With technology advancing, the world is changing fast. It’s not only businesses that need to keep pace with modern expectations and transform payment options. Just as online shoppers rely on fast and secure digital checkout processes, donors expect speed and efficiency when giving to their favorite causes. Nonprofit leaders need to monitor the effectiveness of their payment system for one simple reason: It determines the longevity of their organization.
Process Every Payment Through the Same System
Imagine donors raving about being a part of your organization. Word of mouth is one of the most powerful forces that drive growth for nonprofits – especially smaller ones. Without a smooth and intuitive payment experience, donors are likely to become frustrated or confused. Worse, it can lead them to abandon the checkout process altogether.
One study found that people are likely to spend 12-18% more when using a credit card instead of cash. Another assessment was even more surprising, showing the average cash transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... was valued at $22 while the average card transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... was $112 – 409% higher.
For this reason, a quick and easy branded payment portal is a no-brainer for organizations that want a digital presence and steady revenue. Whether you’re collecting donations, selling event tickets or merchandise, or receiving monthly or yearly membership fees, credit card processing is vital for sustainable revenue. With one unified payment portal, your donor data is safe from cybercriminals and consolidated in one easily-accessible vault. Credit card processors use sophisticated encryption making it harder for criminals to hack into private information.
Avoid Excessive Fees
Credit card processing fees have been climbing steadily over the past decade, with companies like Visa and Mastercard inching their rates upward. From 2009 to 2019, these two companies alone more than doubled processing fees from $25.6 billion per year to $67.6 billion per 2019.
One way around this is partnering with a credit card processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... that facilitates ACHAutomated Clearing House (ACH) is an electronic payment Network that exchanges funds via Electronic Funds Transfer (EFT) throughout the U.S. Over 98% of the nation’s banks including the Federal Reserve belong to the ACH. ACH is the paperless funds transfer system maintained by the Federal Reserve or other entities that have networks to exchange electronic funds transfer items.... debit payments. When donors give straight from their bank account, it’s akin to an electronic check. While there will still be a small fee associated with ACHAutomated Clearing House (ACH) is an electronic payment Network that exchanges funds via Electronic Funds Transfer (EFT) throughout the U.S. Over 98% of the nation’s banks including the Federal Reserve belong to the ACH. ACH is the paperless funds transfer system maintained by the Federal Reserve or other entities that have networks to exchange electronic funds transfer items.... debit payments, you’ll still be saving money compared to a credit card transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.....
For nonprofits, every dollar counts. Partnering with a credit card processing company that understands the unique challenges you face can provide a much-needed leg up in a world of increasing fees. A reliable credit card processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... will ensure most transactions are deposited into your organization’s bank account within a few days.
Integrate with Online Giving Tools
Nonprofit leaders are sometimes hesitant to make big changes to how they operate. If you’re smart and risk-averse, these traits probably got your organization to where it is today. However, there is danger in being too unwilling to upgrade and modernize the way you collect donations and interact with your community.
Credit card processing companies are well aware that nonprofits rely on specific tools to survive. Things like text-to-give, mobile applications, donor kiosks, and website donation buttons are some of the most common avenues today’s donors use to give. For this reason, integrations with various popular tools are becoming more common.
Build a Brand Donors Can Trust
While it may be unfair, nonprofits are scrutinized much more closely than businesses. People are more concerned about where their dollar is going, how effective the organization is, and how much is spent on overhead. For this reason, the more transparent and trustworthy your nonprofit brand is, the more donors will happily fund your mission. Payments are a profound way nonprofits secure trust, and ease throughout the giving process may even inspire donors to give more.
Reputable credit card processing companies also provide PCI Compliance Benefits. PCI DSSA set of twelve high level requirements and more than 230 sub-requirements that detail the way in which each objective should be met. This is the guide to avoid security breaches and cardholder compromise. (Payment Card Industry Data Security Standards) Compliance is required for all organizations accepting card payments.
NMA handles this by walking members through the simple two-step process of becoming PCI Certified. From there, an annual self-assessment is provided to help you stay compliant.
Choosing What’s Right for You
Depending on how your organization is run, you may opt for a fully customizable POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. system, a digital payment portal, or both. The most important step in getting started is to identify what your organization needs to sustain itself – plus, what it needs to grow. Don’t be afraid to think ahead to where you might be in 1-5 years.
While accepting cash or payments through platforms like Paypal may work for a while, you will lose donors in the long run. Those who don’t carry cash or don’t wish to log into specific platforms will likely skip the inconvenience and decide not to donate. Over time, these little losses can add up to major setbacks and prevent your organization from reaching its highest potential.
With online payment options multiplying and transactional fees soaring, giving your nonprofit the best shot at success means getting support. An experienced merchantA business that accepts credit cards for goods or services. services provider can equip you with cutting-edge fraud protection and advice from payments experts. As you grow your organization, having experts on your side can be reassuring, especially in challenging times.
How It Works
Your payment processorA large data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services.... is put to work when a donor gives or makes a purchase from your organization. They are led through a simple step-by-step process, inputting their information and selecting either debit or credit for the transactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account..... This can be done on a smartphone, computer, or tablet.
Once their information is submitted, the donor is automatically taken to a payment gatewayA payment gateway is a combination of hardware and software that provides merchants with the ability to perform real-time credit card authorizations from a website over the Internet. It’s the link between a merchant website and the processor.. Payment gateways are designed to scan payment details to detect problems, such as suspected fraud or insufficient funds on a card. Payment gateways are your first and most powerful line of defense in making sure money is received safely.
Once the payment is complete, donors can automatically be added to a database with the help of your merchantA business that accepts credit cards for goods or services. services provider. Databases store critical information about your donors, like names, phone numbers, and addresses. This data, when organized in one place, can be used for any number of projects & promotions throughout the year. Keeping tabs on who donates and how often can give you critical insight into your donor base that can’t be found elsewhere.
Partner with a MerchantA business that accepts credit cards for goods or services. Account That Works for You™
NMA offers special perks to nonprofits that are motivated to help their communities. As high-risk payments experts, NMA has advocated for small businesses and nonprofits for more than 15 years. Our Give It Back program has given businesses and nonprofits a simple way to support themselves and bolster their communities since 2004.NMA provides credit card processing for nonprofits and one-on-one support from payments experts. We Work For You™ to make all transactions simple and secure. With additional benefits like pre-chargeback mitigation, equipment coverage, and tech support, NMA membership is the easiest way to nurture your organization & ensure a loyal donor base year-round. Learn more about how what we offer.