As Wallets Open For Haiti, Credit Card Companies Take A Big Cut

[Amerigo Vespucci]

As Wallets Open For Haiti, Credit Card Companies Take A Big Cut

http://www.huffingtonpost.com/2010/01/14/as-wallets-open-for-haiti_n_423238.html

As a massive human tragedy unfolds in Haiti, relief organizations are soliciting credit-card donations through their hotlines and websites. About 97 percent of these donations will actually make it to the designated organizations -- but the other 3 percent will be skimmed off by banks and credit card companies to cover their "transaction costs."

Thanks to this hidden fee, American banks and credit card companies are making huge profits -- somewhere in the neighborhood of $250 million a year -- off of people's charitable donations, according to a Huffington Post analysis.

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.

"After the tsunami, we had thousands of donations, and American Express and I think one other company temporarily waived their fees. So if this thing ramps up, we'll try to get in touch with these banks and see if they'll waive the fee again for us."

[Sebastian Doyle]

1. Greedy fucking bastards

They should be required to give up their profits on transactions like this. Especially the banks which only exist due to billions of taxpayer dollars.

[inna]

6. +1. Let me just add, *evil* greedy fucking bastards. nt

[Name removed]

2. Deleted message

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[Warpy]

3. Yeah, but it was also the quickest way to get my own cash

into the coffers of Doctors without Borders. I know the banks are sucking up a percentage.

I used my debit card, though, and the fee is lower than that for a credit card.

[JBoy]

4. Fucking banks. In their greed they're overlooking a golden PR opportunity.

Not only could they waive their normal transaction fee, but they could pledge some kind of matching donation for anyone who uses their card to make a donation.

[4_TN_TITANS]

18. Why do they need PR?

In case you haven't noticed, they don't care what Americans or Congress think because they have so many of them by the balls.

[mrbarber]

5. "and the credit card providers, with only a few exceptions, refuse to waive their fees"

What a shock.

Fucking greedy scumballs, worst of the worst.

[Vinca]

7. Greedy, fucking thieves.

:mad:

[HughBeaumont]

8. What I think can't be printed on DU.

No how. This is ninth-circle low.

[shadowknows69]

9. Altogether now. Awwwww.

Bwah ha ha ha ha ha ha! Fuck em with a rusty chainsaw.

[KamaAina]

10. Who would have thought Pat and Rush would have competition

for the coveted Scumbag of the Year Award? :grr: :banghead: :nuke:

[Wilms]

11. .

[Codeine]

12. Rachel Maddow Tweeted earlier this evening that

the major card companies have dropped their fees from Haiti donations.

[WolverineDG]

13. Sprint is charging standard messaging rates for those who text to the Red Cross

AT&T, Verizon & T Mobile have waived all charges, including for those who don't have texting as part of their plans. But Sprint still wants to make a buck off of Haiti. :grr:

dg

[Codeine]

16. Sprint has also waived text charges,

again, per Rachel Maddow's Twitter feed.

[WolverineDG]

17. I don't do twitter

& was going by what she announced live on her show, as well as checking Sprint's webpage.

dg

[thotzRthingz]

14. "...As Wallets Open For Haiti..." will Credit Card Companies also PLEDGE those profits? (n/t)

[northzax]

15. well, to play devil's advocate

for a second. should the banks waive fees for donations to all NGOs this week/month? just those engaged with Haiti? who determines that list? is Pat Robertson's 'charity' on the list? do they actually have to be engaged in Haiti relief, or just say they are?