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    Home»Business»Do Credit Card Companies Charge Processing Fees to Nonprofits?
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    Do Credit Card Companies Charge Processing Fees to Nonprofits?

    AustinBy AustinApril 25, 2022Updated:July 2, 2022No Comments3 Mins Read
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    One question you may have is: Do credit card companies charge processing fees to nonprofits? You’re probably not the only one. If you’re looking for a way to reduce your processing costs, there are some ways to do it. First, you can consider using a merchant account. You’ll need to establish a bank account, which will allow you to accept credit card payments. You’ll also need a payment processor that can help you process donations.

    Nonprofits have a unique situation. While most donors aren’t aware that merchants charge processing fees for charitable donations, many are glad to pay the fee for their support. A Classy survey found that over five-fifths of donors covered transaction fees. If you’re wondering whether or not your nonprofit’s processing fees are worth it, read on. Then, decide if you’d like to continue using that processor.

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    Credit card companies may charge nonprofits transaction fees if they accept credit card payments. These fees vary from merchant to merchant and are generally between two and three percent per transaction. Some nonprofits decide to charge donors these fees instead of keeping them. A nonprofit should carefully consider its options and choose a processor that meets its specific needs. An excellent payment processing experience can build trust and improve customer retention. So, if you’re considering using credit card processing for your nonprofit organization, check out the top five questions to ask before making the final decision.

    Payment gateways protect the credit card data of the donor. It validates that the person making the purchase is human and avoids fraudulent charges. It also helps to protect your organization’s data by monitoring transactions for fraudulent activity. Nonprofits that don’t comply with these standards risk having their donor’s credit card information stolen. You may be subject to fines for non-compliance.

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