At the NACHA Mega Meeting, September 29-30, we listened to an esteemed trio of panelists, American Red Cross, Faith Direct, and Star of Hope; discuss nonprofit payment processing. During an economic period where overall charitable contributions are down, payment simplification is paramount for non-profits. Americans gave more than $307 billion in charitable donations despite the economic conditions in 2009. However, total giving, when adjusted for inflation, was down 3.6 percent. This was the steepest decline since the Giving USA annual reports began in 1956.
As a payment partner for non-profits, we care about the challenges they face in the payment industry. What matters most to them? Let’s take a look.
• Simplified nonprofit payment processing that doesn’t create a barrier to donation – Although there are several options for online payment processing, some third-party choices require an extra step. Signing up for an account before being allowed to make a payment can turn away e-givers. Another concern is that when a third-party payment vendor’s name appears on the donor’s credit card statement, it causes donor confusion. In many cases, if the non-profit’s name doesn’t appear on the credit card statement, the donor may dispute the charge and request a reversal. Charitable organizations that set up their own merchant account can experience greater payment success through easy identification. It is also imperative that non-profits have the ability to accept all forms of payment—cash, credit cards, debit cards, electronic check and more. Just like any merchant, you don’t want to turn someone away because their payment type wasn’t supported.
• Automated recurring donations – Many e-givers make charitable donations on a regular basis. Automating the process by using a payment solution that offers recurring billing generates predictable cash flow, reduces administration time and cost, and presents a green solution.
• Trust & security – The market for charitable donations is competitive. Building a trusted relationship with donors keeps them coming back. To build that trust, donors must have a smooth transaction process and must feel confident that their account information is secure.
• Customization & easy integration – Charitable organizations don’t always have a technical team on staff. Easy to use solutions that integrate into existing systems are a great cost-savings to non-profits.
TrustCommerce has been meeting the nonprofit payment processing needs of charitable organizations for more than a decade with our secure TC SMART products. These solutions remove, secure, and protect sensitive cardholder data as well as allow for automated recurring payments. 83 percent of all philanthropic dollars are contributed by individuals and bequests. Make it easy for individuals to give by utilizing a comprehensive payment processor.