Forget Visa? Do you take "Revolution Money"?

No, it's not a credit card for anarchists (what an oxymoron!). "Revolution Money" is a new online banking and credit card system founded by former AOL, MasterCard and government bigwigs that hopes to upset MasterCard and Visa.

Steve Case, founder of AOL, has partnered with Ted Leonsis (Washington Capitals hockey team owner and former AOL Vice Chair), former U.S. Treasury Secretary Larry Summers; former Charles Schwab CEO David Pottruck; and former MasterCard international president Russell Hogg. According to the Washington Post article, they plan to drastically undercut the percentage of each transaction that MasterCard and Visa take (the article said 0.5% instead of 1.9%). There's a more meaty article at TechJournal South.

So, does it make sense to become a Revolution Money merchant? One the one hand, they say they hope to have 100,000 cardholders in the next few months, but grow to over one million in a year. That's not much of a dent in the credit card market. On the other hand, Ted Leonsis helped form Network for Good back in the day, so we bet he'll make some rapid inroads into the donation processing market.

Just the name "Revolution Money" will appeal to the younger, online crowd (not that they've replaced their grandparents on the top of the donation pyramid yet, but they will someday).

So, check it out. While we're at it, let's get your opinion: Does PayPal make a difference in your donation processing? We've tested it with one client and seen that it makes a marginal increase in donations. What about you? Please comment.