Best Credit Card Processing for Nonprofits
These credit card processing providers offer special discount rates for nonprofits. Save on fees so you can keep more funds for what truly matters.
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- PayPal - Best for local nonprofits
- Square - Best for fast set-up + seasonal nonprofits
- National Processing - Lowest rates
- Stripe - Best for online-only donations
- Dharma Merchant Services - Best for processing $10K+ monthly
- GoFundMe Charity - Best for crowdfunding
Nonprofits have it tough. Funding and resources are already tight.
You don't need high processing fees taking away from your cause.
Luckily, some credit card processors offer reduced processing rates for nonprofits. They understand all the hard work you do and how important it is to keep costs low.
Whether you're a small local charity or a large organization, one of these processors will fit your needs.
Best Credit Card Processing for Nonprofits
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Some of these providers already made it on our list of the best credit card processing companies. Now, the question is what makes each of them a great option for nonprofits and charities.
| Company | In-person | Online |
|---|---|---|
| PayPal | 2.29% + $0.09 | 1.99% + $0.49 |
| Dharma | Interchange+ 0.10% + $0.08 | Interchange+ 0.10% + $0.11 |
| National | Interchange + 0.12% + $0.06 | Interchange + 0.12% + $0.06 |
One thing, all these providers on the list below have no contract, so you don't need to worry about being locked in.
What other features make these providers a great choice?
Let's take a closer look.
1. PayPal
Best for: Local charities that take on-site and/or online donations; if you want a PayPal donation button.
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According to an IPSOS study, people are more likely to donate if PayPal is an option.[1] So why not use it for your nonprofit?
PayPal offers discounted online processing rates for confirmed charities. In-person donations get the standard PayPal Zettle mobile processing rates.
- Online: 1.99% + $0.49
- Swipe, chip, and tap: 2.29% + $0.09
- QR code transactions ($10.01 or more): 1.90% + $0.10
- QR code transactions ($10 or less): 2.40% + $0.05
You need to sign up for a PayPal business account and register as a nonprofit to get the discounted processing rate. Your charity must also be registered with the IRS as a 501(c)(3).
You can take PayPal and Venmo donations on your phone via QR code scan, which is great for on-site fundraisers. You can also easily add a "Donate" button to your website or social media page.
The downside is that the processing fee is high if most of your donations are in smaller amounts. A $10 online donation will cost $0.69. But many feel that having a PayPal button is worth it.
If you're a larger nonprofit, the next couple of processors on the list can help you save more.
Square Reader: Free Mobile Credit Card Reader
- Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
- Accept Credit Cards Anywhere
- Fast Setup, No Commitments
2. Square
Best for: Small charities that want to get started fast; seasonal charities
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Square is one of the best processors for micro-businesses because it's so easy to set up. You can open an account and start taking donations right away. However, there are no discounts for nonprofits.
But since there are no special rates, you can get started quickly without having to prove your charity status or complete other paperwork.
The standard processing rates are:[2]
- In-person: 2.6% + $0.10
- Online: 2.9% + $0.30
- Over the phone/key-in: 3.5% + $0.15
There are no monthly fees. If you don't process anything in a month, you don't pay. This also makes Square ideal for small seasonal charities.
Square has perhaps the most powerful free POS packed with features. You get free mobile processing, payment gateway, virtual terminal, and an online store.
There are many ways to accept donations. You can take cards in-person, online, add buttons to social media, or send a payment link.
Square Reader: Free Mobile Credit Card Reader
- Pay 2.6% + 10¢ Per Swipe for Visa, Mastercard, Discover, and American Express
- Accept Credit Cards Anywhere
- Fast Setup, No Commitments
3. National Processing
Best for: Lowest nonprofit processing rates, especially if you receive smaller donation amounts
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National Processing is known for offering some of the lowest processing rates on the market. The same is true for their special nonprofit rates.[3]
The discount nonprofit rates are:
- Online & in-person: Interchange + 0.12% + $0.06
- $9.95 monthly fee
All users get free mobile processing, payment gateway, and virtual terminal. You can also be eligible to receive a free mobile reader or terminal.
National Processing doesn't have a contract, but there are some conditions to waive the termination fee. You must have a lower competitor quote in writing. If National cannot match or beat the offer, then they won't charge you a termination fee.
4. Stripe
Best for: Large global nonprofits that only receive donations online.
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Stripe is one of the most popular credit card processors for online businesses. They don't publish their discount pricing for nonprofits, but the rate is usually 2.2% + $0.30 per transaction. You'll need to speak to a rep to get your personalized rate.
To qualify, you need proof of your 501(c)(3) status. And at least 80% of your funds must be from tax-deductible donations.
Stripe is ideal for large global nonprofits that take donations from all over the world. It can process payments in over 135 currencies.
Stripe is best known for its advanced API tools to create a completely customized online checkout experience. You can create a professional donation form. However, it's best if you have a developer on your team to make full use of them.
Start Accepting Payments Fast
- Interchange Plus Pricing
- No Monthly Fees
- No Contracts
5. Dharma Merchant Services
Best for: Nonprofits that receive at least $10,000 per month in donations.
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Dharma has a long history of supporting nonprofits. They donate a portion of their profits to charities each year, so even your processing fees are doing good.
Furthermore, Dharma offers nonprofits a discounted rate (off of their already low rates!). Dharma will also make sure your account is properly classified, so you're getting the lowest interchange rates possible.
The nonprofit rates are:[4]
- In-person: Interchange+ 0.10% + $0.08
- Online: Interchange + 0.10% +$0.11
- In-person Amex: Interchange+ 0.20% + $0.08
- Online Amex: Interchange+ 0.20% + $0.11
- $20 monthly fee
However, there are some extra costs. If you take online donations and need a gateway, there's an extra cost of $10/mo + $0.05/transaction.
The $20 monthly fee gets you access to mobile processing, a virtual terminal, easy payment links, and online reporting tools. But it could be tough for smaller nonprofits if you don't have steady donations.
Online Payment Processing
- Accept payments worldwide and automate payouts and financial workflows seamlessly
- Grow with confidence: Whether you're running an e-commerce store, subscription service, or marketplace, Stripe adapts to any business model
- Trusted by millions: From startups to Fortune 500 companies, Stripe powers businesses of every size
- Predictable costs: Transparent flat-rate pricing with no setup fees or monthly charges – pay only for what you use
- Enable more sales: Support credit cards, mobile wallets, and 135+ international payment methods
- Developer-friendly tools: Integrate payments quickly with Stripe's intuitive APIs and documentation
6. GoFundMe Charity
Best for: Crowdfunding donations; if you don't want to sign up with a processor.
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GoFundMe is known for personal crowdfunding, but charities can also set up a page on the platform.
The processing fee for charities is 2.2% + $0.30. There is no fee to use the platform.[5]
You may like this option if you just want to set up a simple donation page through GoFundMe. You don't need to sign up with a credit card processor. The platform will deduct the processing fees.
You can create a customized fundraising page with your logo, sell event tickets, manage donor data, and receive year-round donations.
Plus, GoFundMe is a trusted platform to spotlight your campaign. But the downside is that you don't get flexible payment options or your own custom website.
Chase Payment Solutions℠
- Limited time offer: Get $100 off the Chase Point of Sale (POS)℠ Terminal. Fill out the form and ask a Payments Advisor how to claim.
- Fast funding at no additional cost. Get deposits as soon as same day.
- Get fair and transparent pricing with no hidden fees. 2.6% rate +10¢ per tap, dip and swiped transaction. 2.90% + 25¢ per eCommerce transaction and monthly fee starting at $9.95. 3.5% rate +10¢ per keyed transaction.
- Get paid fast and manage your business from anywhere with the Chase Point of Sale system. Use our mobile app, reader and terminal to take payments via tap, dip and swipe.
- Process payments with Chase Payment Solutions, the #1 merchant acquirer in the U.S.
- Tap to Pay on iPhone offers you the ability to accept contactless cards, Apple Pay and other digital wallets on your iPhone – no additional hardware required.
- Chase Customer Insights is a complimentary business intelligence platform that offers simple, actionable analytics and reports to help you make better business decisions and reach more customers.
How We Chose the Best Credit Card Processors for Nonprofits
Nonprofits have unique needs compared to other businesses. To find the best providers, we looked at these factors:
- Discount pricing for nonprofits (exception is Square)
- Reputation for working with nonprofits
- Transparency
- No contract
- Setup and ease of use
- Can accept credit cards in many ways
- Good, well-rounded features
- PCI compliance
We found different providers ideal for different types of charities (small, large, on-site fundraisers, online, global). No matter the scale of your operation, you'll find someone that fits your needs.
Can Nonprofits Get Free Credit Card Processing?
Unfortunately, credit card processors cannot offer free processing, even to nonprofits. The best they can do is offer a discounted rate.
However, there is a way for you to avoid processing fees. You can pass it on to your donors. Charities are one special case where donors are more likely to help cover your processing fees.
A lot of providers (like Stax) offer an option at checkout to add a surcharge to the donation amount. It can be stated clearly that this charge is to help cover processing costs.
Read this guide on credit card convenience fees to learn more about surcharges.
Bottom Line
Credit card processing fees are unavoidable, but there are providers who can give you a discount.
If you're a small charity, look into PayPal because it's easy to set up and there's no monthly fee. But if you're a slightly larger organization, check out one of the other full-service providers (like Dharma or National).
References
- ^ "Online Payment Experiences of Merchants": 2018, PayPal.
- ^ Square Pricing, Retrieved 10/22/21
- ^ National Processing Pricing, Retrieved 10/22/21
- ^ Dharma Merchant Services, Nonprofit Rates, Retrieved 10/20/21
- ^ GoFundMe Pricing and Fees, Retrieved 10/22/21
Anna G is a research director at CreditDonkey, a credit card processing comparison and reviews website. Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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