As a nonprofit organization, there is no doubt that you rely mostly on your donor’s donations. With the rise of the internet and various technologies, you can now help a particular cause with the help of your nonprofit organization.
However, it is also vital that you know aboutnonprofit payment processing. It’s to guarantee that your donor’s personal information is secured.
Payment processing is rather complicated. That’s why you must do your research well and work with professionals who can further help you.
What is a Payment Processing?
Payment processing is when a donor does any transaction to your organization as a form of donation. It could either be by buying a product, paying a membership fee, or joining any event.
Your donor will have to fill up an online form. It commonly includes spaces for their name, and credit/debit card number. These are confidential information. For the safety of your donors, you need to find a reliable payment gateway and processor.
Once a donor does any transaction, athird-party payment processor will handle his/her information so their payment or donation will be processed into your bank.
Importance of Payment Processing
Payment processing is significantly vital as it allows you to accept online donations.
Nowadays, everything is done online. People are more likely to do a transaction than go to the bank and deposit the money. Hence, if your payment processing is accessible through the internet, the better.
Finding a Payment Processor
Finding a reliable third-party company is perhaps the most vital part of nonprofit payment processing.
Since your donor’s information goes through payment gateway, it should be in a secure server. That is one of the most vital factors you have to consider.
You typically need to have a merchant account. It’s the gateway between you and a merchant-acquirer which helps you accept donations online.
What Types of Payment Should You Accept?
Accepting both credit and debit cards is essential. It gives your donors a better chance of donating and paying for the transaction. However, it may depend on your payment processor whether they will accept these or not.
But don’t worry. These third-party processors typically do.
Additionally, you should know which banks they carry. It’s always best if they can take major cards such as Mastercard and Visa.
Most of all, the company you work with should be able to help you understand the process more. That means they should be easy to reach when needed.
Merchant Account Processing Fees
When you set up a merchant account, there will be several fees you have to cover. It includes the following.
- Per transaction flat fees
- Monthly service fees
- Network access fees
- Percentage transaction fees
- Chargeback fees
- Statement fees
- PCI compliance fees
- Annual assessment fees
- Business and International card processing fees
The exact amount is not specified as the fee depends on the processing value. Different merchant accounts may also have different prices compared to others.
Being a nonprofit organization does not mean it should be hard for donors to reach you. It’s best if they can easily do it, and they know they can rely on you to secure their information.