No matter the size of your nonprofit organization, being able to take credit card donations can radically increase the amount of money you can raise. It also allows you to easily set up recurring donations or online giving. You can get a merchant account with a credit card processor, but some offer special deals for nonprofits. Further, third-party card processors can alleviate some of the approval paperwork required of merchants while also providing special tools to make fundraising easier.
The best nonprofit credit card processing providers are:
- PayPal: Best overall for receiving on-site and online donations. Upgrade to PayPal’s Braintree platform for more customization options
- Stripe: Best for nonprofits that get over 80% of their income through straight donations rather than sales
- iATS: Best for charities that use Salesforce for a CRM
- Dharma Merchant Services: Best for nonprofits generating over $10,000 per month in donations
- Square: Best for small nonprofits that need a POS system for selling items as well as accepting donations
- Charity Engine: Best for nonprofits looking for a complete solution to handle all their fundraising activities, including events
- GoFundMe: Best for charities wanting to harness the power of crowdfunding
How We Evaluated Credit Card Processors for Nonprofits
For charities and nonprofits, credit card processors should do more than handle your payments. They should also provide discounted rates, simple tools for fundraising, and the ability to reach out to donors. We examined over a dozen credit card processing services for nonprofits to determine the seven best for 2021.
With a score of 4.44 out of 5 stars for PayPal and 4.46 out of 5 stars for PayPal’s BrainTree platform, PayPal ranked as the best credit card processor for nonprofits. It offers good rates with no contracts or monthly fees and useful tools for online and in-person fundraising.
Click through the tabs below for a full list of our scoring criteria.
Scorecard breakdown:
35% of Overall Score
You may not have full-time fundraising needs, so we favored processors that did not have contracts or charge monthly fees. We also looked for discounted rates, low chargeback fees, and no cancellation penalties.
25% of Overall Score
You need to be able to accept multiple payment types and from many places. Thus, we gave points for in-person payments (including tap payments like ApplePay), ecommerce transactions, ACH and eChecks, and stored payment information for recurring donations.
20% of Overall Score
The best credit card processors for nonprofits don’t stop at managing payments. They also offer fundraising tools, PCI compliance, a customer database, and CRM functions. We favored those that offered quick disbursements and had 24/7 live customer service.
20% of Overall Score
In addition to our own evaluation of the features and platform, we considered the opinions of the real-world experts: nonprofits that use these platforms. We examined ratings and comments on independent user review sites.
PayPal
PROS
- Discounted rates for nonprofits
- In-person and online payment processing
- Stored payment information for recurring, repeat donations
CONS
- Chargeback fees
- PayPal does not process digital checks, ACH
- Discounts for 501(c)(3) nonprofits only
RATING CRITERIA | Pricing & Contract | 4.75 | OUT OF | 5 |
Payment Types | 3.75 | OUT OF | 5 | |
Account Features | 4.75 | OUT OF | 5 | |
Expert Score | 4.44 | OUT OF | 5 |
PayPal is a recognized leader in accepting payments online and in-person, able to accept international currencies as well as payments of any size. It charges by transaction, and has no limits on how small or infrequent they are, but can also handle large volumes and amounts. PayPal purchased BrainTree to increase its functionality for marketplaces as well as to provide other payment processing capabilities like ACH and digital checks.
The two rank highly for features and customer satisfaction, earning 4.44 out of 5 stars for PayPal and 4.46 out of 5 stars for BrainTree. Users give PayPal a much higher ease-of-use score, while BrainTree fared better for features and customizations. Either is an excellent choice for a nonprofit, and both are popular with 501(c)(3)s of all sizes.
PayPal Pricing (Applies to 501(c)(3) nonprofits only)
- Per Transaction: 2.2% + 30¢
- Chargeback: $20 (PayPal), $15 (BrainTree)
- Monthly Fee: $0
- Hardware: First three card readers are free; additional start at $79.99
PayPal Features
- Donate buttons, recurring payments, invoiced donations
- Virtual terminals, or integration with POS and ecommerce systems
- Transaction reports (BrainTree offers custom reports)
- Immediate funds in your PayPal account; 2-day transfer to your bank upon request or on a schedule you set
- PayPalMe: Set up a donation link for social channels (higher transaction fees apply)
- PayPal Giving Fund: Register to receive donations through PayPal, eBay, and other partner platforms
- Global payments: 26 currencies
When to Choose BrainTree
BrainTree is run by PayPal but offers more customizability for its online tools. However, it’s also more complex, and users say you need someone technically minded to get the most from it. BrainTree can accept ACH and digital checks (PayPal cannot), is better for handling bitcoin payments, and has cheaper international payment processing. BrainTree is also the processor to choose from if you are developing a marketplace.
Stripe
PROS
- Versatile: 450+ integrations, 135+ currencies
- Handles recurring donations, invoicing
- 24/7 support
CONS
- Discount only for 501(c)(3) and donations only
- Pricing complex; need to call for the nonprofit discount
RATING CRITERIA | Pricing & Contract | 4.75 | OUT OF | 5 |
Payment Types | 4.5 | OUT OF | 5 | |
Account Features | 3.5 | OUT OF | 5 | |
Expert Score | 4.63 | OUT OF | 5 |
Stripe is a popular competitor to PayPal for payment processing because it, too, offers good rates and works on a per-transaction schedule rather than requiring a lengthy contract. It gives 501(c)(3) nonprofits a discount on processing fees. It does not have special tools for nonprofits, but its feature set is comprehensive. Some crowdfunding platforms that offer nonprofit fundraising also work with Stripe.
It scored 4.41 out of 5 stars. Users rated it as highly as PayPal for ease of use. Its pricing is complex, and it does not have specific functions for nonprofits. However, it does offer a build-your-own POS system, a user interface (UI) for creating buttons, and integrations with over 450 programs, making it a highly versatile payment processing system.
Stripe Pricing
Stripe, like many credit card companies, prices differently for different types of transactions. It offers discounts only for 501(c)(3) organizations, and only when 80% or more of their transactions are donations as opposed to tickets or product sales. The prices listed are for merchants to give you a basis for comparison. Nonprofits will be charged less. Call for a specific quote for your nonprofit.
- Per Transaction: <2.9% + 30¢
- ACH Transfers: 0.8%, $5 cap
- Chargeback: $15
- Monthly Fee: $0
- Hardware: Start at $59
Stripe Features
- Hosted payment pages or embeddable UI components, recurring payments, invoiced donations
- Integrate with POS and ecommerce systems or build your own (higher transaction fees may apply)
- Financial reports, programmatic dispute handling
- 2-day transfer to your bank or on a schedule you set
- 450+ integrations available
- Global Payments: 135+ currencies
- 24/7 support
iATS
PROS
- Integrates with charity/donation-specific software and organizations
- No chargeback fees
- ACH payments
CONS
- May have a 1-year contract
- 2+-day disbursement
RATING CRITERIA | Pricing & Contract | 3.25 | OUT OF | 5 |
Payment Types | 5 | OUT OF | 5 | |
Account Features | 3.75 | OUT OF | 5 | |
Expert Score | 4.78 | OUT OF | 5 |
Built for nonprofits, iATS is an all-in-one payment solution for international credit card and ACH payment processing. It works with charities of all sizes and offers PCI certification and advanced fraud tools. It integrates with CRM and donation-oriented software and companies.
Over 14,000 nonprofits work with iATS, and it partners with 55 different CRMs, event management, and charitable services. Of note is its mobile app for accepting donations and payments anywhere, such as at a local craft show or civic event, and its Salesforce payment processing app, Brickwork. If you use Salesforce for CRM, Brickwork makes it easy to take donations, simplify donor updates, and keep donor information and transactions on the same platform. This credit card payment processor depends heavily on integrations for the functions others on the list handle natively.
iATS Pricing
- Per Transaction: 2.49% + 26¢
- Chargeback: $0
- Monthly Fee: $0
- Hardware: Purchase separately
iATS Features
- Online forms, mobile app, recurring payments
- Integrate with auctions, CRM, event management software, text2give platforms
- Accept ACH payments
Dharma Merchant Services
PROS
- No long-term contracts
- Virtual terminal
- Works with credit cards to get low interchange fees
CONS
- Not good for small charities
- $20/month monthly fee
RATING CRITERIA | Pricing & Contract | 4.25 | OUT OF | 5 |
Payment Types | 4.25 | OUT OF | 5 | |
Account Features | 3.25 | OUT OF | 5 | |
Expert Score | 4.06 | OUT OF | 5 |
Dharma Merchant Services is a direct credit card processor that works with nonprofits as well as regular businesses. It not only offers discounted processing fees but also ensures you are registered with credit card companies to receive the lowest interchange rates. If you handle more than $10,000 in transactions per month, it’s a good service to have.
Dharma loses some points in our scale because it does require a monthly fee in addition to transaction fees, and it does not offer extra fundraising tools like many of the services on our list. However, it does provide a virtual terminal for offline donation processing, and it integrates with 4aGoodCause, which manages donation pages for a monthly fee. Users that reviewed Dharma liked the service. We give it 4.01 out of 5 stars.
Dharma Merchant Services Pricing
- Per Transaction: 0.15% + $0.07 (Storefront) or 0.20% + $0.10 (Virtual) above interchange
- Chargeback: $25
- Monthly Fee: $20
- Hardware: Purchase separately
Dharma Merchant Services Features
- Virtual terminals or integrate with POS and ecommerce systems
- Reduced transaction fees with credit cards as well as with Dharma
- Integration with 4aGoodCause to get donation buttons, pages, and reports
- 2-day transfer to your bank
Square
PROS
- No chargeback fee
- Free POS software
- Easy-to-use, versatile
CONS
- No discounts for nonprofits
- Live support during business hours only
RATING CRITERIA | Pricing & Contract | 2.5 | OUT OF | 5 |
Payment Types | 5 | OUT OF | 5 | |
Account Features | 4.38 | OUT OF | 5 | |
Expert Score | 5 | OUT OF | 5 |
Square is a highly popular POS system and credit card processor for small businesses. Its tools are extremely flexible, making it a good service for nonprofits as well, especially those that sell items or events. It offers CRM functions for communicating with your donors and tools for monitoring campaigns and setting up recurring donations.
Square takes a small hit for not having reduced pricing, which all the other processors on our list offer. However, it’s still competitive, and the lower base rate (10 cents vs 30 cents) makes it a better option if you take many small payments rather than fewer larger ones. The POS system is a plus, but otherwise, it offers few fundraising-specific tools. Users give it high marks for ease-of-use. Overall, a solid 4.0 out of 5 stars.
Square Pricing
- Per Transaction: 2.6% + 10 cents; invoices and online payments 2.9% + 30 cents each
- Chargeback: $0
- Monthly Fee: $0
- Hardware: The first reader is free; additional start at $49; terminals start at $299
Square Features
- Donate buttons, recurring payments, invoiced donations
- Free virtual terminal, native POS, and ecommerce systems
- Analytics and real-time reports
- Customer engagement software to maintain a customer database, send emails, and monitor campaigns
- 1-2-day transfer to your bank
Charity Engine
PROS
- All-in-one fundraising solution
- Processes ACH as well as credit cards
- Customer database and CRM
CONS
- Need to call for a quote
- No in-person swipe or chip transactions
RATING CRITERIA | Pricing & Contract | 2.5 | OUT OF | 5 |
Payment Types | 4 | OUT OF | 5 | |
Account Features | 4 | OUT OF | 5 | |
Expert Score | 3.13 | OUT OF | 5 |
If your nonprofit runs multiple different campaigns, maybe even simultaneously, then having a solution that can handle everything from events to regular donations could save you hours of time, not to mention headaches. Charity Engine is a fully-featured fundraising solution that includes payment processing.
Charity Engine earns 3.3 out of 5 stars mainly because there is nothing about pricing online. You’ll need to call to get a personalized quote. Also, users did not rate its interface as well as others on our list. Nonetheless, they do praise the features, and there are a lot! You can run events, set up regular donations, have a website, manage direct mail campaigns, run peer-to-peer fundraisers, and more. It can process funds from credit cards, digital checks, and direct transfers/ACH. It’s an excellent system and worth calling to inquire about pricing for your organization.
Charity Engine Pricing
Because Charity Engine is a complete software solution in addition to payment processing, prices vary by the tools you get. You’ll need to call for a quote.
Charity Engine Features
- Donate buttons, recurring payments, invoiced donations
- Website pages, API for integrating with POS
- Email or direct mail campaign management
- Automated workflows to handle billing as well as fundraising, transfer of data between finances teams, reconciliation between departments
GoFundMe Charities
PROS
- No subscription fees
- Top social fundraising platform - $5 billion raised
- CRM, registration, ticketing, email
CONS
- No card reader capability
- No ACH, digital check processing
RATING CRITERIA | Pricing & Contract | 2 | OUT OF | 5 |
Payment Types | 3 | OUT OF | 5 | |
Account Features | 4 | OUT OF | 5 | |
Expert Score | 4.5 | OUT OF | 5 |
Most people know GoFundMe as the crowdfunding tool individuals go to when they have immediate financial needs. However, it has services specifically for charities. The Free plan has a flat transaction fee with a guaranteed donation net amount of 97.5%, and the Flex plan, which has a higher processing fee and a platform fee but gives donors the option to cover the charges. In this way, you could get 100% of the donation.
This service earned a 3.15 out of 5 stars on our scale because of its specific crowdfunding purpose. It does not process in-person chip/swipe/tap payments, for example. It also does not process digital checks or ACH payments. Finally, its integrations are few and mostly CRM or charity fundraising-related. Nonetheless, the rates are competitive, and in addition to the GoFundMe website, which increases your visibility, you can accept donations via your own website.
GoFundMe Charity Pricing
- Per Transaction: 2.2% + 30¢ for the Free Plan or 2.2% + 30¢ plus a 3% platform fee
- Chargeback: $0
- Monthly Fee: $0
GoFundMe Charity Features
- Potential to have donors cover your processing fees so you get 100% of the donation
- Donate buttons, recurring payments
- GoFundMe crowdfunding platform – increased visibility
- Social crowdfunding site easy to use and offers text, photo, and video storytelling capabilities
- Event registration and ticketing
- Email campaigns
- Custom reports
Bottom Line
If you are a nonprofit, you should be getting a discount on your payment processing. There are many wonderful merchant services and credit card processors, both direct and third-party, that work with nonprofits. Third-party processors not only offer reduced rates, but also additional tools to make fundraising easier.
We chose PayPal and its offshoot, BrainTree, as the best credit card payment processor for nonprofits because they offer good fundraising tools along with excellent processing rates. If you are a 501(c)(3), check them out. If not, or you need greater services, be sure to consider the others on our list.
Submit Your Comment
You must be logged in to comment. Click a "Log in" button below to connect instantly and comment.
LOG IN