9 Best Nonprofit Credit Card Processing Solutions

Create a list of merchant account providers and payment processors that can match your requirements (online, in-person, or both). To help you get started, consider these questions:

• Does your nonprofit only accept donations online?
• Are you looking to expand your online campaign by attending events that require tools to accept donations in person?

Related: Read our recommendations for the best merchant services.

Narrow down your list by identifying the payment processing tools you need and matching these with what each provider has to offer. For example, if you want to accept payments in person, do you prefer a mobile device so you can move around during events? Or, when considering the best way to collect donations online, decide if you want to sign up donors for a recurring collection, just a one-time payment, or both.

Payment processing methods to look for in nonprofit payment solutions

• Card-present/mobile
• Card-not-present/online
• Recurring payments
• Invoicing
• Virtual terminal
• ACH/e-check

Most payment processors offer additional features such as a website builder, rewards program, accounting tools to track NGO payments, and more. However, be sure to watch out for extra fees that sometimes accompany these functions. Start a tally and compare, then remove those with the highest add-on cost from your list.

Now that you have a solid list of payment processor options, it’s time to take a closer look and find out which ones support the donation tools you need.

For example, not all payment processors that allow you to accept donations online have the ability to set up registration for events or manage auction bids. In the same way, not all in-person payment processors can manage inventory to sell tickets or other merchandise.

Tools to look for in nonprofit credit card processors

• Donate button
• QR codes
• Shareable payment link
• Hosted donation page
• Membership/sign-up forms
• Event management
• Ticket and merchandise sales

You’ll also want top-notch security and maybe even business management features from your merchant account. Think about what other software you’re using and what you want from your payment processor. Ideally, these features are built-in and will not require any additional integration (and fees). Compare the security features of your shortlisted nonprofit credit card payment processing options and the additional account features they provide.

• Fraud detection and chargeback management: Nonnegotiable. The credit card processor should have level 1 PCI compliance to take care of data security as donors and integrated third-party software access your platform. Learn about PCI compliance.
• Marketing: Marketing tools are necessary for nonprofit organizations. Make sure that your payment processor has a variety of marketing tools in place to launch different kinds of campaigns.
• Reporting: At the minimum, a nonprofit payment processor should have built-in basic reporting tools that track processed transactions and marketing campaigns.
• Easy-to-use platform: Look for a payment processor with a platform that’s easy to navigate and set up tools that don’t require complex coding skills.

Note that advanced features such as analytics, multiple access, and accounting integrations may require extra fees. Decide whether that additional cost is worth the role that these functionalities play in your nonprofit.

Once you have all the features you need in place, it’s time to consider the cost of accepting donations. To do this, you need to identify the size of donations your nonprofit processes in a month or year.

Your goal should be to accept the most donations with the lowest nonprofit credit card processing fees. If you process less than $10,000 in donations per month, look at payment processors that charge flat rate fees (example: 1.9% + 49 cents). Otherwise, consider payment processors with interchange plus pricing like Helcim and Dharma, which offer big discounts to large volume transactions.

Before disregarding payment processors that charge a monthly subscription straight away, consider what comes with these paid plans. It may have interchange-plus rates and/or free payment and donation tools that may actually save you money depending on your processing volume.

Nonprofits accept credit card donations the same ways as traditional businesses accept payments via credit cards. They will need a merchant account that can process credit card transactions and a payment gateway to capture and encrypt credit card information while data is transmitted to the relevant banks and card networks.

The best payment system for nonprofits depends on your organization type. If your nonprofit is steadily growing in donations, Helcim is the best option with its automated volume discount and all-around payment processing tools at zero monthly fees.

If you are running a new or small nonprofit, the best payment system would be one that provides an all-in-one solution like Square or Donorbox to quickly get you started. For established nonprofits, platforms with advanced tools like iATS and Charity Engine and highly customizable payment processors like Stripe are the better option.

Yes, nonprofits are required to pay credit card processing fees if it is to accept cashless donations. However, nonprofits that fall under the category of “charities” enjoy much lower transaction rates. There are also options for donors to cover the fees for using the platform.

Like every payment processor, Square charges fees for nonprofits that use the platform to collect donations. Note that Square offers free POS and payment processing, but it does not provide discounted rates for nonprofits.