Last updated on March 17th, 2025 at 10:02 pm
Credit Card Processing for Churches: An Insider’s Guide
Most churches have started using credit card processing solutions to accept donations and tithes. By offering a card payment option, these churches provide a convenient donation option to the contributors. QuadraPay has been providing card processing solutions to churches since 2016.
Our team has created this extensive guide that explores all the factors related to processing credit cards for churches. We have discussed various aspects such as the application process, KYC requirements, and pricing. We are confident that after reading this guide, you will have a detailed understanding of what payment processing for churches is all about. Let’s begin.
What Is a Church Merchant Account?
A church merchant account is a specialized credit card processing solution designed for churches and cathedrals. With this kind of merchant account, churches can collect payments from donors and church members. This payment can be for the contribution towards the church development or for the purchase of the merchandise offered by the church store.
Why Do Churches Need Credit Card Processing?
Traditionally, churches have always been dependent on cash and check-based donations. However, those payment methods had various problems. By using the right credit card processing solution, churches effectively eliminate those challenges.
- Convenience for Donors. Cash transactions are no longer convenient for donors. Most churchgoers prefer to make contributions using credit and debit cards. When a church accepts card-based payments, then the overall donation increases.
- Security & Transparency. By accepting digital payments, churches and religious organizations present transparency to the members and donors. It becomes easy for contributors to get confirmation of the payment. It delivers the peace of mind to the donor that the contribution has reached the right organization and is not stuck with the individual who collected it.
- Selling Merchandise. Almost every church has a store where they sell Christian books like theological texts, inspirational literature, and devotional books. The store may also sell other religious items, including crosses, rosaries, religious jewelry, and prayer beads, as well as religious artwork. Some of the church stores also sell devotional CDs, DVDs, gospel music, T-shirts, hats, and other clothing items with religious themes. To sell all these products, churches must have credit and debit card readers.
- Selling Event Tickets. Churches organize various religious events for which they sell event tickets. These events may include religious conferences, coaching, retreats, workshops, or any other special events. Church members purchase the tickets to these events and make transactions on credit card readers for churches.
- Additional Services. The other services that churches can accept payments using credit card processing solutions include church membership fees, renting out facilities for weddings, conferences, selling food and beverages during church events, gatherings, or fundraisers; and religious education classes, seminars, or training programs.
Types of Payment Processing Solutions for Churches
Online Payment Systems for Churches. It is a great solutions for those churches that have a website. Generally, churches have a donation page where members can make a one-time donation or opt for a recurring payment. Our online payment gateway can handle all the transaction requirements of any church website.
Credit Card Terminals for Churches. Many churches have a donation office or souvenir store where they sell religious items. Church members generally make purchases of these products on Sunday Mass and any other religious days. Some busy church stores receive massive orders every day as they may have regular visitors. Our card machines can accept all types of credit and debit cards. These terminals are easy to integrate with popular church POS systems.
Compact Credit Card Readers for Churches. These card processing machines are smaller in size compared to regular credit card terminals. These credit card readers are used in many retail locations like restaurants, pizzerias, and medicine stores, but these machines are specially tailored for church environments. These small card readers are available as a complete system or just a small attachable reader that can be connected to a smartphone. Church volunteers generally carry these card readers to collect donations on the go from Christians.
Church POS Systems. A Church POS (Point of Sale) System is a software and hardware solution used by churches to manage various aspects of their day-to-day operations. This typically includes financial management, inventory management, and member engagement. A church POS system is connected with a credit card reader for processing digital payments. The system keeps close track of the stock levels of items sold by the church, such as religious books, Christian clothing, and other items. It also maintains proper accounting of the donations received from the members.
Credit Card Processing Pricing for Churches
Payment processors offer three types of pricing models to churches and religious organisations. Each of these models has its own advantages and disadvantages.
The interchange plus pricing model is one of the most common structures that is offered to churches across the US and the UK. In this structure, the merchant pays the interchange fee plus a fixed processor markup. While this is a very cost-effective and highly transparent option. However, it can be very complex to track the variable into change rates.
The next model is called the tiered pricing structure. Here the transactions are categorized in three different types, such as qualified, mid-qualified, and non qualified. This structure is easy to understand; however, in such a structure, churches pay higher fees for rewards and business cards.
The simplest pricing model is called the fixed pricing structure. The processor charges a fixed percentage on each transaction. This is a good structure for those churches that can predict their cost and have irregular transaction volume. Keep in mind that fixed pricing can be expensive when processing large donations.
Choosing the Best Credit Card Processing Solution for Your Church
To choose the best credit card processing solution for your church, you must look at some of the most important factors.
Pricing. The first thing that you need to look at is the pricing. Churches generally operate on tight budgets, and that is why it is extremely important to work with the payment service provider that believes in working on affordable terms. Search for a payment service provider that offers discounted transaction fees for non profits.
Transparency. You should work with the provider that believes in transparency. The agreement should not include any hidden charges. When you sign up for a church payment processing account, make sure that you read the pricing carefully, especially looking at fees for account setup, monthly minimum charges, and early termination fees.
Recurring Payment Support. Many of the contributors would be interested in contributing a small amount each month for this; your church should have the recurring payment collection facility. The provider you work with should be okay with subscription payments so that donors can contribute regularly.
Integration with Church Management Systems. The payment processor should be integrated with your existing church management system. It is important for the credit card processor to offer more integration for these softwares. This way you will be able to manage inventory and sales reporting.
Omnichannel Payment Support. It will be better if you work with the omnichannel payment service provider that allows you to accept payments over the internet through the church website and also at the store in your church where donors can make face-to-face donations. This way, you will not have to choose two providers for online and retail transaction processing.
How to Set Up Credit Card Processing for Your Church
Step 1: Choose the Right Processor
The first thing that you must do is to choose the right processor. We suggest you evaluate at least three payment service providers. By doing this, you will be able to compare the features and find the most affordable option. Once you have identified the right payment service provider, it is time for you to gather the documents.
Step 2: Gather the Necessary Documents
You will have to send the church registration document or any similar document that allows your church to operate and accept contributions from members. It is important for you to note that only registered churches can apply for a credit card processing solution.
Step 3: Submit Documents for Review
Once you have gathered all the documents, you can send them to the payment service provider for review. The underwriters will evaluate the risk profile, and based on their analysis, they will come to the judgment whether to approve your account or not.
Step 4: Account Approval & Setup
If your account is approved, you will receive the contract with the term sheet. You will also get the logins to the payment gateway. Next, you can start the integration and setup process.
Conclusion. Final Words.
By adding the right church payment solution, you may be able to increase donations. It will offer convenience to the members while ensuring high security for transaction data.
If you need any further information about how your church can efficiently accept credit and debit card payments online or through a retail terminal, do not hesitate; just contact us. We offer credit card readers as well as online payment solutions for churches. We can also assist you with the best deals on church point-of-sale systems. If you have any questions regarding church merchant services, then please email us at [email protected].
