Non-Profit Credit Card Processing
There are several reasons why cash is generally unpopular for donations while credit cards are popular. Credit cards offer a record for donors to use when they do their taxes. Credit cards offer an incentive or some sort of rewards program for usage. Credit cards can be automated donation payments that happen every month or year. So your chances of getting donations could be higher when you offer credit cards. Credit card payments can mean less work for the non-profit as well. You may be able to partner with the credit card company or bank that issued the credit card to your donor. So there is likely some form of cooperation you can achieve when the bank or credit card company knows that their customers are also your donors. Credit card payments can mean less work for your organization. Credit card and debit card based donations can mean more donation volume for you as opposed to cash only donations. Bank that issue credit cards and the credit card companies themselves might be willing partners for some cooperation for your non-profit. If you are a nonprofit organization, you can sometimes reduce your credit card processing rates just by asking your payment processor. Credit card processing fees can change a lot depending on the company that does the processing and how the processing is handled by the provider. All card payments are assessed an “Interchange” fee. These are fees paid to the banks that issue credit cards to your customers and the fees paid to the credit card companies. Look in our diagram and you’ll see the parties involved in a credit card transaction. You’ll see your customer, you the merchant, bank processor and then the credit card network followed by the bank. Interchange fees are set and are generally non-negotiable and these fees are paid to the bank who issued the credit card to your customer and to the credit card network. If you already accept cards, ask your processor about ways to lower your rates. You may need a USB card swiper to plug into your computer.