Credit Card Acceptance For Non-Profit Organizations How You Can Improve Your Credit Score Here ph
Most non-profit organizations obtain the bulk of their revenue via various fund-raising strategies. Donations made online, In person, via mail or telephone. Sales of pumpkins for Halloween and Christmas trees. They run thrift stores, community centers, canteens and other retail enterprises. Accepting credit cards is a basic business necessity for them, and setting up the right kind of merchant account and having the optimal processing equipment are key to efficiency and savings for them. Let’s first discuss merchant accounts. There are two basic types-retail and MOTO. MOTO stands for Mail Order / Telephone Order but has come to also include online (Internet) credit card processing. A retail merchant account is best utilized at the point of sale when the customer is physically present and presents their card for payment. In fact, if this type of account is used to take cards for mail or phone or online orders, the merchant may be in violation of their contract, and manually inputting credit card numbers into a terminal also will result in the merchant paying a much higher “Non-Qualified” rate for that transaction. If the non-profit is running a store, great. A retail account will work fine. The next question for a retail merchant account holder is what sort of terminal to utilize. Many non-profits have a “bricks and mortar” store, and in that case a conventional credit terminal next to the cash register or integrated into a computerized point-of-sale (POS) system is fine. However, what about selling those Christmas trees in a shopping center parking lot with electricity but no phone line? Or at fairs, festivals, etc., with similar conditions? For these events the non-profit would be best served to employ a wireless credit card terminal to swipe customers’ cards and get the lowest retail rate. The terminals usually work off packet radio signal and that service is available almost everywhere in the country now. The terminal prints a receipt for the customer to sign. A MOTO account is often mandated by the merchant service provider if a majority of credit cards are not being physically presented by the customer, and this type of account will save the merchant money. Manually keying in credit card numbers and paying a non-qualified rate of 4% or more, versus around 2% for a MOTO account…the savings are obvious and will also keep the merchant compliant with processor regulations.
Some non-profits have a website and accept donations online. Some have employed PayPal or a similar service to process those donations. PayPal is easy to use but expensive, around 4%. The web designer who set up the non-profit’s website can easily build a new “Donate Now” button to route those transactions through a MOTO account and save the non-profit a lot of money. There is a great service I offer many of my own merchants, non-profit and for-profit alike, it is called Trinity and allows processing of transactions three ways- online, cell phone and in-person retail via a swipe bar attached to a personal computer. Sorting out the options is largely a matter of examining the number and type of transactions and dollar volume of same. If a non-profit is not selling very many items per month, a special wireless terminal will not save them money but be actually cost-prohibitive. If they only get an occasional online donation, PayPal may be more convenient than setting up a MOTO account. As always, it is important to not try to make decisions in a vacuum, but in consultation with an experienced and trustworthy account executive from your merchant services provider (MSP) or bank. Please share your thoughts on this by posting a comment below and I'll send you a free gift.
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Do's and Dont's of the Credit Card Game Here pf Futhermore: Credit Card Acceptance For Non-Profit Organizations
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