How to Accept Donations Online
Sign up for a merchant account., Choose how you want to accept payments., Understand merchant account fees., Evaluate merchant account providers., Apply for the merchant account., Understand the advantages and disadvantages of a merchant account...
Step-by-Step Guide
-
Step 1: Sign up for a merchant account.
A merchant account is a bank account that allows you to accept credit card payments.The bank has a processing relationship with the credit card companies.A nonprofit organization can establish a merchant account with any bank or credit card company.
Merchant accounts often have various fees attached to them. -
Step 2: Choose how you want to accept payments.
Decide which credit card brands you want to be able to accept, such as Visa, MasterCard and American Express.
Also, you may want to allow your donors to submit debits directly from their checking accounts.
Anticipate the volume of donations you expect to received and whether or not you will be processing recurring donations., Merchant account providers charge many different kinds of fees.
The kinds of fees and the amounts charged vary.
Compare different financial institutions to find one with a fee structure that suits your needs.Merchant accounts charge two types transaction of fees.
The first is a per-item flat rate that you will be charged for each credit card transaction.
The second is a percentage fee, which charges you a percentage of each transaction.Percentage transaction fees may be assessed in a tiered fashion.
Different types of transactions are classified into specific tiers, each with its own rate.
Other fees associated with a merchant account may include set up fees, address verification, monthly and annual maintenance fees and gateway access fees., In addition to considering the fees they charge, evaluate merchant account providers based on the services they provide.
Different merchant account providers have different software requirements and customer support options.Some institutions provide you with software and payment acceptance options, while others require you to purchase these separately from a different provider.
Find out how easily you can customize your website, invoices, payment forms and payment communications.
If you don’t have a lot of technical expertise, you want these processes to be as automated as possible.
Choose a merchant account provider with a proven reputation of secure transactions that protect your donors’ financial information. , Once you have chosen a provider, understand that they may put you through a rigorous application process before allowing you to accept credit card payments.
Expect to provide financial records and information about your business model.
In addition, you may be asked for personal financial information.
You should also expect them to run a credit check on you., With a merchant account, the name of your organization appears on all financial transactions, so donors see your name on their credit card statements, which is important for branding.
Also, funds arrive in your account quickly.
The disadvantages of a merchant account are the expensive fees and the complicated set-up process. , Log in to your merchant account software.
Enter your donor’s payment information.
Click on the collect payment button.
The credit card transaction will then be processed, and the funds will be deposited into your account. -
Step 3: Understand merchant account fees.
-
Step 4: Evaluate merchant account providers.
-
Step 5: Apply for the merchant account.
-
Step 6: Understand the advantages and disadvantages of a merchant account.
-
Step 7: Begin accepting payments.
Detailed Guide
A merchant account is a bank account that allows you to accept credit card payments.The bank has a processing relationship with the credit card companies.A nonprofit organization can establish a merchant account with any bank or credit card company.
Merchant accounts often have various fees attached to them.
Decide which credit card brands you want to be able to accept, such as Visa, MasterCard and American Express.
Also, you may want to allow your donors to submit debits directly from their checking accounts.
Anticipate the volume of donations you expect to received and whether or not you will be processing recurring donations., Merchant account providers charge many different kinds of fees.
The kinds of fees and the amounts charged vary.
Compare different financial institutions to find one with a fee structure that suits your needs.Merchant accounts charge two types transaction of fees.
The first is a per-item flat rate that you will be charged for each credit card transaction.
The second is a percentage fee, which charges you a percentage of each transaction.Percentage transaction fees may be assessed in a tiered fashion.
Different types of transactions are classified into specific tiers, each with its own rate.
Other fees associated with a merchant account may include set up fees, address verification, monthly and annual maintenance fees and gateway access fees., In addition to considering the fees they charge, evaluate merchant account providers based on the services they provide.
Different merchant account providers have different software requirements and customer support options.Some institutions provide you with software and payment acceptance options, while others require you to purchase these separately from a different provider.
Find out how easily you can customize your website, invoices, payment forms and payment communications.
If you don’t have a lot of technical expertise, you want these processes to be as automated as possible.
Choose a merchant account provider with a proven reputation of secure transactions that protect your donors’ financial information. , Once you have chosen a provider, understand that they may put you through a rigorous application process before allowing you to accept credit card payments.
Expect to provide financial records and information about your business model.
In addition, you may be asked for personal financial information.
You should also expect them to run a credit check on you., With a merchant account, the name of your organization appears on all financial transactions, so donors see your name on their credit card statements, which is important for branding.
Also, funds arrive in your account quickly.
The disadvantages of a merchant account are the expensive fees and the complicated set-up process. , Log in to your merchant account software.
Enter your donor’s payment information.
Click on the collect payment button.
The credit card transaction will then be processed, and the funds will be deposited into your account.
About the Author
Jacqueline Sullivan
Professional writer focused on creating easy-to-follow creative arts tutorials.
Rate This Guide
How helpful was this guide? Click to rate: