Many non-profit organizations are still using third-party processing platforms to
accept charitable donations online, but what about donations made in person? Providing donors with multiple payment options at fundraising events is a marketing strategy many non-profits without their own merchant account are losing! Here are the benefits of non-profit organizations having their own merchant account to process credit and debit cards.
Increase Donations
Individuals are the largest source of giving, and once they give, they are more inclined to give again. Harness this knowledge by offering donation opportunities both online, and in person. On-site fundraising events like school programs, silent auctions, church events, and sporting competitions can increase giving through in-person credit and debit card donations. Having an on-site merchant account gives non-profits organizations the ability to raise money anywhere, not just online.
Lower ChargebacksMany chargeback occur when the name on the credit card statement does not match the DBA (Doing Business As) name. Charities utilizing a third party merchant account will not have their business name listed on their donors credit card statements. This can confuse donors and spark a chargeback investigation. Chargeback investigations cost the organization money to investigate and resolve. Lower chargebacks and save money.
Faster Funding
Third party merchant accounts generally take about 1 week to fund credit card donations. Tying up the money that could be earning additional money in interest, or helping others immediately. Funding delays can be avoided by opening an own merchant account. Some specialty merchant account providers, like PaymentMax, can have
credit card funds deposited directly into an organizations bank account in 24 hours.
More Control
Credit and debit card information processed through a third-party processor is not made available to the non-profit organization. This information can become extremely valuable when tracing chargebacks and returns. Non-sensitive information can be used for record keeping, database creation, and tax returns.
Non-profit organizations like churches, synagogues, parent-teacher organizations, local food banks, pre-schools, animal rescue programs, Humane Society, Habitat for Humanity, children’s charities, and cancer fundraisers can all benefit from having their own merchant account. Donors will have the ability to donate online, and in-person at special fundraising events: increasing donations and lowering chargeback rates. Credit card monies will be deposited directly into the organizations bank account much faster, and donors’ information becomes available for tracing any problems that may arise.