Credit Card Issuers Providing Relief Programs to Those Affected by Katrina

Posted On: September 14, 2005

By Rebecca Lindsey, CardRatings.com Senior Staff Writer

Starting over from scratch is never easy, and to those hit hardest by Hurricane Katrina a little financial assistance can go a long way.

American citizens are stepping up to the plate to volunteer money, time and anything else that is needed. Credit card issuers are also doing their part to help those affected by Hurricane Katrina. Not only are most major companies donating money to the American Red Cross (ARC) and other organizations designated to assist in this catastrophe, they are also giving some much needed assistance directly to cardholders.

Here’s a brief round-up of what credit card companies are doing. Please Note! We have attempted to include as many cards as possible, however, if your card issuer is not listed, you can find out if and how they are offering assistance by calling them or checking out their website.

American Express has established special procedures for Cardmembers to address additional spending needs, delayed payments and associated fees; temporarily stopped the mailing of statements and card delivery in impacted zip codes; established special Merchant procedures to address concerns with fees, reimbursements and disputes; and is assisting Merchants in receiving electronic reimbursements, as well as obtaining equipment needed to manually authorize and submit charges. In addition, cardmembers enrolled in a rewards program can convert points for a donation to Katrina victims. 1000 points converts into a $5.00 donation.

Bank of America’s efforts include the waiving of late fees, over limit fees and finance charges, special assistance on monthly payments, and emergency credit line increases. Additionally, Bank of America made a $1 million donation divided between the ARC Disaster Relief Fund and the Houston Food Bank via the Gulf Coast United Way Katrina Relief Fund to feed 23,000 evacuees currently housed at the Houston Astrodome. Bank of America will also match associate pledges through the bank’s Matching Gifts program and will not limit its overall relief donation.

Capital One is coordinating an internal program to allow associates to donate to the Hurricane relief efforts, matching two-for-one on all U.S. and Canadian associate contributions to the ARC Hurricane Relief effort, up to a combined total (associate and Capital One) of $500,000. This is in addition to Capital One’s donation of $1 million to the Red Cross for food, supplies, and other immediate support to the victims of the hurricane. Additionally, 1500 Capital One® associate volunteers provided call center support to help raise $4.25 million of the $17 million raised through NBC’s “A Concert for Hurricane Relief.”

Discover Card has established a hotline (1-800-DISCOVER) for those affected to determine assistance needed through payment relief, emergency replacement cards, emergency PIN numbers and other special services. Discover Card is also providing a mechanism for Cardmembers to donate their Cashback Bonus to the ARC, and adding 20% to the donation. In addition, they will rebate all merchant fees associated with disaster relief contributions to the Red Cross.

New Millennium Bank (a leading secured card lender) will waive late fees and interest charges to its cardholders in the affected region, and expects to continue this program for at least three months. Cardholders should call 732-729-4395.

Visa USA is providing emergency cardholder assistance (1-800-VISA-911 to all Visa cardholders in the impacted areas) for lost card reporting, emergency card replacement, emergency cash, and emergency messaging direct link contact with Visa Members. Along with an ATM locators service and mobile ATMs, Visa has also tuned its fraud detection systems to monitor transaction activity for potential fraud. Visa has also provided a donation of $1 million to the ARC and is matching employee donations made to the ARC, up to $500 per employee. Finally, Visa is waiving fees through October 31, 2005 for donations made to the ARC by U.S. based Visa cardholders on their Visa cards.

MasterCard International has contributed $500,000 to the ARC and $500,000 to AmeriCares to support the relief efforts underway for those impacted by Hurricane Katrina. Additionally, MasterCard has initiated a relief program in which personal donations made by its global employee base will be double-matched by the company, and has also donated its advertising space in USA Today to the American Red Cross to help the organization communicate its important messages during this time.

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