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.