Credit cards are a modern-day convenience that most people possess. They give you access to cash (with interest) and provide a secure and quick way to pay for goods and services. Major credit cards are also the most widely accepted form of payment domestically and internationally. While having a credit card can make life easier, it comes at an environmental cost that businesses and consumers must evaluate and improve.
Believe it or not, credit card companies have a sizeable carbon footprint impacting the planet, its inhabitants, and their way of life. Let's take a look at some of the common issues.
Credit Cards
Let's start with the obvious issue - the product. Credit cards are made from plastic. With millions of credit card holders worldwide, you can imagine how much plastic is used to produce and package each product. This process is not only for issuing new cards but for lost and stolen cards and renewals when old cards expire. As plastic pollution continues to be an issue for humans and wildlife, it's a matter that must be addressed.
Direct Mail
Credit card companies are among one of the many industries that still use direct mail to promote products and services and communicate with cardholders. They print thousands of postcards, flyers, and promotional materials to get consumers to apply for credit card offers. Most companies also send credit cards, account statements, and other correspondence through the mail. As you might imagine, that's a lot of ink, paper, fuel, and carbon emissions (distribution).
Production And Shipping
Credit cards are made from raw materials and chemicals found in petroleum. Essentially, producing credit cards on a mass scale means extracting oil from the earth, which causes air pollution. Once the products are ready to ship, credit card companies contribute to fuel consumption and carbon emissions.
Usage
Here's something most people don't consider. Using credit cards is also harmful to the environment. Whether you take cash out of an ATM or swipe it at a retail store, you must use a device powered by electricity.
What Can You Do?
Now that you understand the impact of credit card companies on the environment, you may be wondering what you can do about it. Although the use of credit cards will likely be around for a while, there are things you can do to encourage credit card companies to choose more sustainable solutions. Below are some suggestions:
Choose Sustainable Companies
One way to encourage the masses to consider and change their practices is to start supporting those that have already made an initiative. For example, Aspiration is a sustainable "bank" that helps people spend, save, and invest with a conscience. They also invest their money into businesses, causes, and projects that support sustainability and saving the planet. If more consumers switch to companies that practice and support sustainability, eventually, major corporations will have to make a change to stay afloat.
Virtual Cards, App Payments, And Online Transactions
You can help reduce the need to produce credit cards by avoiding or reducing your transactions using plastic. There are virtual cards, digital wallets, and online payment portals that you can use to complete transactions, eliminating the need for a credit card that ultimately harms the environment.
Demand More
Last but not least, speak up. Consumers have more power than they realize and can use this to encourage businesses to do better. If you have a credit card with a company that funds big oil companies or doesn't implement sustainable practices, contact customer service and express your concerns. You can also create a post on social media, back causes and groups already standing up to credit card companies or sign petitions. The more your voice is heard, the more awareness it brings to other consumers, and together you can evoke change.
Most people don't realize how harmful credit card companies are to the environment. However, the mass production of credit cards, the amount of damage required to manufacture and ship cards, and the continued support for oil companies are becoming increasingly challenging issues that hurt everyone. As a consumer, you may feel powerless; however, the advice above can help you do your part to demand change from big businesses.
