You can use a nonprofit credit card processing service to help you collect funds for your nonprofit organization. Your processor can help you collect donor data and payments in moments. Some nonprofit credit card processing solutions can support online donation forms, helping you collect funds with ease.
You can use a processor to collect payments through credit cards, smartphones, or tablets. You can also accept them through a website if you don’t have a physical presence anywhere. Some processors can also support text-to-give services and other solutions that provide simple payment functions. You’ll have an easier time collecting funds for your nonprofit efforts when you use a suitable card processing service.
You must also review the possible costs associated with hiring a nonprofit credit card processing company. You may qualify for better rates because of your nonprofit status. But the charges can be substantial and could keep you from collecting as much money through donations as you wish.
Every card transaction is subject to interchange rates. Nonprofits can qualify for reduced rates because of their unique operational efforts. You could get a reduced rate through a processor, but there are no guarantees you will get something of value.
You may be subject to higher charges if you manage more CNP transactions. A card-not-present or CNP transaction occurs through online donations. Since the customer does not present a physical card to you, that transaction carries a slight risk. There is a chance the person completing the transaction isn’t the right person, but rather someone who found access to a card.
Nonprofits often collect funds online, forcing them to accept CNP transactions. Expect to spend more on your card charges if you keep collecting these payments.
You may also find various fees surrounding your nonprofit credit card process needs. Some of these fees include:
- Compliance fees for supporting a network
- Statement fees for reporting purposes
- Cancellation fees; the transaction would have to be cancelled before the funds most to your nonprofit’s merchant account
- Charges to access a payment gateway
Can You Get a Discounted POS Setup?
You may qualify for a free or discounted POS system if you run a nonprofit entity. Some equipment may be sent to you for free to use for as long as necessary. The only stipulation is that you’d have to ensure the equipment remains in good condition and that you return it after you finish using those items.
The rules for what you’d spend on a POS system will vary by provider. Check the rules for what works, and avoid leases if possible. You may spend more on equipment through a lease than necessary, plus you won’t have the right to keep what you use in this situation.
Take note of what you’ll come across when looking for a nonprofit credit card processing team. Be certain you can find a choice that fits your needs and that you can afford whatever someone might wish to provide to your business.