Credit card usage has increased exponentially in recent years with the fastest growing groups, including Generation X, Z, and millennials. In 2018 Transunion reported 416.5 million credit cards. Nonprofits have reported a substantial increase in credit card donations due to covid, the war in Ukraine, and many international disasters that received support. Nonprofits rely on credit card donations to increase cash flow and support their programming.
While it is easy to understand the need to accept credit card donations, picking a credit card processor (“A credit card processor acts as an intermediary between your business and your customers’ credit card companies”) is complicated.
While it is easiest to use the processor offered by your web hosting company or bank, fees and services vary widely and can greatly impact your net credit card donations over one year. Other things to consider:
1. Cost and fees
2. 24×7 technical support
3. Easy to understand bill
4. Security and fraud protection
5. PCI compliance
6. Customer support
You have to balance cost, ease of use, support, features, and functionality. This article by Candid.org was written on the subject that provides additional things to consider.
Another major consideration is whether to pass the credit card processing fees along the customer/donor in the form of a convenience fee and/or cash discount program.“This will essentially allow the Non-Profit to save on most of the credit card related fees “according to Bruce Patz of PCM payments.
Matchbooks is a virtual bookkeeping and consulting company. We help companies like yours make more informed decisions, increase cash flow and improve daily operations. For more information, contact us at consulting@matchbooksusa.com.