Most nonprofit organizations depend on donations for their cause to survive for a long time. However, with today’s technology, many donors choose to donate online since it’s faster and more hassle-free than the physical delivery of donations.
There are many nonprofit payment processing options that every organization can use. This is a safe tool that many donors use when transacting online. A payment processor, such as Acceptiva, handles all the information and transaction that will lead the donor’s donation to the nonprofit organization’s finances.
Why is a payment processor important for nonprofit organizations? For every nonprofit organization, it’s essential that all channels of donation are available. Online transactions are the norm nowadays, which is why payment processors have undoubtedly made its way as a primary option for making donations.
Payment processors are not limited to donations. They can also be used for other transactions such as online selling of merchandise or tickets if your organization has fundraising events. With nonprofit payment processing, these transactions become more accessible, and less paperwork is required.
How Exactly Does A Payment Processor Work?
The steps on how a donation reaches the nonprofit organization’s funds are quite simple. It’s merely just like depositing money in a bank.
- First, the donor needs to connect where his or her funds are located to the organization’s payment processor. Debit or credit card payments are the most common form of donation.
- Once the donor’s financial information is duly established, the donor then makes the contribution. He or she enters the amount she wants to give and then opens it to the payment gateway.
- The payment gateway redirects the funds to the merchant account of the payment processor. In some instances, the organization holds the merchant account. Some merchant accounts are owned by the payment processor to verify and make every transaction safer thoroughly.
- The donation is transferred to the organization’s account. The processor deposits the funds to your organization within five business days.
How safe is it to use payment processors?
Money transactions need the highest level of security. As such, payment processors are a perfect option for every nonprofit organization.
Every payment processor undergoes a thorough review by the Payment Card Industry so that it follows the strict security standard mandated by law. This helps protect sensitive personal information and track transactions.
Payment processors use encrypted methods to protect accounts from hackers. There are two methods that are mostly integrated into data encryption: Point-to-Point Encryption (P2P) and End-to-End Encryption (E2EE). Currently, every P2P system undergoes the PCI Council, which is why most payment processors use this encryption method.
Donation is a two-way process, which is why it’s essential to get a payment processor that has established fraud protection. This secures both parties, the donor and the organization, from any fraudulent accounts.
Payment processors have undoubtedly changed the game for every nonprofit organization as it has helped make donations more secure and transactions quicker. Every organization should choose a payment processor that is well established and reliable. Keep in mind that security is the utmost priority in selecting a payment processor so that every transaction is recorded and information is well-secured.