Archive for April, 2011

Why I Might Donate to Obama

Monday, April 11th, 2011

Many consumers aren’t really privy to what goes on behind the scenes when people use credit cards.

Well, let me tell you, it’s not pretty. Virtually any time you use your card — regardless of whether it’s a credit card or a debit card that you’re using like a credit card — the merchant gets hit with a substantial fee. There is usually a fee made up of a flat, per transaction fee on the order of $.25 to $35, plus a portion of the transaction, which can be as high as 7% in some cases. (Usually it’s closer to one or two percent, however.)

It’s extremely unlikely that Obama’s campaign is not subject to these fees. So, if someone were to, for example, visit Obama’s donation page, and make a “donation” of one cent, it would actually cost the Obama campaign something like twenty-five cents.

According to their website, each individual is allowed to donate a total of $5,000 per election cycle. (That’s $2,500 for the primary, and $2,500 for the general election.) So, for example, if one were to write a script that “donates” $5,000, one cent at a time, it would result in a net loss of $125,000 for the Obama campaign.

I haven’t done it… I’m just sayin’…