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Aug 28, 2024 · Our payment processor definition. Online payment processors are the middle-person between your donors' bank account and your organization's account. Once you've paid for something with your digital funds, a nonprofit payment processor handles the actual transfer of funds, making sure the money gets where it needs to go, quickly and securely.
Processing fees are fees that a nonprofit pays for a company to process a transaction. Flat fees are charged monthly or annually and they are paid so you can work with the gateway, processor, or aggregator. Incidental fees are charged for incidents that occur, such as if a donor’s credit card is declined.
Nonprofit payment processing, also known as credit card processing or an online payment system, is the processing of donors’ financial information whenever they make an online transaction with a nonprofit organization. Any nonprofit that relies on online fundraising will need to have a payment processor to collect donations online.
Donation is Sent to the Merchant Account. After the credit card has been verified, the payment gateway starts the transfer process. The donation goes from the credit card company to a merchant account. The merchant account only holds credit card donations, and many nonprofits can open one through their regular bank.
- Stripe. Stripe is the top payment processor for nonprofits because it accepts all major credit cards and over 135 different currencies. Through API integration with your nonprofit CMS, donors can simply enter their credit card information on your website’s donation form and their payment information will automatically be passed along to Stripe for processing.
- iATS Payments. iATS Payments is a payment processor specifically for nonprofits. For over 20 years, iATS Payments has allowed nonprofits to collect online donations securely and efficiently.
- PayPal. PayPal is a top payment processor because it is so well-known. If your donors are located in North America, chances are, they already have a PayPal account.
- WePay. WePay offers quick and easy integrated payments. The payment processing is handled by Chase, a top financial institution serving nearly half of all households in the United States and four million small businesses.
Aug 19, 2024 · When choosing a credit card processor for your nonprofit, consider these essential features: Fees: Payment processors charge transaction fees. The industry standard fee is 2.9% plus $0.30 per transaction. While this fee may vary, nonprofits might be eligible for discounts.
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Oct 5, 2023 · Steps in processing a credit card donation: First, the nonprofit will take the donor’s credit card information. Next, the credit card processing system will give the donor’s credit card information to the payment network. The payment network will then request authorization from the donor’s bank. The donor’s bank will then validate the ...
