Yes, when people use credit cards to make a charitable donation, often in an effort to earn points for rewards, the charities they donate to must pay a fee to the credit card issuer. Unlike retailers, who can raise their prices to cover this expense, charities must absorb it, which eats into the actual revenue that they receive from donors. Credit card transaction fees are typically 2.5% to 3% of the amount of the transaction. Rewards cards typically charge among the highest convenience fees. Some consumers, when making a charitable donation by credit card, voluntarily add an extra amount to their total to reduce the impact on the charity's revenue.
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