There are some credit card processing companies that offer services for credit card
processing in non-profit organizations. Since nonprofit organizations are not about making
money, the fees charged for credit card processing may cause a strain in the activities of the
organizations. These organizations still need to accept donations through secure and
flexible channels, one of them being through credit cards. Donors are always paying bills,
buying food and shopping using their cards; they will definitely use the same when making
donations. Non-profit organizations still have to keep PCI standards when accepting these
There are several options for non-profit organizations when it comes to handling credit
card processing fees without putting a dent in their donations.
Third party processors
Most merchants use third party processors for processing credit card transactions within
the business. Third party processors have their own merchant account where the funds
from the transactions are collected. Non-profit organizations can use third party
processors to accept donations where the cash will be collected to the third party account
and then forwarded to the organization minus the processing fees with a little delay.
The problem with using third party processors to process card payments is the name that
will be recorded in the donors card statement will be of the third party company and not
the nonprofit organization and this can raise some concerns and confusion with the donor.
In some cases, donors have come to protest these charges and this leads to charge backs.
Setting up merchant account
Setting up a merchant account is the best option for a nonprofit organization because the
name that will show up in the donor card statements will be that of the organization. The
major concern with setting up a merchant account will be the cost of set up and transaction
fees. There are some programs with special packages for non-profit organizations in order
to reduce the cost of managing their transactions. You can find the most suitable through
Some of the features of favorable Nonprofit merchant services include:
1. No complicated contracts, no penalties
There are some merchant service providers who offer simple contracts for NGOs
with no hidden costs of penalties. Normally, businesses are often penalized for
terminating the service earlier than stipulated by the contact. However, if the NGO
fails or meets its targets in donations, they can cancel the service without any
2. One rate transaction
Rather than charging different transaction rates for qualified, mid qualified and non-
qualified transaction, the merchant service can charge the same rate for all
transactions and all cards. This makes it easier to accept donations from all over the
3. Integration on different processing modes
You do not always have to keep a card reader with you. If you are receive donations
from all over the place, you need to work with a merchant processor who can give
access to process payments through mobile devices, computers and card readers
depending on which is convenient for you at that time.