Collecting and coordinating group payments online has never been easier. Whether you’re planning a class trip, organizing a team event, or collecting membership dues, there are many free tools to simplify the process for everyone involved. This comprehensive guide will explore the best ways to collect money from a group online, ensuring seamless transactions and a hassle-free experience for everyone involved.
What We’ll Cover
- What Types of Online Payments Are We Talking About?
- 4 Best Ways to Take Online Group Payments
- DoJiggy: A Powerful, Free Platform for Organization Payments
- PayPal: The Classic Online Payment Choice
- Venmo: Online Social Payments for Friends and Family
- Zelle: Best for Free Online Bank Transfers
- Conclusions on Group Payments
What Types of Online Payments Are We Talking About?
Before delving into specific platforms and methods, let’s explore the landscape of online group payments. From splitting bills among friends to organizing fundraising campaigns, the requirements for collecting money online vary significantly. Here are some common scenarios where groups and teams need to collect online payments.
Social Events and Celebrations with Friends and Family
Sometimes, family and friends want to share expenses. Collecting payments for these items can be challenging since many family members live in other cities.
- Birthday parties and shared gifts
- Weddings and Bridesmaid’s parties
- Family reunions
Work Place and Professional Collaboration
There are also several ways that people collaborate on payments in the workplace. Considerations for these types of payments include transparency and professional interfaces.
Some of these include the following.
- Businesses and teams need to pool funds for team-building events or joint projects
- Professional associations need to collect dues
- Membership fees
School and Educational Institutions
While most US kids attend public schools without fees, extracurricular activities usually carry a fee. Schools need to collect payments for:
- Summer or vacation camps
- Extra classes
- PTO payments
- Troop fees
- Sports or arts programs
- After-school or daycare programs
Charitable Events and Campaigns
Nonprofits need to raise funds via special events and online campaigns. Fundraising and special events require a platform that encourages trust, security, and easy sharing across social networks. Some examples of these campaigns include:
- Online auctions
- Galas and concerts
- Charity golf tournaments
4 Best Ways to Take Online Group Payments
Let’s explore four of the best ways to collect money online, catering to these diverse needs.
DoJiggy: A Powerful, Free Platform for Organization Payments
For charitable causes and donation campaigns, DoJiggy is a dedicated platform that excels in online payments and reporting functionality. Organizations receive a free, donor-friendly website to customize and make a fundraising appeal.
DoJiggy is not a payment processor but a software platform provider. Users will set up a payment processing account with Stripe or PayPal to collect online payments, and organizations must have a bank account. Organizations can be nonprofits, foundations, businesses, or community groups. DoJiggy does not work with individuals or families wishing to accept small-scale group payments.
Here’s why DoJiggy is a powerful choice for group payments:
- Diverse Fundraising Tools: DoJiggy offers peer-to-peer fundraising, online raffles and auctions, event ticketing, online stores, and crowdfunding and donations campaigns. With all of these options, organizations can run diverse fundraisers throughout the year.
- Community Engagement: Participants and supporters can easily share campaigns on social media, expanding your organization’s reach. Leaderboards, fundraising thermometers, and community chatter get your donors excited about the campaign.
- Security Measures: DoJiggy verifies each organization on our platform to ensure the legitimacy of campaigns and foster trust among donors.
- Reporting Functions:
DoJiggy Fees
DoJiggy’s donation platform is offered free of charge with optional tips from donors. Organizations that wish to pay a percentage of sales instead of enabling donor tipping can also do this. Stripe and PayPal payment processing fees range from 2.2 – 2.9% and $.30 per transaction.
PayPal: The Classic Online Payment Choice
PayPal® has long been a go-to platform for online transactions and remains a versatile option for group payments. PayPal allows you to create a money pool where participants can contribute, but they’ll need to go to Paypal.com to do so. While PayPal is a trusted choice for personal and business transactions, there isn’t a customizable webpage to make an appeal or show exactly what you’re donating for. Also, reporting capabilities are lacking, which can be a limitation for organizations wishing to grow their donor base. That’s why users combine PayPal payments with a robust software platform like DoJiggy.
Key features of PayPal include:
- User-Friendly Interface: Setting up a money pool or sending an online invoice is quick and straightforward with PayPal.
- Security: PayPal’s robust security measures inspire trust among users.
- Global Accessibility: It seems like everyone has at least one PayPal account. PayPal is available in many countries, making it a viable option for international group payments.
PayPal Fees
PayPal offers free online payments when sending to friends and family. Fees apply if users buy or sell items or services or want instant bank transfers. Regular PayPal payment processing fees are 2.9% and $.30 per transaction and they offer a discounted rate to charities.
While PayPal offers easy currency conversion for international transactions, the conversion rates are quite poor.
Venmo: Online Social Payments for Friends and Family
Venmo®, a PayPal product, is a particularly popular online payment option among younger audiences. That’s because Venmo simplifies the payment process and adds a social element to transactions. Venmo allows users to split bills easily, making it perfect for social events. Venmo also works for businesses in the U.S. However, Venmo may not be suitable for larger transactions, and privacy concerns have been raised due to its default public settings.
Here’s why Venmo stands out for easy group payments:
- Social Integration: Users can add notes and emojis to transactions, enhancing the social experience among friends.
- Instant Transfers: Funds can be transferred to linked bank accounts within minutes.
Zelle: Best for Free Online Bank Transfers
Zelle® is a digital platform that allows users to send and receive money between U.S. bank accounts. With Zelle, payments can be made using an email address or mobile phone number, making it convenient for sending money to friends and family. It’s widely supported by major banks and credit unions, ensuring a secure and reliable way to handle personal and business payments effortlessly. Zelle does not work internationally or with credit or debit cards, just U.S. bank transfers. There is little reporting or visibility with Zelle, but you will receive money quickly directly in your bank account.
Zelle Fees
Zelle doesn’t charge users a fee to send or receive money. Its revenue comes from bank commissions. For this reason, it is recommended that you confirm with your bank or credit union that there are no fees for Zelle transactions.
Conclusions on Group Payments
The best way to collect money online from a group depends on your constituents’ needs and preferences. Whether you opt for PayPal’s flexibility, Venmo’s social element, or DoJiggy’s specialized reporting and fundraising tools, each platform has unique strengths.
Before making a choice, consider factors such as transaction fees, accessibility, and the nature of the group activity. Selecting the right platform and understanding its features can streamline the payment process, ensuring a seamless experience for everyone involved.
Related Resources
