3 Myths About Nonprofit Credit Card Processing

Nearly 90 percent of American families give to charity, according to findings by the National Philanthropic Trust, and the average annual household contribution is $2,213. Some of this giving is to local charities. Some is to churches and some is to the arts, disaster relief and health-related charities. Clearly, America is a generous society.

The advent of nonprofit credit card processing via the Internet and mobile devices has made giving even easier. Supporters can click on a website button or give at a booth at the county fair while being assured that their card and other personal information is being handled safely and securely.

Myths about nonprofit credit card processing

There's a lot of misinformation out there regarding charities and credit card processing. Below are three of these myths:

1. Credit card payments cost the nonprofit more to process. If you're thinking that sending a check to a nonprofit or charity costs less to process and leaves more money to do good works, think again. Handling a check payment costs up to twice as much as direct credit or debit card processing. That's because a check payment has to be handled several times — when it arrives in the office, to deposit it in a bank and to reconcile the bank statement when the money is deposited. Plus, bounced checks cost non-profits time and money. Conversely, credit card payments are handled just once: when the payment is received from the nonprofit credit card processing vendor.

2. Credit card payments to charities aren't safe. Internet security associated with nonprofit credit card processing is a high priority both for the charity and the credit card processing company. Processing companies like BluePay use state-of-the-art encryption so that the information you enter in the computer for your charitable donation can't be hijacked on its way to the charity.

3. Only charities with high overhead are able to accept credit card payments. Don't think that just because a nonprofit accepts credit cards for donations that the organization isn't using your funds wisely. New technology in credit card processing has made accepting credit and debit cards much more affordable that it has been in the past. Plus, the charity usually has access to your money more quickly if you pay by credit card than if you pay by check.

BluePay Processing, LLC is a registered ISO of Wells Fargo Bank, N.A., Walnut Creek, CA, U.S.A.
BluePay Canada ULC, is a Registered ISO/MSP of Peoples Trust Company, Vancouver, Canada.