Apr 16, 2013
Launching an online donation page as part of a multichannel awareness and fundraising campaign can open new doors to gifts and supportive donors. Taking the time to adopt a digital platform that offers information as well as electronic payment processing technology makes it easier for donors to learn about an organization and offer contributions from a convenient location.
With all the benefits of an online donation page comes responsibility as well. Online payment processing portals are able to collect financial information to enable a transaction remotely. The technology, however, it not immune to fraudulent behavior or data breaches when left insecure. Nonprofits must research the available online payment gateways that would best suit their needs, as well as associated protections and fraud safeguards to avoid falling victim to a scam or other external threat.
Billions lost in 2012 to efraud
CyberSource's 2013 Online Fraud Report revealed online fraud increased over the past two years, totaling an estimated $3.4 billion lost for organizations with online payment processing technology in 2011 and $3.5 billion in 2012, up from $2.7 billion in 2010. Despite such significant amounts of money lost to fraudulent behavior, only 0.9 percent of total online revenue was gone in 2012, down from 1 percent in 2011. Thus, plenty of scams were deployed, but the vast majority of online transactions were safe and successful. These figures indicate both a need to invest in online payment processing to support a donation page, as well as to keep donor information secure from theft.
Disruptions predicted for 2013
According to Forrester's Three Disruptive Payment Trends in 2013 report, new patterns are arising that will have an impact on payment models such as the rise of digital wallets and alternative financial services for unique consumer populations. These trends will likely alter the way online organizations are able to complete transactions, prompting the adoption of more sophisticated payment processing technology to support the increase in options for donors.
While it may sound expensive to invest in new payment processing if a donation page has already been established, many organizations are discovering the new options are often more affordable than traditional platforms and offer increased value to both donor and nonprofit. Mobile digital wallets, for example, are extremely cost-efficient, require minimal resources to launch and will make it even easier for donors to contribute while on the go. Furthermore, nonprofits can use mobile digital wallet payment processing technology to enhance traditional fundraising events by accepting payments via smartphone applications that can complete digital wallet transactions.