Why did ACCA launch a credit card for contractors?

ACCA, the contractor-focused industry association, last month launched a credit card for contractors. 

• Given ACCA’s focus on government advocacy, I was curious about the motivation and did some digging. 

Details: The co-branded Mastercard offers contractors 2.1% unlimited cash back (if payments are made weekly) and a “dedicated vendor negotiation specialist,” among other perks. 

• Contractors can also get their annual dues covered by meeting certain spending milestones.

The big picture: It turns out the move’s logic is pretty simple: The association wants to make it a “no-brainer” for contractors to join, Sean Robertson, ACCA’s VP of Membership, told me. 

• “This is another way to make it effectively free for many contractors — by hitting spend thresholds on the card,” he said.

• Zoom in: “Of course, we need dues to operate, but, ultimately, it’s about strength in numbers to advance our advocacy mission and have influence in Washington,” he added. 

The intrigue: Mastercard’s concierge service will help contractors negotiate discounts with vendors, complementing its “existing cost-saving vendor deals.”

• While the website claims it’ll help contractors broker discounts with “any vendor,” it’s unclear if this includes equipment suppliers or just software vendors — the only ones displayed online. 

Zoom out: There also don’t seem to be any behind-the-scenes exclusivity arrangements between vendors and ACCA.

• “We want contractors to have choice and negotiating power with the folks they depend on to run their business,” Robertson said.  

• “We’ve actually cut the percentage of revenue dependent on corporate partners in half over the past five years so we can be more independent on policy stances and aren’t held hostage to any particular supplier,” he added. 

The bottom line: The offering actually makes sense for ACCA. Contractors get an independently valuable financial product, while ACCA gets a new channel to acquire members. And, on top of that, it gives existing members another reason to stick around.