterCard, but it says something that Goldman thinks bears repeating: customers like having their passions reflected in their wallets.
It’s just fun, and they don’t always think much farther than that.
“People like things that are either part of a team or that make them feel unique and stick out, even through it’s just something in their wallet,” Goldman said. “For some people it’s right. I think it goes back to that they have a really strong affinity for a certain brand.”
It’s not just pop culture either. Franchises, such as with the NFL and NBA, offer partnership cards that allow users to get extra points for supporting their teams. Universities have paired up with banks to create alumni cards.
Customers see them often as entertaining ways of expressing their loyalty to a product or brand or a way to make this day-to-day object more fun. That’s all well and good, except for when they fail to do their homework in favor of brand recognition.
That’s when consumers lose out.
According to Goldman, many shoppers fail to research branded credit cards fully. As a result, they get stuck with cards that aren’t necessarily the best fit for their finances or even ones that might be actively bad products.
“I think it is common that a lot of people use cards that are maybe not the right card for them in the traditional sense of what best matches your spending,” he said. “This is true in a lot of areas. Like alumni cards are fine, but a lot of people get them because of their affiliation with the school… I used to have an alumni card, but as much as it felt good for me, I recognized that I wasn’t getting anything from it and he school wasn’t getting anything from it.”
As much as customers can miss out on potential rewards, others can end up actively losing money with cards that charge high annual fees or demand foolish spending patterns. In particular, he highlighted the cards affiliated with sports franchises as particular examples of bad instruments.
So, Star Wards cards have arrived. For users who want to pull out their little Yoda every time they drop by Starbucks, it may be a chance to make their day-to-day spending fun, and with $1 billion in merchandise sold on Disney’s “Force Friday,” the marketing push seems to be working. Just don’t let this card pull a Jedi mind trick.
At 1% standard cash-back and 2% back on gas and groceries, this isn’t a particularly bad decision. For huge fans of Disney, the Disney Store and all things Mickey, this might even be a great card. But do your homework… as with most branded cards, just because the picture looks good, doesn’t mean the product is too.
Find the right cash back card for your shopping habits. If it can come with a side of Darth Vader all the better. If not, shop smarter and use that extra money to buy a few Jar Jar punching bags.










