Banks' fee waiver worth thousands of aid dollars

Major trading banks have entered into the spirit of tsunami appeal-giving by waiving the fees they charge charities for processing credit card payments.

Charities in the appeal - like any organisation or business receiving credit card transactions - usually pay banks a "merchant fee" of up to 2 per cent of the transaction.

But the banks say they will refund this fee to charities in the appeal.

"It means the full amount of any donation made to these agencies will be received by them," said ASB Bank spokeswoman Linley Wood.

BNZ spokesman Owen Gill said that in the case of Oxfam and Red Cross - two of the charities people can donate to through their Visa and Mastercard cards - the saving could amount to $40,000.

Westpac spokesman Paul Gregory said the bank's refunds were expected to top $50,000.

He also said no bank fees were charged on the accounts held by registered charities raising funds for the tsunami appeal.

The banks say the refund period for credit card donations is from December 26 to January 31.

The fees gesture comes on top of the banks' own donations to the appeal of $100,000 to $120,000 each.

Appeal charities yesterday reported a deluge of donations arriving in the mail.

World Vision said it received 3000 letters yesterday from people wanting to donate.

Its appeal had reached $2.5 million - up $500,000 from its Tuesday tally.

Oxfam's collection rose to $950,000, boosted by a flood of corporate donations, and the Red Cross total reached $5.5 million.

The public has now donated more than $11 million to various tsunami appeal charities.

The country's restaurants, cafes and chartered clubs yesterday announced a fundraising event called Dine Aid. On January 29, they will donate $1 from the food bill of each customer.

The Chefs Association, Restaurant Association and Clubs New Zealand are looking for more venues willing to take part.