|
Following a crisis like the earthquake disaster in Haiti, card donations play a significant role in getting aid to where it is needed, quickly and effectively. Donating with a debit, credit or charge card provides speed, fraud prevention, and increased donation amounts for charities. Learn more here.
Former FEMA Director James Lee Witt says “Give money, not cash” when donating in times of crisis.
The Huffington Post
Frequently Asked Questions
Q: What happens when I donate using my card?
Q: What does it mean to say that the card networks are waiving fees on charitable donations to Haiti?
Q: What are the designated charities for my network?
Q: What else are the banks, credit unions and other financial services companies doing to help?
Q: Is this the first time fees were waived for donations?
What happens when I donate using my card?
When credit or debit cards on the Visa or MasterCard networks are used as a form of payment, interchange is paid by a merchant’s bank to a customer’s bank or credit union. This cost is a part of what the merchant pays to his or her bank in exchange for the benefits they receive when they accept these cards. When a merchant accepts cards on the American Express or Discover networks, they pay a discount rate directly to those networks. To support the relief efforts in Haiti, Visa, MasterCard, American Express and Discover are waiving the cost of all credit, debit and charge card donations to designated charities.
What does it mean to say that the card networks are waiving fees on charitable donations to Haiti?
Card networks are waiving the fees typically paid by charities for sixty days (generally) for donations given to designated charitable organizations. By waiving these costs, banks and credit unions that offer cards on the Visa and MasterCard networks, as well as American Express and Discover, will be donating hundreds of thousands of dollars worth of card services to these charities.
What are the designated charities for my network?
You can see the designated charities for each network by clicking on the links below.
- Visa
- MasterCard
- American Express
- Discover
What else are the banks, credit unions and other financial services companies doing to help?
All banks and credit unions that issue cards on any of the card networks, as well as American Express and Discover, will effectively be waiving the fees, as they are the ultimate recipients of that revenue. Moreover, twenty-five institutions and financial services firms have pledged more than $16 million to the Haiti relief effort. These are taking the form of one or more of the following donation methods:
- Donating all card services costs associated with use of debit, credit or charge cards to designated charities.
- Making cash donations to the Red Cross and other charitable organizations.
- Matching or doubling employee donations.
- Matching customer in-branch donations for relief efforts.
- Utilizing rewards points to support relief efforts.
- Waiving the wire transfer costs for transactions to Haiti.
- Working with U.S. and Haitian governments to explore how electronic payment technology can be helpful in effectively distributing relief funds.
Is this the first time fees were waived for donations?
The card industry has a history of waiving the cost of donations; for example, several networks and banks waived card costs fees on charitable donations after the 2004 tsunami disaster in Asia, and after the 9/11 terrorist attacks in New York. Banks are also taking action on charitable donations more broadly; for example, Capital One has been waiving transaction fees made through its No Hassle Giving site since 2008.
|
