Aug 11, 2016
Payment processors have different fees for various payment types. From a several percent surcharge to several dollars per purchase, these costs can add up. To mitigate the effects of these charges, some nonprofits choose not to accept credit cards with more expensive fees. This can limit donors and donations, two aspects of nonprofits that should never be affected by payment processing. Read on to learn the importance of accepting all major credit cards:
Anyone can donate
Have you ever been to a store that featured a sign reading, "No (insert credit card type here)"? If you were one of the unlucky customers to have only that card, you likely had to drop your purchases and leave. Not only were you unable to pay for the goods or services you needed, but you also likely felt a negative association with that business, as well as embarrassment or anger. You wouldn't want potential donors to go through this situation, would you? To avoid turning funders away, it's important to work with a payment processor that accepts all major credit cards. Offering automated clearing house and direct transfer services are also key in ensuring anyone can donate onsite or online.
You'll increase donations
When you limit payment methods you're also placing restrictions on donations. People who want to give to your cause may only have one credit card, and if that's the card your nonprofit doesn't accept, they may not be able to donate. By accepting all major cards, like MasterCard, Visa and American Express, you provide opportunities for both people who want to support your cause and your business.
You'll avoid checks
If someone really wants to fund your organization's cause but can't use their credit card, they may reach for a check. While this is a valid form of payment, it can take a lot longer to clear, extending the time it takes for your nonprofit to receive the funds. Checks also require more hands-on processing as you must go to a bank and then wait for the funds to transfer. When you accept all major credit cards, you won't have to deal with this hassle, and neither will the person who wants to help.
Cash is limiting
Many people avoid carrying much cash because they don't want to have it stolen and it's overall inconvenient. People who want to donate to charities typically like having a record of their donation so they can keep track for tax purposes. When they have to pay in cash because your nonprofit doesn't accept their card, they don't have record of the funds in their account. Plus, it's difficult for organizations to manage cash as it can be misplaced, miscounted or stolen.
Trust is a major factor between donors and nonprofits. When a charity uses a respectable payment processor that offers ease of use and efficient transactions, donors will notice. Knowing they can easily provide money to a cause they care about will encourage them to donate, and accepting all major credit cards is a great step toward this important level of trust.