Did you know that if nonprofit organizations were a country, their economy would be the fifth-largest economy in the world?
With over 1.5 million nonprofit organizations registered in the United States alone, private foundations and public charities dedicated to serving the public are definitely on the rise. It is important to manage and process the financial information of donors, and the act of processing the transaction between the donor and the nonprofit organization is referred to as nonprofit payment processing. If you are looking for a new payment processor for your nonprofit organization, you should fully understand the payment processing for nonprofits to begin with.
In this article, we will delve into the different features and factors you should take into account when picking the payment processor appropriate for your respective businesses.
Almost every payment processor will charge your nonprofit organization transaction or processing fees for each transaction or donation. Usually charged as a percentage of the total transaction along with a flat rate, the transaction rates can reduce the amount of revenue you receive. Take the time to search for payment processors with the most reasonable rates, and keep an eye out for those which provide discounts for nonprofits. You can also consider billing these transactions or processing fees to the donors themselves to reduce the losses incurred from these donation streams.
Forms of Payment
Each payment processor accepts a different range of payment options for the donations being sent into your organization. Even if the transactions into your organization occur online or at your physical locations, the forms of payment your processor can accept would not vary, and hence picking the correct processor for processing your payments is of utmost importance.
Focus on the payment forms important for your organization. Be it major payment forms like Visa and Mastercard, pick the processor that can create the most convenience for the donors contributing to your respective nonprofit organization.
ACH refers to the Automated Clearing House system, whereby payment processors are able to utilize it to transfer money to and from bank accounts between the donor and your nonprofit. While most payment processors use ACH systems to transfer funds between both parties, not every account is compatible with this system. If you intend to save on transaction fees through the use of processing payments with ACH, do check to ensure that your payment processor is capable of supporting this mode of payment.
While most transactions and donations made in this day and age occur through your webpage, there would be times in which you need to accept these donations in person. Hence, it would be important for your payment processor to be capable of receiving these payments physically. Having the appropriate devices such as credit card terminals coupled with additional fees involved in these transactions, you should consider your payments processor's ability to support the point of sale transactions occurring in the operations of your organization.
Payment Made Easy
Nonprofit payment processing is essential in providing donors with a convenient and efficient way to support your organization's efforts. At Millennium Payment Systems, we provide our merchants with the most advanced and cost-effective payment processing services in the market. Contact us to find out how we can maximize your nonprofit's potential!