Payment processing may be a complicated topic for those who are not involved with a nonprofit organization. However, if you are part of a new one and planning to use payment processing, there might be a couple of things that you want to figure out. One of those things is what types of payments should you accept. Let's get started.
Types of Payment That You Should Accept for Your Nonprofit Organization
Nonprofit payment processing is crucial as they allow online donations to be received by the organization securely. In this digital age, prospective donors are now spending most of their time online through their mobile devices.
Therefore, you have to reach them in the place where you can find them. Interact with them so you can convince them to donate to your organization. Here are some of the different types of nonprofit payment processing methods that they accept.
Payments Made in their Credit Cards
Credit card payments are the first thing that pops into a donor's mind when donating online. Donors want the process of donation to be seamless. They want to type their credit card info on the online donation form, and personal data, and get done with it. After that, the processing of the payment should be as quick and easy as paying a grocery store by swiping the card.
Usually, payment processors accept some of the most common credit card providers like Mastercard, Visa, American Express, and the likes. Your payment processor should take them too since credit cardholders spend more than twice in impulse donations than other donors that use a different donating method.
Payments Made in ACH Debit
Automated clearing house or ACH payments are like e-checks. They allow the organization to deduct the amount from their bank accounts.
ACH payments work by letting the donors key in their bank details (bank account number and routing numbers) in the online donation form. The donations you gather here won't have to be deposited to a merchant's account. Your organization gets a direct deposit.
Since this type of payment is pretty easy, most donors use this to set up auto-debit donations. Apart from that, it helps nonprofit organizations to get rid of fees associated with using credit cards.
Your organization must choose the best payment processor. It should allow your organization to accept these types of donation payments. After all, declining a donor's credit card can result in canceled donations.
Providing several options make donations more accessible. It enables more funds to flood in because it encourages your donors to give more to your organization.
Besides, allowing your donors to choose their preferred payment option will help them stick through the process and make a recurring donation.
To top it all off, providing a secure payment processor increases the chances of your donors to contribute more. Donors are more confident to provide their bank details and personal data if you can provide a safe platform for them to use.