Are the credit companies foregoing their usual commission on Haitian relief?
American Express and Visa are waiving fees.
American Express, Visa waive fees on Haiti donations
How nice of them, after every single one of my credit card jacked up my rates to comply by the February deadline.
Interesting article. I was just thinking about this, and it’s good to see they aren’t making a profit on it (this time).
Nothing was said about Master Card and about outside the US.
Refunding transaction fees implies that not only are credit card companies not making a proft, they accept a loss for each transaction. Transactions are costly to process.
Is this sarcasm or something? What exactly is costly about adding some fields to a database and moving some money electronically from one bank to another? The incremental cost of processing a credit card transaction is negligible.
The biggest cost is probably from Amex or the banks advancing the money to the charities for a month until the charges come due.
However, the cost of processing 500,000 credit card transactions is not.
And the incremental benefit of a $10 or even $100 donation to Haiti relief is also negligible. But it’s amazing what happens when you multiply that by a few thousand or million.
Actually, since it’s an incremental cost, it stays the same. You do know what an incremental cost is, right?
Yes. Which is why I didn’t say anything about incremental cost.