Credit Card Processing Options For Your Non-Profit

It's necessary for a non-profit organization to provide numerous credit card payment choices to potential donors. It ensures that the donors will pay conveniently. There are many choices accessible today. They can be broadly divided into 3 categories:

Open a Merchant Account

The non-profit will open a merchant account with a bank or a credit card company. The advantage of this account is that when a donor makes a payment through credit card, the money goes directly into the non-profit's bank account. The advantage here is that when the donor receives the credit card statement, the name of the non-profit can be mentioned on it. This account helps to reinforce a dead ringer for the non-profit.

But the downside of this feature is that formalities and paperwork could be elaborate. The non-profit will be treated like every other business organization and can bear similar checks and verifications. The second disadvantage will be the difficult fee structure, which may conjointly vary widely from one bank to another.

Use a Third Party Processor

Wherever the non-profit is unwilling to choose a merchant account, it might choose a 3rd party processor. Such processor will have its own merchant account that can settle for donations on behalf of varied affiliated organizations, together with yours. The processor will receive the payments, and forward them to your account. It can charge a processing fee for providing this service, and therefore the funds could take a slightly longer time to achieve your account.

A disadvantage of this option is that the donor's credit card statement will not show the name of the non-profit that has truly received the donation. In bound cases, the donor could not appreciate this reality and could register a protest with the non-profit. But, this example can be avoided if the non-profit duly informs its donors about the name that they will be seeing in their mastercard statement. Paypal could be a good example of a industrial third party processor that gives such services to non-profit organizations.

Use a Customized Credit Card Processing Program

There are various mastercard processing programs specially designed for non-profit organizations. They operate simply sort of a merchant account, but usually offer many additional price added services as well. A number of these services embody client relationship management, and seamless integration with the non-profit's website and banking system. Such programs are bespoke for fund-raising purposes only. DonorPerfect is a wonderful example of such a program.

The advantage of this feature is that the non-profit keeps an instantaneous control over the donor payment. The donor never gets to understand regarding the processor. Furthermore, such a program improves the money management and efficiency of a non-profit that receives multiple donations regularly.

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