How Credit Card Companies Are Profiting Off Charitable Donations

If you write a $100 check to a charity you can be sure the charity will get all $100.

Drop a $100 bill in a charity’s bucket, and the charity still gets $100.

But, if you donate $100 to a charity using your credit card, the charity is looking at about $97 and some change.

Credit card transaction fees take a portion of charitable donations.
Credit card transaction fees take a portion of charitable donations.

Credit card companies typically charge processing fees on all transactions, even charitable donations. They can siphon off upwards of 3% of every donation. And while 3% may not sound like much, it adds up quickly. As the Balance reports, “credit card processing will be expected whether a donor responds to your direct mail appeal, an email solicitation, or even when at a physical event such as an auction.”

Credit card companies and banks make as much as $250 million each and every year from these fees, a number that increases greatly in times of crisis. This is an unconscionable amount of money to take away, money that is vital for relief and development across the globe.

Credit card companies make millions every year in transaction fees.
Credit card companies make millions every year in transaction fees.

The major credit card companies — Visa, MasterCard, Discover, and American Express — responded to public outcry against this practice after the 2010 earthquake in Haiti with half-measures and smoke and mirrors, ABC reports. They chose a very small group of charities which would be exempt from those fees for a very limited amount of time. Donations sent to help respected organizations in Haiti — such as those to Partners in Health, Doctors Without Borders, and Mercy Corps — were still subject to excessive and amoral fees. There is no reason to believe that, without pressure from customers, these companies will cease charging for charitable transactions of their own accord.

Help us stop credit card companies are profiting off disaster.

Help us stop credit card companies are profiting off disaster.
Sign the petition and help us stop credit card companies are profiting off disaster.

Click below to send a strong message to Visa, MasterCard, & other major credit card companies: Every penny of a charitable donation must reach the people who need it most. Waive all transaction fees, for all charitable donations, for all time.

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