credit card processing for non profits by quantummike


non profits should be offering credit cards as payment or fundraising. And they should do regular price revues.

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									Credit Card Processing for Non Profits
Rate revues for non profit agencies

We recently helped a Non Profit client who had not looked at their credit card processing rate
since 1999. As it has now been over 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! Quantum Merchant Services 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

There are a couple 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.

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.

Rob Olson

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