Jul 2, 2013
The payment processing industry is changing the way people use credit cards and spend money. Recent technological innovations are improving online payment processing services, incorporating a multidimensional transaction strategy and addressing security issues. Nonprofits are using payment solutions for online donations and can benefit from the advances that new technology can offer. When filling out donation forms, supporters are looking for a quick and easy payment experience and organizations should be doing all they can to streamline the process.
What the statistics say
A survey by a payment solutions organization showed that credit card processing may be used less in the future and will be replaced by digital payments, such as online transactions and mobile purchases. Europay, MasterCard and Visa (EMV) changes are having a direct impact on how people manage their finances and carry out transactions. Many may turn to digital processing, and organizations and banks alike will need to accommodate these trends to offer better experiences for users.
In doing so, organizations may face the challenges of installing new hardware and updating payment processing systems, training employees to handle transactions and educating people on how to improve their own experiences and comply with the technology.
Direct debit playing a big role
Many organizations may already be working with what is called direct debit or automated clearing house (ACH), and those that aren't may move in the direction of these services. Today's consumers are hesitant to start new credit cards and stick with paying directly from their bank accounts. For the most part, this is an added benefit for charitable foundations, as the transaction fee is the same for every donation amount, making the option cost-effective for both donors and the organization. It is also possible that rejected transactions will become less common because of less-frequent bank account switches and non-existent expiration dates.
Though gift-givers may be wary of offering their bank account information, nonprofits can make sure to communicate the security and safety of making such direct debit payments and how debit transactions will affect their overall donating experience now and in the future.
Why nonprofits need to pay attention
Nonprofits benefit from the ability to accept online donations and offer supporters an opportunity to not only give monetary gifts over the Internet, but also interact with the organization's community on the Web. There are a variety of ways to get people interested in a cause and start an online fundraising program, but the most important thing charities have to remember is to be able to support online giving habits. More donors are turning to the Internet to offer financial support, and if organizations aren't able to keep up, they may lose their funding.