Merchant Accounts fоr Charity Orgаnіzаtіоnѕ

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Merchant Accounts fоr Charity Orgаnіzаtіоnѕ

Payment Gateway For Charities, Not-For-Profit Donations, and NGOs.

MCC 8398 is the Merchant Classification Code that most of the credit card processing companies use across the world including India, UK, US and other nations for Charitable organizations that accept donations.

Getting a payment gateway for charities, not-for-profit donations an NGO has become extremely difficult. Still, if the profile of the organization is right, then some payment gateways companies may offer merchant accounts to these organizations. In this article, you will get an extensive understanding of what payment processing companies are looking for in a charity merchant account application. Payment gateway companies and merchant account providers evaluate the Application, KYC documents and the reputation of the organization. Sometimes the credit card processing company may request the merchant to provide additional credentials than those mentioned in the KYC list provided by the acquiring Institutions.

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Charity Donation Payment Gateway

When the underwriters look at your application for a charity or donation payment gateway, then they try to identify the risk profile. The more documents you share and the more transparent you are with the credit card processing institution, the better the chances will be for you to get a charity donation payment gateway.

To improve the chances of getting a Charity Donation payment gateway merchant must send all the documents at one time. The team at Quadrapay has seen many instances of merchants sending the documents separately at different intervals. What we’re trying to say is that if you send all the KYC documents including the charity registration at one time, then the underwriters find it less time-consuming and easy.

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Charity Payment Gateway in the UK.

Some payment service providers in the United Kingdom may accept applications for charity payment gateway. They usually prefer not to offer Credit Card processing solutions to political charities. They are also not comfortable in onboarding limited companies that claim to be a charity organization. If the NGO for charity is registered with government institutions like the UK Charity Commission then the possibility of getting a solution for Card processing increases. The merchant should keep in mind that only the registration with the Charity Commission will not help, but the processor will also ask for additional supporting documents. Payment processing companies in the UK that offer Charity payment gateway to registered UK charities reduce the risk by implementing various risk reduction and fraud filtering features. These features include.

  • 3D security filtering. Most of the times merchants in this classification code do not get a 2D payment gateway. You should consider a very high possibility that all charity payment gateways in the UK may be 3d secure.
  • Address verification system. Payment processing companies implement a validation tool known as Address Verification System(AVS). This tool matches the address information on the order with the one that is present on the credit card account.
  • Proactive fraud detection. Payment processing companies regularly monitor these accounts to reduce the fraud and chargeback ratio. These days Credit Card processing companies use advanced tools that can help to identify risk-oriented merchants on a near-real time basis.

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Why Charity Payment Gateway?

Founding members support most of the charity organizations. These founding members usually contribute to the initial funding. As the charity grows, the responsibility of the founding members also increases. With the help of charity payment gateway, these organizations can readily accept contributions from a massive full of supportive individuals.

Most charities are very transparent and display the expenses on the website. This display of the cost motivates others to also contribute to the social cause. Charities have donated a lot to humanitarian causes. There are a lot of recognized charities assisting people in different locations including Africa, Asia and other parts of the world. When people reach the level of self-realization and self-actualization, then they start finding ways through which they can contribute and give back to the society. Charity is one of the most satisfying things, and that is why organizations like NGOs require Charity payment gateway.

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Free Payment Gateway for Charity

Sometimes it can be challenging for charities to pay a setup fee and that is why the search for free payment gateway for charity. In many cases, the setup fee is usually waived by the payment processing company, and charities enjoy free setup. Although charities may get free set up, they are subject to the transaction fee as well as other charges. Most of the times the transaction fee is decided by payment processing Institutions on a case by case basis. Existing processing history, Reputation of the charity, Recognition from different government agencies and entities helps underwriters and processors to offer reduced pricing to charity organizations.

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Features of Best Payment Gateways for Charity

There are many payment gateway companies offering solutions to recognized and genuine charities. It is essential for humanitarian organizations and not for profit organizations to look at multiple factors so that they can find the best payment gateway for the charity organizations. A couple of factors that can help you to determine if the processor is perfect for your organization is listed below.

  1. Setup Time frame: If the payment processing institution is taking a lot of time in on-boarding you then there may be a possibility that the payment processing institution may take time in releasing your funds also. A professional organization always prefers to respond to merchants in the quickest time frame possible.
  2. Setup Fee: Some processing institutions charge a setup fee, but some others do not charge it. Even if the payment processing institution is charging an upfront fee, you should carefully look at other charges that are charged by the processor. Sometimes the pricing model with setup fee may be better than a pricing model without the setup fee.
  3. API Integration Capabilities: If the charity payment gateway is easy to integrate, then it helps the not for profit organization save a lot of time. Not for profit organization should ask the payment processing company or the credit card processing company if they have ready-made plugins. Most PSPs display the list of readymade plugins on their business website.

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Payment Gateway for Charity in India

Many temples and non-government organization in India are already using payment gateways. It has become challenging over the last few years mainly because of business entities acting like charities and generating forced donations via call center activities. Indian payment gateway companies understand this fact very well. This is the reason why almost every payment gateway company in India considers Charity as a high risk industry, and they consider charity merchants as High risk Merchants. Still, if the Indian organization that is requesting payment gateway has a great reputation and required KYC document, then there may be a strong possibility of getting a merchant account and payment gateway in India.

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Vpos Payment Gateway for Charity

The most common mode of transaction among the charity organization is online credit card processing. Usually, credit card acquirers do not offer Virtual terminal or Moto accounts to Charity organizations. Having said that Charity organizations in the United States can accept echeck transactions and for this, they can also get a Vpos payment gateway. Vpos means a Virtual point of sales. It is an excellent solution offered by a well-known company in the United States. They provide check22 solutions. Charity organizations can efficiently collect checks within 5 minutes by using Vpos. Later checks can be deposited into the bank account. Electronic check also clears almost same way like a regular check. Checks mostly clear within 24 hours in the US excluding bank holidays.

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Online Recurring Payment Gateway for NGO.

Contributors sometimes prefer to contribute a specific amount of money every month to the charity. To accept this kind of payment the NGO must have an online reoccurring payment gateway. To get this facility, the NGO must request the payment service provider. Most of the time’s payment service providers refrain from offering subscription options to charities. With the reoccurring option, contributors need to submit the card details on the website only one time and they are billed every month from the same card for the specific amount.

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Echeck Payment Gateway for Online Donation offers the facility of recurring billing.

Unfortunately, many ACH processors have already burned their hands, and that is why they are always extremely cautious before onboarding merchants from this industry. With Echeck and ACH payment processing solutions merchants from various high risk industries can except reoccurring payments. Some of the most common Industries that depend a lot on ACH/echeck options are Web design, SEO, Nutraceuticals, Credit repair, Online dating, Professional services, Travel, Pharmacy and Nutraceuticals.

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Why Quadrapay helps NGOs in finding an international payment gateway?

As a consultant, we work with merchants from various industries. We realize that just because of a handful of fraud merchants the genuine charities are facing massive challenges in finding reliable payment gateways. Our team wants to offer a transparent platform to all the charities and help them in the maximum possible way. To benefit charities and not for profit organizations with payment gateway and merchants account we have created this page. To make things even more transparent, we share the links of few payment processing companies directly on this page so that charities can easily and quickly apply to relevant processing institutions. We may make some commission as we are resellers of many processing companies.

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How Quadrapay can help me to find the best payment gateway for NGO in India.

Quadrapay works as reseller agent of many payment service providers. Our responsibility is to find merchants and pass applications to payment processing institutions. Quadrapay can easily connect NGOs that are looking forward to getting best payment gateway and merchant account solutions from India and abroad. Most of the times the links of these payment processors are available on pages of our website. Sometimes we may have to manually forward the details of the merchant to the credit Card processing Institution. We request merchants at the time when they submit the details on our website to authorize us to forward the details to relevant payment service providers.

We aim to create a platform for global merchants from various Industries including charitable and not for profit organizations. If you need more assistance, then email us on [email protected], and we will be happy to answer the questions related to NGO payment gateway in India and other parts of the world.

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NGO Donation Payment Gateway – Settlement Time Frame

If the NGO donation payment gateway is from a domestic processor and the profile of the organization does not attract significant risk, then there may be a possibility that the processing company may offer settlements in these forms

  • T+2. Transaction day plus two working days.
  • T+3 Transaction day Plus three working days.

In case if an Offshore payment processing company provides the NGO donation payment gateway, then the settlement may be delayed, and the merchant may also be subject to a rolling reserve and arrear as well.

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Credit Card Processing for Charity and Chargeback Prevention.

Most of the times when people donate to a charity they do not raise a dispute or chargebacks. It is hard to find people who give by their own will and then request money back. It is the reason why payment processing companies expect a meager Chargeback ratio or Nil chargeback ratio for this merchant classification code(MCC 8398). In case if the payment processing company realizes that the charity organization is getting a lot of chargebacks on the credit card frauds, then they may suspend or put the processing account under observation. Organisations can reduce fraud by using various chargeback alerts and notifications services.

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Credit Card Processing Fee for Charity Merchants.

The Card processing fees for charity institution varies depending upon multiple factors. The rate of the transaction is usually kept low. Most processing institutions understand that charity account does not add a substantial margin of profit. Charity institutions typically don’t have a business plan like other industries. Since they do not have a business plan, they are not in a position to forecast the donations they will receive. It is also a reason why many payment service providers refrain from working with charities that do not have previous credit card processing history.

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Support for Credit Card Charity Donation Gateway

Charity organizations require regular support from the payment gateway Institution. Without proper support from the Credit Card Processing Company, charities may not be able to offer a better experience to those who are interested in donating online. Most payment service providers provide 24X7 support to the merchants for billing and technical assistance. The more support channels, the better it is for the merchants. Most of the time’s payment processing institutions offer support ticket system to merchants. Many times High Risk Payment Processing companies require merchants to display the billing support number of the payment processing institution. This billing support number is supposed to be listed on the prominent location of the website. If there is any dispute, then the cardholders contact the processor directly. It helps the processors in reducing fraud and chargeback percentage.

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Credit Card Processing for Charity Events

Many institutions organize Charity events, and these institutions also require Credit Card processing. These events are a time-sensitive, and many payment processing companies don’t support this model. In few parts of the world Charity organizations prefer to use Point of sale terminal or Credit Card processing terminal to accept donations. Temples, Churches, and other religious places usually get this kind of devices from local acquiring banks or local payment service providers. With international payment gateway, charities get the capabilities of multicurrency acceptance transactions. They can accept transactions from different nations.

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Charity Credit Card Processing Fees

Non-government organizations(NGO) pay MDR(merchant discount rate), Per transaction fee, Setup Fee, Monthly charges, Interchange and conversion fee. These are some of the processing fees that charities may be subject to. As mentioned earlier in this article payment processing companies consider this industry to be a low volume industry. Since the industry is a small volume industry, they also do not push a lot of transaction fee on the charity organizations. Some payment service providers actively contribute to charity by themselves. This activity is done as per the Corporate Social Responsibility policy of the Credit Card processing institution. Most of the times processors decide on the pricing and fee structure on a case by case basis.

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User Interface of Donation Merchant Account

It is quite essential for the user interface to be friendly for the merchant as well as donors. The user interface should be simple enough and should not be complicated. Sometimes a complicated user interface can result in less engagement, and the donor may move out of the site without contributing to the humanitarian cause. Payment processing companies take the User experience very seriously. Processors consistently try to make the payment processing platform as user-friendly as possible. Most of the payment processing platforms for donation are mobile responsive. It helps donors to contribute from their mobile phones as well as tablet devices.

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Merchant Account With Payment Link for Donation

Getting a Virtual Terminal on Moto can be very challenging for donation. Charity organization can send payment link to donors. With the payment link option, the charity does not need to collect the card information over the phone. They need to send an email to the donor. The donor finds a payment link on the email, and after clicking the payment link, a hosted payment page opens on the mobile device for the laptop. The donor can now submit credit card information.

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Credit Card Transaction flow for Donation through the Payment Gateway.

The credit card transaction flow works the same way for donation as it works for any other industry. Donor visits the website of the NGO and Clicks on the donate button. After clicking the donate button the donor, lands on a hosted payment page. This hosted payment page is located on the secure servers of the Credit Card Processing company. On the payment page, the donor submits the credit card information. Through the payment gateway, this information travels to the card brand infrastructure. The card brand decides whether the approval needs to be issued by the card brand itself or needs to be forwarded to a card issuer. The result of the transaction moves backward in the same direction, and the Not-for-profit organization receives the transaction response on the backend of the website. The Donor also receives a confirmation or decline message on the front-end of the site.

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How to get a Free Quote for Online Donation Payment Gateway?

To get a free quote for online donation payment gateway, you can send requests to multiple payment processing companies. We recommend you to contact at least four service providers so that you can identify the most economical and the most beneficial acquirer for your charity. After getting multiple quotes, you should carefully look at various charges that you are subject to pay for using the merchant account. Carefully look at the features and benefits of the payment gateway. You should also check if the solution accepts payments from various countries and in multiple currencies.

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ACH Donation Payment Gateway.

Although most of the ACH payment processing solutions from the USA consider donation to be a high-risk sector some processors may consider applications from the highly recognized charitable organization. With ACH donation payment gateway not-for-profit organizations can get a Virtual Terminal/MOTO as well as API integration. Most of the times ACH transactions are done within 24 hours. It can help the charitable organization in collecting the donations fast. Most of the times the transaction fees paid is a lot lesser than Credit Card processing.

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Best Ways to Integrate Online Payment Gateway For Donation

After getting an online payment gateway for the donation, merchants are supposed to integrate the processing option to the not-for-profit website. There are several ways by which the integration can take place. For online payment gateway, the most straightforward ways would be API integration or plugin based integration.

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What is API integration for Donations Payment Gateway

Most processors offer extensive document known as API integration document. This document works as a white paper for integration. Technical experts read this API document and create a parallel code that helps the website to coordinate with the payment gateway.

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What is Plugin Based Integration for Donation Payment Gateway?

In today’s world, most of the websites use some CMS. CMS is also known as Content Management System. Most well-known CMS used by NGOs around the globe are WordPress with Woocommerce, Magento, Prestashop, and Joomla, etc. Credit Card processing companies usually display the available plugins on their business website. With plugins, integration can be achieved in the shortest time frame. Merchants can download plugins and then upload it on the CMS. After uploading the plugin, the merchant needs to activate it. Post-activation secret values related to the Merchant ID or MID needs to be placed inside the setting section. After submitting all the vital details, the merchant can perform a test transaction. Test credit card numbers can also complete test transaction. Your payment service provider can offer these test credit card numbers if you request them over an email or phone. After a successful test transaction, the merchant can accept donations.

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Why getting a Payment Gateway for Donation in India is so difficult?

Some organizations use call centers to generate donations. It is a prohibited activity, and this is the main reason why most of the payment gateway companies do not offer Credit Card processing for donations in India. One of the highest searched keywords on Google for donation payment gateway in India is 2D payment gateway. We find it ironical to see that’s so many people search for a non-secure solution. 3DS or 3D secure solution helps charitable organizations in maintaining the payment gateway for a longer time. You may get a donation payment gateway in India but remember if the chargeback ratio exceeds 1% then your processor can terminate and shut down your account anytime. It is vital for NGOs in India to reduce the chargeback ratio. Indian NGOs accept donations from within the country and also from International donors. Payment processing companies must use 3D secure filtering, Address verification system(AVS), Velocity check another fraud filtering tools to mitigate and lower the credit risk.

A reputed charity that is recognized and has all the legal document may stand a chance to get a payment gateway. If the same institution starts involving itself in the practice of forcing people to donate by initiating calls to random people, then this can create a problematic position for the stability of the payment gateway and merchant account. Payment processing institutions are qualified enough to identify if the merchant is involved in these kinds of activities or not. Sometimes just by looking at the website of the NGO operating in India people from the payment processing industry can easily understand the genuineness of the organization. An easy way or tracking the authenticity of the charity website is by looking at the web traffic. If a merchant has projected a monthly donation volume of $10,000 and if the site does not even have the traffic worth $200 every per month then it becomes difficult for the processing institution to onboard that India based NGO.

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NGO Payment and Industry Overview.

For many nonprofit organizations, from the largest of popular charities to the smallest community groups, giving people the option of donating by credit or debit card usually proves worthwhile. One-off donations tend to be more significant and, perhaps most importantly, the likelihood of receiving recurring contributions at regular intervals is significantly increased. However, to begin accepting this type of donation, the same rule applies regardless of whether or not an organization intends to profit from their business or not.

You must first either enlist the services of a third party processor, set up a relatively expensive credit card processing program or else, and as is most common, seek out a merchant provider and acquire a merchant account for charity.

This can take some time, due to necessary credit checks and form filling. But once a merchant account for charity is in place, the speed and ease by which funds are transferred do provide a distinct advantage when it comes to a non-profit organization receiving its much-needed cash.

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Potential Concessions Available for Charity Organizations

Although it is often the case that merchant account providers will offer concessions for non-profit organizations such as free set up and discounted fees, charges between providers do vary considerably, so it pays, in the long run, to be exceptionally through when doing your research.

Companies should always be able to provide precise and accurate information on pricing, not merely in their small print, but through their sales reps and customer advisers, should queries arise.

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Choosing a Merchant Account for your Charity Organization

Naturally, when choosing a payment gateway for ngo website, there are many other factors to take into consideration.

Firstly, it would be prudent to ensure that the name of one’s charity will appear on the donor’s credit card statement as opposed to that of any third party. This is important as it avoids customers confusion, which in a worst case scenario could result in cancellation of initial and subsequent donations should a customer dispute the charge.

Secondly, it is always worth checking which types of card are accepted, bearing in mind per-item charges for some may be higher than others and taking into account the frequency of donations received through each of the leading financial institutions.

Thirdly, if one’s charity is web-based or else accepts donations via a website. Some best merchant account for charity may guarantee 24-hour service. So you have to watch out for the company you would choose for your charity organization.

Finally, but by no means least importantly, it is vital to ensure that security (particularly online security) comes guaranteed. Even if you are using online payment gateway for ngo that accepts less than $1000 every month then also you need to make sure it’s secure.

As previously stated, fees do vary, but do not assume a merchant account provider will automatically charge more should all the above requirements be met. In fact, these should come as standard. Anything less and they’d be doing your organization a disservice. Also, when it comes to fees for charity, it is always worth checking out one’s official entitlements regarding necessary expenditure. Don’t say yes only by looking at in online advert that states “free payment gateway for ngo.” Look at the nitty-gritty and identify the real rates.

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NGO with Payment Gateway

There are payment gateways for ngo providing services specifically to non-profit organizations. These providers usually have lower rates and fees and a history of serving non-profits and NGOs, so they understand your specific needs.

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Donation payment gateway integration in WordPress

let’s imagine that you have already received a donation payment gateway and now you’re looking forward to finding the best way to integrate to your WordPress website. In the previous section of the article, we have already mentioned above two methods of integration. API and Plugin based integration. You should ask your payment gateway company to provide you a WordPress plugin in zip format. With the help of the WordPress plugin, you may be able to start accepting credit card on your not for profit website in less than 5 minutes if your account is approved.

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Bankim Chandra
Bankim Chandra
Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.