Credit Card Merchant Fees And Charitable Giving

by Jason Steele on February 3, 2012

Credit Card Merchant Fees And Charitable Giving

Non-profit organizations do an incredible amount of important work. They rely on both corporations and individual donors in order to support their efforts. As much as these organizations value individual donations, there is always a cost to receiving and processing the funds that are donated. Most charities choose to accept donations made using credit cards, even though there are additional costs for doing so. Credit card processors typically charge between 3% and 5% of the donation as a merchant fee. Nevertheless, there are steps that cardholders can take to try to ensure that charities receive as much of their donation as possible.

First, cardholders can consider other forms of donations. As convenient as it is to charge a gift to a credit card, non-profits will also accept cash, checks, debit cards, and wire transfers. While it may be tempting to imagine that there are no costs to associate with a donation in the form of cash or a check, unfortunately, there are. For example, donations in the form of cash or checks require labor to accept, count, and transport. Furthermore, charities accepting cash donations must also pay for security and account for the inevitable losses. [click to continue…]

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The Advantage of Using Cash Back Credit Cards with Fixed Reward Rates

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How to Pick the Best Credit Card Offer


When searching for a new credit card, the most important factor to consider is how you will benefit financially. This benefit could come in the form of a 0% APR balance transfer or a rich credit card rewards program. Ultimately, however, the best credit card for one person isn't necessarily the best for everyone. Thus, here are some tips to help you avoid bad credit card offers and find the best credit card for you.


Tip #1: If you have credit card debt, get a balance transfer credit card: balance transfer credit cards provide a lifeline to people with credit card debt. Essentially, you pay a small three to five percent fee and in return you pay no interest for anywhere from a year to eighteen months (depending on what offers are available). Anyone with credit card debt being charged 13% or more should take advantage of these offers as soon as possible. Not only will they save you money on interest, they can also help you get out of debt much faster.


Tip #2: If you are about to go into credit card debt, get a 0% APR credit card: 0% APR credit cards allow you to pay no interest on new purchases for six to twelve months. Just how much you can save with a 0% APR credit card depends a lot on how you use it. To maximize savings, apply for a new 0% credit card just before making a large purchase. The clock starts ticking the minute your application is approved, so to save the most money, get a 0% APR credit card as close to the time of a big purchase as possible to save the most on interest.


Tip #3: Avoid most airline credit cards: The Delta Skymiles credit card and the Continental Onepass credit card offer free checked bags; every other airline specific credit card does not. Thus, unless you fly on Delta or Continental, you are going to pay a high annual fee and a high interest rate to earn miles that are difficult to use. However, if you do fly on either Delta or Continental at least once a year, the money you save on checked bags can more than make up for the annual fee.


Tip #4: Avoid most credit cards with annual fees: If you only spend a few thousand dollars a year on your credit card, paying an annual fee to earn credit card rewards is a waste of money. There are plenty of very good no annual fee credit cards available that offer cash back, miles, and points.


However, if you spend more than $10,000 a year on your credit cards, there are a few rewards credit cards that are worth the annual fee. One such card is the Capital One Venture Card, which lets you earn two miles for every dollar you spend. These miles can be redeemed at a value of one cent a piece on most airlines.


Tip #5: Always have at least one Visa or Mastercard and two credit cards: Discover and American Express top J.D. Power's annual customer satisfaction poll every year and are accepted just about everywhere in the U.S. However, it is very important to always have a Visa or a Mastercard just in case, especially when traveling abroad. And, because credit card companies might randomly cut your credit limit at any time, it is important to always have two credit cards just in case.


To compare offers and apply online, visit the credit card applications section of Card Wisdom


 
     

 

About the Credit Card Wisdom Blog


Since 2004, I've spent most of my working hours analyzing and comparing credit card offers. I built Card Wisdom to help people like you separate good offers from bad ones. In the credit card comparison section of Card Wisdom, you can view up to the minute details on nearly 100 credit card offers from every major credit card company. In each credit card category, I try to point out the various tricks credit card companies use to help you avoid bad credit card deals. Thus, if you're looking to apply for a credit card, use the navigation on your left to select the appropriate category.


On the Credit Card Wisdom blog, I share my opinions on everything from credit card companies to individual credit cards. Here you will find reviews of heavily advertised credit cards and credit card rewards programs as well as information on current deals and promotions. Everything I write here is my unbiased opinion and is based not only on the specifics of card offers, but also on the information that has been shared with me over the past six years from visitors like yourself. It is because of this you may notice that I favor certain companies over others. This bias was born during the credit crunch, when companies like Discover treated their customers well while some of the major banks raised interest rates to as much as 29.99%.


Hopefully, you will find answers to your credit card questions on Card Wisdom or the Credit Card Wisdom blog. If you don't, please don't hesitate to contact me. My goal is to help my visitors save money and profit from credit card rewards and I answer all emails personally. Thanks for dropping by.
Jeff Weber, Editor In Chief