Credit Card Companies Exploit Human Tragedy For Profit

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 -- the other 3 percent is 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 off of Haitian misery. Up to now the only exception was Capital One-- through its "No Hassle Giving Site", the bank waives transaction costs for holders of its Visa or MasterCard cards, so that 100 percent of people's donations goes to their chosen charity. "We are pleased to be able to donate these costs, and we believe this will generate customer loyalty and an enduring customer franchise," said Pam Girardo, a spokesperson for Capital One.

Only after pressure (resulting from media/blogger coverage) did American Express and Visa announce late today that they would be waiving their transactions fees on charitable contributions through the end of February.