The complexities of payment processing may seem overwhelming for any nonprofit, especially when resources are already stretched thin.
Running a nonprofit can be complicated, but payment processing for nonprofits shouldn’t have to be.
Implementing online payment processing across the organization starts by being properly educated about the software and systems available and the technologies that will streamline your payments.
Inside the Flow of a Payment Processor
There’s plenty of reasons nonprofits need to collect online payments: Events, fundraising, memberships, gifts, donations and the sale of goods. Since so much is tied into your payment systems, having the right partner can make or break your ability to execute your objectives.
Four key elements correlate to how funds get into your nonprofit’s accounts via your online fundraising platforms.
- Online payments: By offering multiple payment methods online, your organization can gather funds quicker and more efficiently.
- Payment gateway: The donor’s information is entered into the online payment system and verified by the payment processor.
- Merchant account/Third-party payment processor: Before payments can be accepted; your organization needs a secure way to process credit card transactions.
- Transferring funds: When properly set up, a donation is transferred into your account within a few business days, or sometimes even faster depending on your payment processor.
Best Practices For Accepting Payments Online
There are three traditional methods for receiving payments online: Through a merchant account, payment gateway or a third-party payment processor. The choice can be made based mostly on the number and volume of transactions your nonprofit processes on a monthly basis.
For organizations processing a large volume of transactions, a merchant account may be the best route. Choosing this route often provides lower fees than relying on a third-party payment processor, but more information is needed to establish a merchant account.
Another way is by setting up a payment gateway. This allows credit card information to be processed through your site. You can also integrate a number of digital payment options into your gateway enabling you to accept all of the preferred payment methods of your supporters.
The alternative option to a merchant account is working with a third-payment processor, which can sometimes be an ideal choice for organizations processing a low number of monthly transactions. The fees for these services are typically charged on a flat rate per transaction.
While transaction costs tend to be higher with this route, setup is sometimes faster. In this scenario, a third-party processor manages the payment process using their merchant account. Many smaller nonprofits choose this option until they can establish their own merchant account or payment gateway.
By working with a Nonprofit payments partner, you’ll be able to easily add donation payment buttons to your website to quickly and securely accept donations online. In today’s digitally-driven world, donors expect reputable Nonprofits to have online payment options. It is vital that you provide quick and transparent methods to make online donations easy and we can help.
Picking the Right Payments Processing Partner
Choosing the right merchant account provider gives your nonprofit the ability to get paid faster. It enables a seamless way to accept credit cards, debit cards, and mobile payments online, over the phone or in person. You’ll want to look for a company that provides simple, secure and cost-effective payment integration.
Another feature to look for is the ability to process recurring and automated payments. Instead of always having to process one-time donations, you can ensure funds are consistently flowing regularly into the account with recurring billing. Be sure your payment processing partner can enable recurring payments across your payments software. Recurring billing is also a huge time saver and increases donor retention. Recurring donations are an incredibly valuable resource to any nonprofit.
Look for a payment partner who puts an extremely high value on security. This includes being fully PCI-compliant and relying on industry-leading security features like tokenization and fraud protection, to fully safeguard your organization. The right partner will help you increase cash flow, enhance your customer relationships and improve organizational efficiencies.
Your Nonprofit should look for a partner with transparent fees, diverse payment options and the ability to set up your organization with the latest solutions. At goEmerchant, we can help your nonprofit with payments, enabling you to do what you do best.
