Recurring and One-Time Authorizations
Many charities and 501(c) organizations get recurring pledges or authorizations from donors who want monthly billing. In the same manner that United Way takes a deduction from each paycheck, it is possible to debit a card on a monthly basis based on a pledge amount.
When your nonprofit sets up card processing services, it is important to let your agent know how cards are typically accepted. You may only need a cretit card terminal, but in some cases you could use advanced solutions like payment gateways for websites, phone (MOTO) accounts, or donation kiosks.
Check acceptance
Transactions and authorizations for non-profits are usually favored by card processors because they are less likely to experience chargebacks and disputes. Likewise, check processing is also an easy fit. Whether you need to attach a check reader to your credit card terminal will be determined by the demographic of your donors, but in some cases the ability to verify balances could be a major boon to your organization.
Merchant Accounts And Fees
In some cases the bulk of your merchant account fees could be waived if you have a non-profit organization, but there are usually some costs associated with keeping the account active. Processing has become a much more competitive industry, and therefore costs have been slashed over the past few years, so the difference between retail processing fees and non-profit merchant services may be a lot smaller. You could see statement fees, monthly minimum charges for failing to take in a certain threshhold of dollars by way of the credit card terminal, and fees for payment gateways or credit card terminals. Visa and MasterCard have a base rate known as Interchange, which is the minimum that a card can be charged. All processors will mark up this rate in order to pay for the costs associated with security and keeping their own lights on. Your ideal processing solution will make sure you get timely receipt of funds (often next-day) and stay secure. Accepting debit cards with PIN numbers is a great way to cut expenses related to processing. While there is significantly less fraud associated with nonprofit processing, any in-person transaction will be cheaper if it is swiped through a machine. Consulting with your merchant services provider will help you get the best possible setup to take cards quickly and conveniently.