With the right nonprofit credit card processor, organizations can increase donations and reduce costs. The top vendors offer discounted rates for registered 501(c)(3) charities and support multiple donation methods. But, donation processing features and fees vary between merchant services for charities and fundraising platforms with built-in payment processors.
To find the best solution, look for services that fit your donor base and let your charity collect data, reach more supporters, and serve your purpose. Learn how costs differ between nonprofit payment processing companies and what features and tools to consider.
What to look for in a nonprofit credit card processor
The top nonprofit credit card processors offer discounted rates and strong fraud prevention features. Some also offer donor outreach and retention tools. But differences in fee structures and platform capabilities affect how much of your supporters’ donations you receive and where you can accept funds. Let’s go through what to look for in a nonprofit merchant account, including what features to evaluate, typical costs, and popular payment methods.
Discounted nonprofit rates
Many merchant account providers offer lower rates for registered 501(c)(3) organizations. However, some require monthly minimums. Depending on the vendor, you may pay more than a payment processing fee. All-in-one donation platforms typically charge monthly or annual fees plus per-transaction fees. When comparing your options, calculate the effective rate: total fees divided by expected donation volume.
Consider the following when comparing nonprofit credit card processing fees:
- Interchange‑plus pricing for nonprofits: Credit card networks, like Visa and Mastercard, offer lower rates for registered nonprofits. But it’s up to the payment processor to pass this discount to you. This cost structure is variable, based on the card type and other factors. It’s a better value for higher-volume nonprofits.
- Flat-rate pricing for nonprofits: Many platforms charge flat rates, so transaction fees are the same across different card types, like rewards or travel cards. Square, Stripe, and others also use the flat rate model. Generally, you pay higher fees for online or keyed-in payments.
- Platform costs: In addition to the monthly or annual subscription fees, all-in-one donation platforms may charge transaction fees on top of the credit card processing fees. You can expect to pay around 1% more per transaction.
- Donor-covered fees: Some platforms offer options for donors to cover fees. To ensure this feature earns supporters' trust, verify that the opt-in box is not prechecked and that it displays the real-time total cost before checkout.
- Typical nonprofit rates: Credit card processing fees for nonprofits range from 2.2% plus 30 cents to 3.5% plus 30 cents. To qualify for the lowest rates, nonprofits may need to pay platform fees or process a higher volume of payments.
- Fees to watch out for: Some nonprofit platforms and merchant account providers charge extra for PCI compliance (Payment Card Industry Data Security Standard), payment gateways, or setup.
Flexible payment options
Today, accepting all major credit cards is a given, and many platforms and processors allow nonprofits to accept Apple Pay and Google Pay donations. Not all vendors support tap to pay or provide mobile card readers for fundraising events. These may be add-ons.
Automated Clearing House (ACH) payments and e-check donations for nonprofits are a great way to save on processing fees, especially for recurring payments. But these options aren’t always supported. Another consideration is accepting cryptocurrency as payment. This is an interesting way to attract new supporters to your cause.
PCI‑compliant donation processing
Check with the vendor to see what type of PCI-compliant security and fraud protection they offer. Nonprofits must maintain PCI compliance when accepting payments. Many credit card processors will manage the compliance portion on your behalf, but not all of them. While encryption and tokenization are the main security measures that keep payment information safe, fraud detection options vary.
Other options include:
- Address verification system (AVS): Checks the billing address the donor provided during payment against the one the credit card company has on file.
- Card verification code requirement capability (CVV2): Confirms the three or four-digit number on the back or front of the credit card is correct.
- Bank identification number (BIN) checking: Verifies that the bank account used for an ACH or debit donation is valid.
- IP (Internet Protocol) blocking: Prevents specific IP addresses from accessing your donation site if they are suspicious or otherwise unwelcome.
Accounting and CRM integrations
Accounting and customer relationship management (CRM) integrations can save time and improve accuracy. When these tools connect to your payment processor, each transaction automatically records the information in the databases. Depending on the integration, it can help you capture address, email, and phone number changes. By setting up automations in your CRM, you can trigger a thank-you message each time someone donates.
Donation and donor retention tools
See if the processor offers payment features that enhance the donation experience or improve retention. Some merchant services offer tools even if they don’t provide a donation management platform.
Look for the following features:
- Integrated donation forms for your website.
- A checkbox to set up recurring giving.
- Automatic updates of expired credit card information.
- Instant receipts via email when using mobile apps.
- A Facebook donation page.
- Membership and ticketing forms.
- Built-in donor database (a customer relationship management (CRM) platform).
How payment processing impacts donor retention
When a person gives to your organization for the first time, their payment processing experience impacts future donations. If everything goes smoothly and feels trustworthy, that’s a great sign. But if they don’t receive a payment confirmation or the process is confusing, your organization missed a chance to make a great first impression.
So, what payment processing features convert one-time donors into loyal supporters? Consider the following:
- Easy-to-use in-person and mobile payment apps.
- Speedy payment pages with guest (no forced account creation) options.
- Modern payment options signal to donors that your organization is relevant.
- Every channel must be optimized for mobile.
When a person gives to your organization for the first time, their payment processing experience impacts future donations.
Top vendors for nonprofit payment tools
The top vendors for nonprofit payment tools include donor management and fundraising platforms with built-in donation processing features, merchant account providers, and payment processors. Most offer discounted nonprofit rates and recurring giving options. Explore the following solutions to find the right nonprofit payment processor for your organization.
Deluxe Merchant Services: A donation platform with dedicated customer support
Deluxe Merchant Services for nonprofits (formerly iATS by Deluxe) provides a single phone number for customer support and an all-in-one technology platform to accept donations anywhere. The vendor has over 20 years of experience, is trusted by more than 16,000 nonprofit clients, and works with nonprofit organizations of all sizes.
Key features include:
- In-house credit card processing.
- No processing minimum.
- Online forms for recurring and one-time donations.
- Donor-covered fees options.
- Built-in fraud protection.
- A fully integrated Salesforce payment processor app.
Bloomerang: Donor retention and engagement for small to midsize nonprofits
Bloomerang’s donor management platform helps nonprofits engage and retain supporters with its fundraising suite and mobile app. It offers several subscriptions with features for volunteers, campaign analytics, and auctions. Bloomerang Payments (built on Stripe) offers flat transaction fees with no monthly minimums.
Key features include:
- PayPal, Venmo, ACH, Apple Pay, tap to pay, and more.
- Automatically updates expired credit credits.
- Donor-covered fees options.
- Built-in CRM.
- Fraud monitoring.
PayPal: Best credit card processor for new, local nonprofits
PayPal is a well-recognized credit card processor that helps more than 1 million crowdfunders, nonprofits, campaigns, and schools fundraise yearly. It offers discounted transaction rates for verified 501(c)(3) charities and reduced rates for all other nonprofits. PayPal doesn’t charge platform fees. Indeed, you only pay transaction fees when receiving donations.
Key features include:
- Fraud screening.
- Downloadable donation logs.
- Online fundraising tools, including a PayPal Donate button.
- Venmo, Apple Pay, Google Pay, and tap to pay.
- Recurring payments.
- Add PayPal Zettle for in-person contributions.
Stripe: An integrated online solution for international nonprofits
If your nonprofit accepts donations worldwide, Stripe is one of the few merchant account providers offering local payment methods in every market. It automates sales and value-added tax collection while protecting you against fraud. Confirmed 501(c)(3) organizations receive lower rates.
Key features include:
- Email receipts.
- Recurring donations for daily, weekly, monthly, or yearly pledges.
- Software and APIs.
- Tap to pay.
Charity Engine: Growing nonprofits seeking fundraising automation
Charity Engine is an all-in-one nonprofit CRM with in-house nonprofit payment processing. It stands out for its automated workflows, which save organizations time with billing and fundraising tasks. Donors can give through Charity Engine’s online app or donate in person. The platform features peer-to-peer fundraising pages, event ticketing, and integrated email campaigns.
Key features include:
- CRM with pledge tracking, task management, and predictive gift probability.
- PayPal, Apple Pay, ACH, checks, and Google Pay.
- Event management.
- Direct mail.
- Automated multichannel campaigns.
- Custom donation forms and templates (and giving pages)
- Over 200 prebuilt reports and dashboards.
Square: Free POS for in-person and online donations
If your nonprofit sells T-shirts and other items, Square’s free point-of-sale (POS) software, e-commerce tools, and mobile card readers can boost donations. It integrates with Meta for Business, so you can accept donations or sell goods on Instagram and Facebook. Your team can collect donor funds in person by logging in to the Square POS app on their mobile phone or tablet.
Key features include:
- Active fraud prevention.
- Quick response (QR) code CashApp Pay.
- Donate buttons.
- Cash, checks, ACH, Apple Pay, and Google Pay.
- Donation payment links.
GoFundMe Charity: A peer-to-peer fundraising payment processing option
With GoFundMe Charity, your nonprofit doesn’t have to sign up with a separate payment processing provider. It’s connected to the PayPal Giving Fund, which handles charity fundraising debit and credit card processing. By going this route, your nonprofit can fundraise online using donation pages, and individuals can create campaigns on your behalf, with all funds going to your charity. It offers free and paid options.
Key features include:
- Prebuilt templates.
- ACH, debit, PayPal, Apple Pay, or Google Pay.
- Recurring donations.
- Email invitations.
- Donor-covered fees options.
- Built-in CRM program.
Dharma Merchant Services: Integrates with 4aGoodCause
Nonprofit organizations can benefit from Dharma Merchant Services’ low interchange rates. It offers discounted rates for registered 501(c)(3) organizations without any processing minimums. You can integrate Dharma with 4aGoodCause, an online fundraising platform offering donation pages.
Key features include:
- Donate button for websites.
- No setup costs.
- Virtual terminal.
- Online reporting.
- Payment links.
- A customer database with credit card storage.
Helcim: Low credit card processing rates for registered charities
Helcim’s interchange plus rate passes discounts from Visa and Mastercard (for verified charities) to your nonprofit. It doesn't charge monthly fees, and it offers in-person, online, and recurring donation solutions. Helcim provides a customer portal for donors to manage their payment information and subscriptions. The CRM features let you collect and store donor details to improve your outreach efforts.
Key features include:
- Recurring payment manager for ACH and credit cards.
- Donate button for websites.
- Free POS software for phones, tablets, and computers.
- Online checkout pages and payment links.
- Free, fully hosted online store option.
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