How The Small Donor Boom Drives Millions To Credit Card Processors

A Newsy analysis found that the small donor revolution has also helped direct millions of dollars to the middlemen that process donations. ------------------...

Tik Root | Politico | Video: Newsy

Bernie Sanders and Elizabeth Warren have eschewed big-dollar fundraising events to support their 2020 campaigns, instead turning to their grassroots supporters for small-dollar contributions. It’s central to both candidates’ appeal: the idea that everyday people, not big financial institutions or wealthy and powerful interests, are financing—and benefiting from—their efforts.

Donors have responded in droves— donating tens, hundreds or even thousands of times, in amounts as small as $1. But what these grassroots supporters may not realize is that, in making small, repeated contributions, they have, in aggregate, delivered a huge payday for the middlemen, often large banks and financial institutions that process those payments.

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