Stephen Bestbier, VP Marketing and Business Development at iATS Payments, gave a talk on Payment Processing 101 at the CiviCRM User Summit in Washington this past September 2015. Payment processing is an essential part of success in today’s nonprofit sector. However, for those unfamiliar with this process, it can feel daunting. From understanding the intricacies of credit card processing to spotting the differences between different fees and rates, it’s vital for any organization and individual to educate themselves on the basics.
Here is the link to the talk and the slides, as well as a brief summary of the content of the talk (below).
The intricacies of payment processing
Several steps take place from the time a donation is made to the time the money is deposited in the organization’s bank account. These steps are determined by the type of payment provider an organization chooses for their payment processing. Organizations need to decide whether to obtain their own merchant account (funds deposited directly into their bank account) or an aggregated account (funds first deposited into a 3rd party’s account, then dispersed later to everyone who shares that account).
Method of Payments
The best payment processors accept all major credit cards and multiple international currencies, and they will allow givers to donate via credit card or direct debit (ACH). They will also offer secure online donations forms that can be easily embedded in the organizations’ websites.
When comparing fees, it’s important to examine correct pricing structures. Some payment processors may charge interchange rates (fees differ depending on the specific type of card being used) while other payment processors charge flat rates (fees that remain static regardless of the type of card being used).
Another thing to consider when looking at fees is whether the payment processor is collecting additional fees for transactions, PCI , customer support, fraud tools, recurring transactions and many other services that organizations might need.
Credit Card Data Portability is supported by an opt-in community of electronic payment processing providers that agree to provide credit card data and associated transaction information to an existing merchant upon request in a PCI Compliant manner.
Learn more about how hackers attack vulnerable websites and how they target the nonprofit sector in their fraudulent attempts. It is critical for any organization to protect their donor’s information and choose a payment processor that has developed fraud tools to stop these attacks.
PCI is a data security standard created by major credit card companies to set high technical standards to safeguard customer information. Merchant and service providers must meet certain standards of security when they store, process and transmit cardholder data.
Who is iATS Payments
iATS Payments is the trusted provider of payment processing products and services for over 10,000 organizations around the world. iATS provides both the payment gateway and the merchant accounts for organizations to accept one-time and recurring donations by all major credit cards and electronic funds transfer. iATS has served the nonprofit community since 1996, and we understand the unique needs of charitable organizations while offering a cost-effective and efficient means of processing gifts.Payment processing is an essential part of success in today’s nonprofit sector. However, for those unfamiliar with this process, it can feel daunting. From understanding the intricacies of credit card processing to spotting the differences between different fees and rates, it’s vital for any organization and individual to educate themselves on the basics.