Whether you’re running a charity or a non-profit organization, it pays to give your contributors and backers as many options as possible to donate their hard-earned money toward your cause. While many companies accept credit card payments despite the fees attached to them, these companies are happy to take on the cost, because they provide their customers with the easiest way possible to spend their money. Online credit card processing is the most convenient method one can offer their supporters to make donations with their credit and debit cards through your website. Let’s look a little deeper and better understand what goes into accepting credit cards online.
Credit Card Processing Fees
With plenty of different options, it can be difficult for a charity or NPO to choose the best one for their needs. However, knowing the right option for your organization can have a substantial impact on the amount of each donation your organization keeps. Many charities have turned to PayPal for their credit card processing needs, largely due to it being one of the most recognizable names in merchant services. However, there may be other services available that can offer your organization better rates. If you’re running a charity, you want to find low rates to ensure a contributor’s donation goes to your cause.
Many companies have sprung up in an attempt to enhance the types of services PayPal offers, so there are plenty of options, even in areas we may not expect them. If your organization is already using Intuit software, for example, you can also accomplish credit card processing with QuickBooks. However, if you don’t use accounting software at the moment, options such as WePay also provide you with significantly reduced rates compared to the 4% PayPal typically charges per transaction. With PayPal, a $100 donation becomes $96 of useable spending money for your organization after fees. But with other services offering fees between 1 and 3%, you can quickly see how these fees add up and can detract from your received donation.
How it Works
Before you pick your merchant services provider and sign a contract, you need to fully understand how the process works. By acquiring a merchant services account, your organization will be able to decide just how long the donation process works. Merchant services allows an organization to create an online payment/donation gateway that will allow your supporters to provide their credit card information directly to your website. This is a perfect solution to increase donations if you’re already in the midst of a marketing campaign that is driving additional traffic to your site.
If your charity is in dire need of increased donations, the options your merchant services provider can offer are much more advantageous for you than you might think. Donations will be sent to a secure website that will then be passed along to your merchant services account. You will then be able to withdraw the money from your service provider, or have it wired to your organization’s bank account. As an additional bonus, some service providers will allow you to accept donations from a supporter’s bank account instead of their credit or debit card. What’s the bonus of this? Well, for the most part, merchant services providers charge a significantly smaller percentage when you receive a donation from a supporter’s bank account. These fees are usually around 1% of the total donation, meaning your organization is truly gifted with nearly the entire donation made.
In the end, your goal should be to make it as simple as possible for anyone to donate to your organization. If you’ve ever tried to donate to another charity, or have even attempted to make an online purchase, only to have your experience end in immense frustration, you know how dire it is for your organization to be fully-functional. Don’t allow one more donation to pass you by; do the necessary research and find the right merchant services provider to allow your charity receive as many donations as possible.
This is a guest post by Bradley Derringer, a blogger for TechBreach, giving you the latest on all things tech.