Anchoring 1 - Why to support online donations?

Anchoring 2 - Select a Payment Processor

Why should nonprofit-focused businesses have a plan to support customers in accepting online donations?

Online donations are everywhere.

Online donations are convenient, accessible, and engaging—it's no wonder they're so popular! Because online donations have become so widespread, your nonprofit customers need to develop a long-term strategy for utilizing online fundraising methods in a smart, sustainable way.

Nonprofits need to know their options.

Some of your customers might opt for the quickest payment processing solution rather than taking the time to learn how online donations work, consider their options, and determine the most effective path. It's your responsibility to make sure your customers are educated so they can make the best choice.

Your nonprofit customers trust you.

Your nonprofit customers are the most important relationships you have, so it’s important for your business to know how to advise them toward choosing an experienced, reliable processor. By helping them grow their organization, you'll emphasize your trustworthiness (and retain more customers!).

How do you go about selecting a payment processor?

As you start shopping around for a payment processing solution, consider the following questions.

Can't businesses just use PayPal to process payments?

While PayPal can serve as a quick, easy-to-get-started-with payment processor, it’s not a sustainable solution for most businesses.

Being an aggregator account, PayPal stores all of its partners’ transactions in a huge shared merchant account. That means your customers will be at a higher risk for interruptions, fraud, and other headaches.

Are some processors more secure than others?

In general, online giving is very secure! Thanks to security measures like tokenization and encryption, fraudsters are finding it harder and harder to steal donor data and use it for their own purposes.

However, there is some risk whenever funds are transferred electronically. 45% of all U.S. credit card fraud occurs online.

Look for a payment processor who adheres to PCI compliance standards and makes use of fraud protection tools to minimize your customers' risk of fraud.

What fees will my payment processor charge?

The answer to this question depends on the type of donations that you accept. ACH processing costs a flat fee per transaction, usually less than $.30 (regardless of the donation amount).

Credit card processing fees can vary based on your processor's fee structure.

Some processors simply charge a flat fee. Or, your processor may use an interchange fee structure based on card brand (Visa, Mastercard, etc) as well as type (Gold, Platinum, Air Miles, etc).

There also might be different fees like set-up costs, monthly or yearly fees, or other charges. Make sure that you ask your payment processor what fees they charge before you start using their services.

Other Considerations When Searching for a Payment Processor

Nonprofit Knowledge

Since many payment processors work with both businesses and nonprofits, they aren't familiar with the specific needs and pain points of your customers.

That’s why it’s so important to choose a payment processor that understands fundraising and has insight into your customers' concerns or challenges with raising money online.

Integration Options

Your nonprofit customers are likely using several different types of fundraising software to ask for and receive donations.

When looking at payment processors, you want to make sure that the vendor you choose has integration options that fit in with all of your customers' existing software solutions.

Customer Care

You want your customers to go into the world of online fundraising knowing that their payment processor and fundraising software provider have their back.

Take a look at what their customer service values are and how they treat their partners. Make sure you're confident that your payment processor will value your team and your customers! 

Ready to Start Your Search for the Perfect Payment Processor?

Look no further than iATS Payments, the only payment processor dedicated to serving the nonprofit community.