If your organization plans fundraising initiatives online, you’ll want to accept credit cards. Accepting credit cards online means that your organization can receive donations promptly without the need to deposit checks or wait until a fundraising event to receive payment. As well, many donors give more and commit to recurring gifts when given the opportunity to donate with a credit or debit card.
Opening a merchant account allows organizations to process credit cards online and receive funds directly into a designated bank account, usually within two to five business days. Enabling nonprofit credit card processing can save your organization money by not paying a third party for these services.
Nonprofits Process Credit Cards for Many Reasons
Why do nonprofits need a merchant account? There are many reasons, but here are the main ones:
- Registration and ticket sales
- Product sales
- Sponsorship sales
- Online donation campaigns for schools and organizations
- Monthly memberships or dues
- Recurring giving campaigns
- Peer to peer fundraising campaigns
- Fundraising initiatives of all kinds
Mobile Credit Card Processing for Events
Many processors offer mobile nonprofit credit card processing via credit card swipers. Card swipers attach to a mobile phone or iPad and are ideal for fundraising events where organizations need to quickly and securely process registrations, donations, and product sales. Organizations may need to purchase multiple swipers for use at event check-in and various event stations, adding yet another way your merchant account can bring in additional revenue for your school or organization.
Credit Card Processing Fees
Credit card processing fees are the most basic costs for your business or organization when processing credit cards. There are several fees to consider here. The most important fees are the rates you will pay per transaction, as well as any applicable monthly or annual fees. Many merchant accounts are billed a monthly merchant services statement charge as well as an internet gateway fee. You want to make sure that you partner with a company that has low credit card rates and monthly fees so you can keep more money.
You’ll find that credit card processing fees are not very straightforward, and there are hidden tiers or points, early termination fees, and more. Be sure to ask and review all disclosures.