Credit Card Processing for Non Profits – It’s Time to Check Your Rate
We recently helped a Non Profit client who had not looked at their credit card processing rate since 1999. As it has now been a decade since their last reduction, they thought it was time to see if the market had changed and if they could reduce their fees. Needless to say, once we provided our analysis and showed them what they should be paying annually, they were shocked! The Processing Brokerage significantly reduced their fees and there are lessons that Non Profits, Associations, and Charities can learn from this case.
What happened to our client is very common for nonprofits as they are naturally focused on their cause and as long as they can accept credit cards, that is good enough for them. If you are a Non Profit reading this right now, this probably sounds very familiar: The last time you looked at your credit card processing was when you decided to take donations online or needed a new merchant account. Since that time, your organization has experienced great growth and success. With everyone being so busy, consistently meeting fundraising goals, and dealing with a scope that has probably broadened; who has the time to look at their credit card processing? Maybe that was you about a year ago and now with a changed economy, your organization needs to change as well. Either way, it behooves you to look into reducing your credit card processing fees further.
There are typically three options that you can take when attempting to reduce your credit card processing fees:
1.) Approach your current processor and ask for a rate review. Every merchant is entitled to a rate review and is something you should do. If this is all you do, this turns into the “all the eggs in one basket” approach as you are relying on your current processor to treat your right.
2.) Request For Proposal. The advantages for running an RFP is that you get proposals from several credit card processors. This approach provides a better chance to achieving a lower rate. The disadvantages for running an RFP is that the process takes a considerable amount of time and its tough to get an apples to apples comparison.
3.) Processing Brokerage. We can negotiate on your behalf with your current processor, we can run an RFP for you that will achieve significant results, and ensure that you are receiving that absolute lowest for your credit card processing. Most Non Profits will qualify to use our Small Business Standard Service that will provide all of those services and more for $360. We are independent experts that work for you and your best interests. We have extensive experience working with nonprofits, reducing their processor fees, and optimizing their interchange fees.
The main thing to keep in mind is that your organization is probably due for a rate reduction. If done properly, your organization should realize several thousands of dollars in savings. The size of the reduction achieved depends on knowing what rate is competitive for you, the right processor, and signing a contract with terms that are fair to both parties.
This entry was posted on Tuesday, November 10th, 2009 at 3:23 pm and is filed under Nonprofit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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