The Importance of Merchant Services for Nonprofits
Most business owners know that credit card processing is essential. Still, they might not realize how critical it is to non-profits as well. Without merchant services, non-profits would have a tough time raising money through accepting donations and selling merchandise online. Merchant credit card processing accounts for non-profits enable these businesses to process donations from supporters efficiently, sell merchandise online, and collect membership fees. This blog post discusses the importance of merchant services for non-profits and what to look for when selecting a non-profit payment processor. Keep reading to learn more!
What are Merchant Accounts?
Merchant accounts are bank accounts that allow businesses to accept payments by credit or debit card. The merchant account is linked to the business’s website where, once the customer has filled in their payment details, the funds are transferred from the customer’s account into the merchant account. This system makes it easier and faster for customers to make payments by eliminating the need to send physical checks. The merchant account enables businesses to process online transactions via an electronic payment gateway. So what about non-profit merchant accounts specifically?
Non-profit merchant services are essential for a few reasons. The first is that donations are vital for most non-profits’ income. This is especially true for charities, which often rely on donations from individuals and businesses to fund their work. By accepting donations online, nonprofits can increase their reach and bring in more money. Selling merchandise is another way that nonprofits can generate funds. Whether selling T-shirts or candles, the services provided by a merchant account enable non-profits to sell their products online and process credit card payments. On top of this, merchant services for non-profit include a better way for participants to pay membership fees online, enabling non-profit organizations to operate more efficiently than in the past.
How Does Merchant Credit Card Processing for Nonprofits Work?
The payment processing for non-profit organizations functions through 5 basic steps:
1) Online Donation or Merchandise Sale is Submitted
The first step of the non-profit funding process begins with an online donation or purchase. Any non-cash donations are verified through a payment processing system before your organization can access them. When donors use different methods for donating, like text messages or mobile apps on their phones, they input CC information which triggers internal processing activities.
2) Information is Transferred through a Gateway
Once a customer makes an online purchase or donation, their credit card is checked for validity by the payment gateway. The verification process includes checking addresses and other personal details before processing. If payment is rejected, the gateway will communicate this problem through your nonprofit’s website or mobile app. Non-profit merchant services will take care of these fraudulent charges, pulling usable funds out of the existing account.
3) Funds Go to the Non-Profit Merchant Account
The nonprofit’s donation moves from the credit company into a non-profit merchant account. This is different from other accounts because it only holds donations made on behalf of nonprofits, done through a specific processing organization.
4) The Contributor’s Information is Collected into a Database
As soon as a donor makes an online contribution, they provide personal information to your non-profit. This information is then transferred into a database, normally including name, amount, address, phone number, email address, and other contact information. Your online donor database is the lifeblood of your organization.
5) The Donation is Distributed into the Non-Profit’s Bank
Now, all you need to do is collect the money! The process can be done in a few days and it will put your non-profit on track for success.
How Does SeamlessChex Provide Non-Profit Merchant Services?
SeamlessChex offers a secure and easy-to-use platform to create a non-profit merchant account. We have a simple online application process and require no credit checks, so businesses can set up their accounts quickly and painlessly. All you need is your primary business information to sign up for our variety of services.
Once you complete our hassle-free signup process, we’ll verify your account. We specialize in working with and understand the unique needs of nonprofits and religious organizations. Our non-profit merchant services cover all donations, fundraising needs, membership fees, online merchandise, and even event tickets.
Sign Up to Make Non-Profit Payment Processing Easy
Merchant credit card processing for nonprofits gives their customers and donors convenience without draining any business resources. With advanced payment security, experts working for you, and tailored account settings, our non-profit merchant services are cost-effective and painless.
If you’re looking for faster and more secure payment processing, SeamlessChex offers just what you need. With our cutting-edge verification and payment security technologies, we offer the best services for your industry. Sign up for a free trial to try our suite of products for yourself. If you have any questions about non-profit merchant accounts, contact us so we can help.