For Haiti, Should Credit Card Companies Waive Processing Fees?
Banks and credit card companies make $250 million a year from the 3% they charge for “transaction costs.” So, roughly 97% of donations will actually be used to help Haiti.
Those profits rise sharply after major disasters, when humanitarian relief organizations such as Oxfam and Operation USA take in more than 85 percent of their donations via credit card — and the credit card providers, with only a few exceptions, refuse to waive their fees.
Credit card companies have only been willing to waive their processing fee for charity once, Richard Walden, the CEO of Operation USA, tells the Huffington Post, and that was for the tsunami disaster of 2004.
Capital One is an exception. It has a “No Hassle Giving Site.”
…the bank waives transaction costs for holders of its Visa or MasterCard cards, so that 100 percent of people’s donations goes to their chosen charity.
“We are pleased to be able to donate these costs, and we believe this will generate customer loyalty and an enduring customer franchise,” said Pam Girardo, a spokesperson for Capital One.