Credit Card Processing for Nonprofits
Non-profit organizations are a special category of companies that exist only thanks to donations from individuals or legal entities. Such organizations often have problems with opening merchant accounts that are crucial for receiving payments from debit and credit cards. Financial institutions are reluctant to process credit cards for non-profit organizations. Such businesses have irregular income, which puts them in the high-risk category. A solution for such organizations can be a special non-profit 501c3 account, which will allow them to accept payments from donors without any problems.
Why do non-profit companies
need a merchant account?
Merchant account for a non-profit organization is a crucial solution for accepting payments from credit and debit cards and other sources. An important advantage of a merchant account is that it allows you to receive payments around the clock. The company’s business activity does not depend on the day or time of day; payments can be made on weekends, holidays, and at night. A merchant account for businesses and non-profit organizations allows you to accept payments from various sources – bank cards, electronic wallets, and so on.
Features of non-profit organizations
The main characteristic of a non-profit organization is that it does not conduct any business activities. It earns income through donations. Non-profit organizations include charitable organizations working in the following areas:
- Protection of climate and ecology.
- Education.
- Care for the elderly.
- Care for children.
- Fight against poverty, etc.
Despite their public benefit, non-profit organizations are considered by most traditional payment processors to be risky to collaborate with. Because of this, they face refusals to open accounts, increased registration requirements, and problems with non-profit payment processing.
Risk factors for credit card processing for non-profit organizations
Companies that work in the field of charity or conduct other non-profit activities may encounter problems when opening a merchant account. For example, the following difficulties may arise:
- Refusal of banks for new organizations.
- Increased risk of chargebacks.
- “Card-not-present” transactions.
Thus, a non-profit company faces serious risks both when interacting with banks and when conducting business. A special merchant account will help to reduce them significantly.
Payment gateway for non-profit companies
For non-profit companies, it is especially important to ensure comfort for users when making payments (donations in this case). A payment gateway will help with this. The payment gateway serves as an intermediary between the merchant, the card network, and issuing and acquiring banks. After a donor fills out an easy payment form, the payment gateway securely encrypts user data and transmits it through the card network to the issuing bank. The response also goes through the payment gateway to the acquiring bank. Thus, the payment gateway plays an important role for any company that accepts payments.
SegoPAY offers profitable non-profit merchant services
SegoPAY offers the best non-profit merchant account. Using our services, you will get a wide range of opportunities. Our non-profit credit card processor offers low monthly minimums and low maintenance fees. You can accept payments from bank cards, electronic wallets, POS terminals, etc. SegoPAY also offers a convenient payment gateway for customers.