Payment processing is the most critical function in any organization, including accepting donations. Payments are the heart of the business or nonprofit because everything else can flow from that—your community, outreach, and mission. A payment processor allows you to accept payments, donations, membership fees, fundraising, camps, and programs for your organization. As a nonprofit, you want to be able to accept donations in all ways from your donors, and selecting a payment processor that enables you to do this securely and efficiently is key. 

While many payment processors accept payments, some businesses have done this exclusively for nonprofits and know the ins and outs better. When selecting a payment processor, looking at cost and affordability is also important. That is why a processor working with nonprofit organizations will most likely be your best option. The last thing you want to do is have overcharged fees for processing your donation with a credit card, because studies show over 63% of donations are done online, and over 57% are enrolled in a recurring donation.  

The Benefits of Payment Processors Who Works With Nonprofits 

1. Safe Payment Processing

Processing donation payments should be done securely. Your payment processor should be PCI-compliant. You want to choose a processor that accepts all types of payments. Payment processors can sometimes have a complex process for onboarding nonprofits, but choosing a processor with experience with nonprofits will know all the backend processes. 

2. Fees

Anyone can process a payment, but are you being overcharged for your payment processing? How are your credit card transaction fees? When was the last time you evaluated your rates? These are all good questions to ask yourself when looking at costs. The rate may seem low, but the actual price could cost you a lot in the long run. This includes looking at your contract; you should not be locked into a long contract with outrageous fees to cancel. Using a transparent, trustworthy payment processor will make a substantial financial impact on your organization. As you know, every dollar counts and adds up.

3. Retain Donors

First, you will have access to your donor’s (or payment provider) information. Payment processors that work with membership organizations specifically have tools integrated for recurring donations. Intelligent payment gateways processors capture data and store it safely while also proactively updating credit card details and numbers with tools like customer and merchant account updater.  

4. Accept Different Forms of Payments With Ease

Your payment processor should accept credit and debit card payments as well as ACH payments. PayPal integration is an excellent option, as around 10% of donations are through PayPal. Digital Wallet will continue to grow in popularity as a convenient and easy way of giving. The last option would be texting or phone call option to give.  

5. MCC Codes

If you are wondering what an MCC code is, it is a merchant category code that determines what type of service you provide for your customers. Knowing your MCC code and lining your business up with the proper code when collecting donations is important. Processing online payments with specific MCC codes can mean lower interchange rates for some businesses or organizations. A MCC code that aligns with the nonprofit can save the merchant over 10% on Interchange fees charged by Visa/MC/DC/Amex. For example, healthcare, education, and nonprofit organizations typically have lower rates. You can contact your merchant processor to learn about your MCC code and how it will affect your rates. 

Pick a payment processor that works with nonprofit organizations and grasps the unique experiences that organizations face with donations. Be sure to do your research with the customer service; when your business relies on donations, you want to make sure the payment processor has a good reputation and understands and partners with you for your mission.  eCard Transactions has been working with nonprofits for over 20 years and has been an industry leader among other payment processing companies. Their unique and intelligent payment gateway tools were developed exclusively for nonprofit organizations. For more information about eCard Payments check out