If I use my credit card to donate to a local charity will they have to pay fees?

[alan2011]

I just made a $50 donation to a local charity.  I usually use direct withdrawal for all my PayPal payments.  It is in my interest to use a credit card instead.  Will this form of payment increase costs for the charity or for me?  Is there any reason I shouldn't use my credit card for all my PayPal payments?  At least this gives me points.  

Thanks,

Al

[PayPal_Adrian]

Welcome to the boards!

Using a credit card to pay a charity is perfectly acceptable - and it won't cause their fees to go up at all.  So donate away! 

Adrian

[alan2011]

Is there any downside to using a credit card with paypal all the time instead of direct from my bank account?

Thanks,

Al

[PayPal_Adrian]

Hello again, Alan2011!

When donating to a charity, there really isn't a downside (aside from the bill your credit card company may charge you). Even when making a purchase from a regular merchant, the merchant doesn't have an increased fee burden either. Most buyers do prefer bank transfers over credit cards in either event, which is why this is the default method of payment if a bank is available.  However, you can opt to charge the card even if you have a bank available.

There is one instance where accepting a credit card payment comes with additional fees, but that is associated with what is called a Personal payment.  Personal payments are special transfers between friends and family, such as paying your coworker for your share of the lunch bill or sending a child away at college some much needed funds.  In that instance only, credit card payments come with a higher fee than a bank transfer.  However, because it's a transfer between two family members, PayPal will even give you the choice to pay the fee on behalf of the recipient. 

If you're donating or purchasing, however, you won't run into Personal payment scenarios (you also have to specifically designate it as a Personal payment), and for your own safety and for that of your seller, you wouldn't want to send a Personal payment for a donation or a purchase.

So, long story short, there's not a drawback.  So donate away! 

Adrian

[alan2011]

That really covers it.

Thanks a lot and have Happy Holidays,

Al

[PayPal_Adrian]

You're welcome!  Sorry about going a bit overboard on that one.  There's a lot of information about PayPal running around in my brain

Happy holidays to you as well!

Adrian