Payment processors for nonprofits are an important pillar of fundraising online. They play a vital role in the transaction process, which is the realisation of value.
Nonprofits receive payments through memberships, donations and by selling products or event tickets. And they need to make sure the money is deposited quickly into their bank account.
Payment processors for nonprofits help accept payments by transferring key information from their fundraising websites to issuing banks, card associations and online wallet players.
Here are the 4 questions to consider to select one effectively.
- First, what is the average volume of payments I receive?
- Secondly, what is my level of knowledge of payment platforms?
- Third, what will be the impact on my cash flow?
- and finally, what features do I need?
Transaction volume and platform pricing
It is in part the volume of your transactions that will determine the price per transaction for the processor you choose. Indeed, most platforms apply a combination of;
- Percentage to the transaction,
- Fees fixed at the transaction,
- Monthly fee.
Typically, a low volume nonprofit organization will favour higher transaction costs, while in the case of larger volumes, a monthly fee will reduce the percentage per transaction. Reduce all fees in percentage per transaction to compare the cost of different platforms. Make the calculation regularly and change platforms as needed.
Knowledge of technology, configuration and use of the platform
Not all payment platforms have the same ease of configuration and use. Some are more intuitive and easier to set up than others. Request a demonstration of the user interface.
As a general rule, if you are not familiar with the technology or do not have the support of a specialized resource, opt for a platform that gives you access to advisors or customer support. They will guide you through the many options and work with you when setting up or in case of technical problem. Make sure you can speak with an account manager at all times before choosing your payment platform.
The impact on your cash flow
Some platforms deposit money into your account several days after the transaction. For many nonprofits, this constraint can be problematic. Find a platform that deposits your funds on demand, preferably the next day. Make sure you get your money back as soon as possible.
Choosing the right platform is complicated as the many solutions available in the market are varied, each with their specific technological features. So you have to make sure that the selected platform will integrate easily with the software you use.