Non Profit Credit Card Processing

There are a number of options for nonprofits when selecting a credit card processor. Although there is little doubt that a nonprofit, that expects more than just a few donations a year, should give donors the option of using a credit card, how a nonprofit does that is not always an easy question to answer.

Merchant Accounts

The benefit of having your own merchant account is that your nonprofit will be the party named on the donor's credit card statements, and funds will flow directly to your nonprofit's bank account. The disadvantages are that your organization will need to go through the same credit checks and paperwork as any other business, which may take some time and patience.

Advantages:

• Nonprofit's name appears on donor's credit card statements
• Excellent branding opportunities
• Funds flow quickly into nonprofit's account

Disadvantages:

• Complicated fee structures
• Wide variance of cost across processors
• Longer time to set up and more legal hoops to jump through