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Industry News

Payment processing industry uses rewards points to support Haiti relief efforts

By Kristen Lawrence

29/01/2010 - After the catastrophic earthquake in Haiti recently, there has been an outpouring of support from consumers and businesses alike. Now the payment processing industry is doing its part.

In the immediate aftermath of the earthquake, many credit card companies waived the transaction fees accompanying credit card transactions used to donate to Haiti relief.

Now, many credit card networks are allowing cardholders to redeem their rewards points for donations to the cause, the New York Times "Bucks" blog reported.

For example, Chase allows customers to redeem their Ultimate Rewards points for donations to the American Red Cross Haiti Relief and Development Fund, while Capital One allows cardholders to donate to charities - including those that support Haiti relief - using rewards points through its No Hassle Giving Site.

American Express has set up a donation structure in which 1,000 points equals a US$10 donation to relief charities, while Bank of America customers can redeem their WorldPoints Rewards and Power Rewards for Red Cross donations.

The payment processing industry has been getting increasingly innovative with its rewards points as a way to lure recession-weary customers back to credit card spending - American Express, for example, recently announced that cardholders can now use their rewards points to pay taxes.ADNFCR-2514-ID-19585555-ADNFCR

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