PAO Group Inc (PAOG)

[Salvatorey1234]

Right--Here's the complication. Let's say we visit a non-partner retailer with the card.

I spend $100 plus tax, so $108.75 for example. Now it was mentioned that a portion of that will go to the school and to NWAV. But how? If the retailer is NOT a partner, then the store will of course require all of the $108.75 to complete the purchase. Are you following me? This means that, for non-partners, there are two plausible realities:

1. The donation will have to be an ADDITIONAL percentage on top of the total you spent. Let's say it's 3%. But this leads to another complication, coming up with the correct percentage. Since tax varies everywhere, I would assume the donatable portion use the total price + tax the card user spends.

But this is an issue in and of itself.

Let's say a consumer uses the card to spend on her groceries every month, for 12 months. At the end of the month, let's say she's spent 22,000 dollars. Let's assume that only $2,000 was spent on partner retailers, leaving $20,000 left over. I will use 3% as I've not seen anything specific yet.

At the end of the year, she must spend an extra $600 to donate the 3% to the school. This, if you haven't guessed, MAY be an issue. Because she also likely pays school taxes, and they likely aren't cheap. So let's remove the card from the equation and replace it instead with a jar near the cash register.

The jar says "donate to such and such". How many of us have seen this jar before? Let's think about it. Do we donate every single time we come back and see the same jar? For ME, the answer is "no".

Now let's take this concept and flip it back into the card. If we KNOW our card is going to withdraw an additional 3% from our own money every time we use it, would the customer be excited to use it, or will it soon be replaced by the credit card, which offers discounts, delayed pay and reward points?