Funds are the primary source of income for non-profits. They are essential for continuing operations and supporting the mission. You can call fundraising the heart of a nonprofit. Donations through credit cards are gaining popularity, and to process credit card payments, the organization needs a payment processor. In other words, a merchant account is required to process and receive payments quickly.
People prefer to join the non-profit’s membership program. Membership has a monthly or yearly fee, and payment processors process this fee, making life easy for the member and the organization.
A merchant account also pays for these items if the non-profit sells items like T-shirts, mugs, or keychains. You will not have to go to the store physically to buy the item—everything is done digitally.
Another objective of a merchant account for non-profits is to accept ticket payments for a fundraising event.
A secure channel is needed to welcome ticket payments and other charges from the attendees.
The payment processing process starts with a donor making an online donation or purchasing event tickets, merchandise, or a membership. With the help of a tablet, smartphone, or computer, the supporters can contribute to the nonprofit. Except for cash or checks, every payment has to go through a payment processing system that verifies it before being transferred to the nonprofit's account. An online donation page of a nonprofit, a text-to-give service, or a mobile giving app is used at the first stage of the donation, where the credit card or debit card information has to be entered. When this information is entered, it forces the payment processor to complete a series of backend tasks.
After stage one, the amount goes through the payment gateway. The purpose of the gateway is to ensure the credit card is not fraudulent and to confirm if the individual donating is human and not a robot. The payment gateway confirms the credit card's validity and reviews other information, such as names, addresses, and security codes. The gateway notifies the donor through the donation website if the card is rejected. If there is no issue, the payment processing continues.
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