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Credit Card Processing for Nonprofits

With technology advancing, the world is changing fast. Businesses and nonprofits expect efficient credit card processing. They need to keep the pace with modern expectations and transforming payment options. Just as online shoppers rely on fast and secure digital checkout processes, donors expect speed and efficiency when giving to their favorite causes. Nonprofit leaders need to monitor the effectiveness of their payment system for one simple reason: It determines the longevity of their organization.

Process Every Payment Through the Same System

Imagine donors raving about being a part of your organization. Word of mouth is one of the most powerful forces that drive growth for nonprofits – especially smaller ones. Without a smooth and intuitive payment experience, donors are likely to become frustrated or confused. Worse, it can lead them to abandon the checkout process altogether.

One study found that people are likely to spend 12-18% more when using a credit card instead of cash. Another assessment was even more surprising, showing the average cash transaction valuing at $22 while the average card transaction was $112 – 409% higher.

For this reason, a quick and easy branded payment portal is a no-brainer for organizations that want a digital presence and steady revenue. Whether you’re collecting donations, selling event tickets or merchandise, or receiving monthly or yearly membership fees, credit card processing is vital for sustainable revenue. With one unified payment portal, your donor data is safe from cybercriminals and consolidated in one easily-accessible vault. Credit card processors use sophisticated encryption making it harder for criminals to hack into private information.

Avoid Excessive Fees

Credit card processing fees have been climbing steadily over the past decade, with companies like Visa and Mastercard inching their rates upward. From 2009 to 2019, these two companies alone more than doubled processing fees from $25.6 billion per year to $67.6 billion per 2019.

One way around this is partnering with a credit card processor that facilitates ACH debit payments. When donors give straight from their bank account, it’s akin to an electronic check. While there will still be a small fee associated with ACH debit payments, you’ll still be saving money compared to a credit card transaction.

For nonprofits, every dollar counts. Partnering with a credit card processing company that understands the unique challenges you face can provide a much-needed leg up in a world of increasing fees. A reliable credit card processor will ensure most transactions are deposited into your organization’s bank account within a few days.

Integrate with Online Giving Tools

Nonprofit leaders are sometimes hesitant to make big changes to how they operate. If you’re smart and risk-averse, these traits probably got your organization to where it is today. However, there is danger in being too unwilling to upgrade and modernize the way you collect donations and interact with your community.

Credit card processing companies are well aware that nonprofits rely on specific tools to survive. Things like text-to-give, mobile applications, donor kiosks, and website donation buttons are some of the most common avenues today’s donors use to give. For this reason, integrations with various popular tools are becoming more common.

Build a Brand Donors Can Trust

While it may be unfair, nonprofits are scrutinized much more closely than businesses. People are more concerned about where their dollar is going, how effective the organization is, and how much is spent on overhead. For this reason, the more transparent and trustworthy your nonprofit brand is, the more donors will happily fund your mission. Payments are a profound way nonprofits secure trust, and ease throughout the giving process may even inspire donors to give more.

Reputable credit card processing companies also provide PCI Compliance Benefits. PCI DSS (Payment Card Industry Data Security Standards) Compliance is required for all organizations accepting card payments.

LOLA POS handles this by walking members through the simple two-step process of becoming PCI Certified. From there, an annual self-assessment is provided to help you stay compliant.

Choosing What’s Right for You

Depending on how your organization is run, you may opt for a fully customizable POS system, a digital payment portal, or both. The most important step in getting started is to identify what your organization needs to sustain itself – plus, what it needs to grow. Don’t be afraid to think ahead to where you might be in 1-5 years.

While accepting cash or payments through platforms like Paypal may work for a while, you will lose donors in the long run. Those who don’t carry cash or don’t wish to log into specific platforms will likely skip the inconvenience and decide not to donate. Over time, these little losses can add up to major setbacks and prevent your organization from reaching its highest potential.

With online payment options multiplying and transactional fees soaring, giving your nonprofit the best shot at success means getting support. An experienced merchant services provider can equip you with cutting-edge fraud protection and advice from payments experts. As you grow your organization, having experts on your side can be reassuring, especially in challenging times.

How It Works

Your payment processor is put to work when a donor gives or makes a purchase from your organization. They are led through a simple step-by-step process, inputting their information and selecting either debit or credit for the transaction. This can be done on a smartphone, computer, or tablet.

Once their information is submitted, the donor is automatically taken to a payment gateway. Payment gateways are designed to scan payment details to detect problems, such as suspected fraud or insufficient funds on a card. Payment gateways are your first and most powerful line of defense in making sure money is received safely.

Once the payment is complete, donors can automatically be added to a database with the help of your merchant services provider. Databases store critical information about your donors, like names, phone numbers, and addresses. This data, when organized in one place, can be used for any number of projects & promotions throughout the year. Keeping tabs on who donates and how often can give you critical insight into your donor base that can’t be found elsewhere.

Partner with a Merchant Account That Works for You

LOLA POS offers special perks to nonprofits that are motivated to help their communities. As high-risk payments experts, LOLA POS has advocated for small businesses and nonprofits for more than 15 years. Our Give It Back program has given businesses and nonprofits a simple way to support themselves and bolster their communities since 2004.LOLA POS provides credit card processing for nonprofits and one-on-one support from payments experts. to make all transactions simple and secure. With additional benefits like pre-chargeback mitigation, equipment coverage, and tech support, LOLA POS membership is the easiest way to nurture your organization & ensure a loyal donor base year-round. Learn more about how what we offer.

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