Nonprofit organizations operate on different principles than for-profit companies, and as such require specialized payment processing solutions. While nonprofit organizations are not necessarily exempt from general payment processing fees, they may have access to certain discounts and cost savings options that other businesses don’t.
In this article, we’ll take an in-depth look at nonprofit payment processing, and discuss the various solutions available to your organization. We’ll explain how merchant accounts work and reveal which services are best for various types of nonprofits. We’ll also go over some tips for getting started with nonprofit payment processing.
What Is Nonprofit Payment Processing?
Nonprofit payment processing is the process of accepting payments from donors, members, and other contributors. These payments can be one-time donations, recurring membership fees, or event registration charges. Nonprofits need a way to process all these transactions securely and efficiently.
Nonprofit payment processing involves using a merchant account with an online payment processor or credit card processor. When someone makes a payment, the funds are transferred to the merchant account. It’s then up to the nonprofit organization to transfer those funds into their own bank accounts.
How Does Nonprofit Payment Processing Work?
Every nonprofit organization needs a merchant account with an online payment processor or credit card processing service. The merchant account is linked to the nonprofit’s bank account, and serves as a middleman for all payments.
When someone makes a payment to the nonprofit organization, their information is securely processed and the funds are transferred from their card or bank account into the merchant account. From there, it’s up to the nonprofit organization to transfer those funds into their own bank account.
Nonprofit payment processing services also offer features such as fraud protection, automated recurring billing and donation tracking. These features make it easier for nonprofits to track their donations and membership fees, as well as manage their finances more efficiently.
What Are the Best Nonprofit Payment Processing Services?
The best nonprofit payment processing service for your organization depends on your specific needs. Here are a few of the top services to consider:
- PayPal: PayPal is one of the most popular payment processing services for nonprofits. With PayPal, you can accept payments via credit cards and debit cards, as well as through bank transfers and eCheck payments. Plus, PayPal offers fraud protection and chargeback prevention, as well as the ability to set up recurring payments.
- Stripe: Stripe is a popular payment processing service that offers low transaction fees and access to advanced features like fraud protection and automated recurring billing. Stripe also integrates with many popular nonprofit donation platforms, making it easy for nonprofits to process donations quickly.
- Authorize.Net: Authorize.Net is a robust payment processing service that’s ideal for larger nonprofits or those who need advanced features such as fraud protection, automated recurring billing, and subscription management. Authorize.Net also integrates with many popular nonprofit donation platforms and offers competitive transaction fees.
- Square: Square is a great option for smaller nonprofits that need an easy-to-use payment processing service. With Square, you can accept payments via credit cards, debit cards, and bank transfers. Plus, the service offers competitive transaction fees and integrates with some popular nonprofit donation platforms.
Nonprofit payment processing is essential for any organization that wants to accept donations and membership fees. With the right payment processing service, nonprofits can securely and efficiently process payments from donors, members, and other contributors.
The best nonprofit payment processing service for your organization will depend on your specific needs. Be sure to do your research and read reviews before selecting a provider.