When it comes to accepting online donations, having a reliable and secure payment processing solution is crucial for nonprofits.
A payment processor acts as the intermediary, facilitating the transfer of funds from donors' accounts into your organization's account. With the increasing shift towards digital transactions, selecting a suitable payment processor has become a critical decision for nonprofit organizations.
In this article, we've curated a list of the top 8 payment processing options tailored specifically to nonprofits' unique needs.
Our Top Picks of Payment Software
What is a Payment Processing Software?
A payment processor is a solution that facilitates online payments between nonprofits and their donors with debit cards, credit cards, or digital wallets. It serves as a mediator between merchants, donors, and the financial institutions involved.
Once a donor initiates online payments, the transaction details are encrypted and shared with the processor. The payment processor software sends these details to the donor's bank and requests authorization for the transaction.
After the bank ensures the donors have enough funds, it approves the transaction. The payment processor then transfers the funds from the donor account to the nonprofit's account.
Top 8 Payment Processing Software for Nonprofits
1. Zeffy: Best Free Payment Processing Software for Nonprofits
Capterra: 4.8
G2: 4.9
Zeffy is a game-changer for nonprofits seeking to streamline their payment processing and fundraising efforts. What sets Zeffy apart is its commitment to providing a 100% free platform, eliminating all monthly fees and even transaction charges. This means that every penny donated through Zeffy goes directly to your cause.
Zeffy accepts debit and credit card online payments from around the world, as well as ACH, bank transfers, Apple Pay, Google Pay, and checks. With its 100% free model and dedication to nonprofit success, Zeffy is the ideal partner for organizations looking to make every donation count.
In addition to payment processing, Zeffy offers a range of features designed to simplify fundraising for nonprofits, such as:
- Customizable, branded donation forms that can be easily shared with your audience
- Automatic tax receipt generation and distribution to your supporters
- 100% free POS for nonprofits (no card reader needed) for in-person donations
- Tools for managing ticketing, memberships, and recurring donations
The ability to create an online store to generate additional revenue for your nonprofit
Things to Keep in Mind:
Pricing:
100% free
What Do the Users Say?
We are a small not-for-profit start-up organization that was having problems raising money online. We were limited in how donors could send us money and the processing fees were costly. We found Zeffy easy to use and extremely donor-friendly. Zeffy delivers a tax-ready receipt to donors immediately. The software has allowed us to collect donations for multiple fundraising campaigns. - Ronald W
FAQs
2. Stripe: Best for Integrations and Customizations
Capterra: 4.6
G2: 4.3
Stripe is a well-known and widely recognizable payment processing software that enables you to accept payments through an e-commerce platform, website, or from most sources on the Internet.
The solution intermediates your donor's payment methods and your organization's bank account. You can integrate Stripe with whatever platform you're using with no code and create your own custom point of sale. It accepts payment in 135 currencies and offers a variety of extensions, including prospect management, analytics, and tax calculation tools.
By using Zeffy, nonprofits can access Stripe's payment processing capabilities without incurring any of the usual fees associated with the platform, as Zeffy covers even the transaction costs. This means you can enjoy the benefits of Stripe's reliability and security while keeping all of your donated funds.
Things to Keep in Mind:
Pricing:
It offers eligible nonprofits processing 80% or more donations on the platform a discounted fee of 2.2% + $0.30 per transaction, as opposed to 2.9% + $0.30 per transaction for businesses.
What Do the Users Say?
I like that Stripe integrates with many, many platforms. Whether it's databases or crowdfunding sites, Stripe is accepted in a lot of places, which has been so helpful for us. I also think it has really accurate reporting and is heavily detail-oriented. - Rachel D.
FAQs
3. Payline Data: Best for Multiplatform Payment Needs
Capterra: 5
G2: 4.6
Payline Data is another online payment software for nonprofits, especially those in the education sector. It has seamless integrations, mobile payment capabilities, and various POS solutions.
The POS system options are tailored to your specific operational needs. Organizations can customize their payment processing setup to meet their unique requirements with choices such as Oracle MICROS, Clover, and NCR Aloha Cloud.
Its Virtual Terminal functionality optimizes cash flow by accepting online payments and transferring the funds the next day. The Virtual Terminal and dashboard offer a central location to manage several payment-related tasks, from viewing reports to storing profiles and sending invoices.
Things to Keep in Mind:
Pricing:
For nonprofits, discounted rates start at Interchange + 0.10%.
What Do the Users Say?
Payline helps our accounting team balance financial reports by managing transactions such as payments and refunds. It's a straightforward method to manage all of our purchases and sales within a single app. - Arindam B.
FAQs
4. Helcim: Best for Online Credit Card Payments
Capterra: 4.2
G2: 4.2
Helcim is the best credit card payment processor for accepting donations offline and online. Its POS hardware allows you to accept funds in person, while its hosted payments page and gateway options allow you to accept transactions online.
It also accepts donations from ACH, Google Pay, and Apple Pay. The platform provides additional features, including generating a QR code, building your hosted nonprofit online store, and creating and sharing invoices.
Things to Keep in Mind:
Pricing:
Helcim provides reasonable credit card processing rates to some qualified charities. These are:
- Visa Canada - 0.98% to 2.00%
- MC Canada - 0.92% to 1.80%
- Visa US - 0.65% + $0.15 to 1.35% + $0.05
- MC US - 1.45% + $0.15 to 2.00% +$0.10
What Do the Users Say?
Helcim helped our not-for-profit with efficiencies. We had no issues at all with our service. Helcim helped our not-for-profit with efficiencies. - James V
FAQs
5. Square: Best for Point-of-Sale Transactions
Capterra: 4.7
G2: 4.6
Square is best known for its POS solution, which enables you to accept payments in person with ease. You can download the Square POS app on your phone or choose from a range of robust hardware. It even comes with a tap to pay solution that helps accept payments through contactless cards and digital wallets on iPhone and Android during events.
Besides offering payment services, Square comes with basic CRM (customer relationship management) tools that help to segment your supporters into groups, send targeted emails, and receive feedback through digital receipts.
Things to Keep in Mind:
Pricing:
Processing fee is 2.6% + $0.10 per transaction for nonprofits
What Do the Users Say?
The payments always go through, and Square Payments has a very clean-looking interface. It has good functionality and is mostly reliable. - Anonymous
FAQs
6. PayPal: Payment Processing Software for Nonprofits
Capterra: 4.7
G2: 4.4
For nonprofits looking for a reliable and easily accessible payment processor to accept donations, PayPal is a great choice. It's designed to be easy for first-time users.
PayPal uses its merchant account to process transactions for nonprofits. It enables you to collect donations online and in person using a mobile card reader, chip and swipe reader, or chip and tap reader.
PayPal even allows you to add and customize a donate button on your website so that your donors can make contributions via credit cards, debit cards, and PayPal payments without creating an account on the platform.
Things to Keep in Mind:
Pricing:
For registered 501(c)(3) organizations, the price is 1.99% + $0.49 per transaction.
What Do The Users Say?
The ease of integrating with any website, no matter what platform it is designed on. You can quickly parameterize all the elements related to this payment method. It is used at the same level as other payment methods and this gives confidence. It is a secure platform, it does not generate errors, on the user's side or on the programmer's or administrator's side. - Ivan B.
FAQs
7. Adyen: Best Omnichannel Payment Processing System
Capterra: 4.8
G2: 3.3
Adyen is an omnichannel payment processor, meaning it can manage transactions on smartphones, in-person, or any other means on a single platform. Its payment services comprise a payment gateway for online payments, point-of-sale systems for in-person transactions, and integration for in-app or mobile payments.
The platform offers insights into your transaction history. You can check balances, reconcile payments, and more for each payment service linked to the merchant account.
Things to Keep in Mind:
Pricing:
A fixed processing fee ($0.13 for the US) + a fee determined by the payment method
What Do the Users Say?
Adyen has helped us to offer our products to clients in different markets with the payment method of their choice and to manage our transaction from just one platform in a very easy and organized way. - Anonymous
FAQs
8. HubSpot Payments: Best for Versatile Payment Collection
Capterra: 4.5
G2: 4.4
HubSpot Payments is a comprehensive payment processor integrated directly into the HubSpot platform. It allows you to collect one-time or recurring payments through payment links, invoices, forms, and quotes.
When someone makes a payment, you will receive a notification in your email. The platform, integrated with automation and reporting tools, will automatically generate transaction records, making it simple to manage and track your payment activity.
The solution also integrates with your existing payment gateway.
Things to Keep in Mind:
Pricing:
HubSpot offers a 40% discount to eligible nonprofits. HubSpot Payments has credit card processing fees of 2.9% for credit card transactions and 0.5% for ACH payments (capped at $10).
What Do the Users Say?
There are so many useful tools, and they are all incredibly intuitive. Using automated workflows, our organization has significantly improved engagement and nurturing while curbing labor. HubSpot's customer support is also amazingly responsive and helpful. - Pete G
FAQs
What to Consider When Choosing a Payment Processing Software
Here are a few factors to consider when looking for a payment processing solution:
1. Pricing Structure
In general, a payment processing service usually offers flat-rate pricing and interchange-plus pricing. The former charges merchants a single fixed rate irrespective of the card used, while the second varies cost based on the card.
Some payment processors even offer subscription models, eliminating per-transaction fees in exchange for a monthly membership charge. For nonprofits that process high-volume transactions, membership plans offer a cost-effective way to lower costs.
Check the fine print for any extra fees added to your pricing structure. Some providers charge statement fees, gateway fees, setup fees, and batch fees in addition to transactions or subscriptions. Be careful when reviewing the pricing structure to identify any hidden costs.
When considering pricing structures, it's important to keep in mind that some platforms, like Zeffy, offer completely free payment processing for nonprofits. By choosing a fee-free solution, you can ensure that 100% of the donated funds go directly towards your cause.
2. Payment Methods Supported
Consider the payment methods you want to offer your donors and ensure that the payment processor software supports them.
Popular methods are credit and debit cards, which almost all payment software solutions support. You may also want to accept payments via PayPal, Google Pay, Apple Pay, e-check, and digital wallets. Ensure that the processor supports global payments in currencies you accept.
3. Integration
You want to choose payment processing services that integrate seamlessly with nonprofit's website.
Zeffy enhances nonprofit fundraising efforts with its embedded donation forms, seamlessly integrating into your website. These customizable forms provide a user-friendly experience, ensuring donors can contribute easily without navigating away from your site, thus keeping engagement high and consistent.
4. Security
When collecting online donations, it's your responsibility to protect and secure the donor's sensitive payment data and your confidential organization information. Look for payment processors that prioritize security measures such as fraud protection and chargeback protection.
The payment processor should also be PIC-compliant, which is a set of standards that all organizations that process credit card payments have to follow.
Zeffy understands the importance of security in payment processing and ensures that your donors' sensitive information is safe and secure. By partnering with Stripe, a leading payment processor known for its robust security measures, Zeffy ensures that all transactions are protected and compliant with industry standards.
5. Good Customer Service
Good customer service in payment processing is crucial, especially for nonprofits that handle numerous transactions under various conditions.
Opt for services that provide dedicated support for nonprofits, understanding the nuances and specifics of nonprofit operations, ensuring any issues are swiftly and effectively resolved.
The Bottom Line: Which is the Best Payment Processing Software?
While all these payment processing solutions are solid choices to let donors pay securely and conveniently, remember to choose what's right for your nonprofit.
Explore your options and decide on a simple, powerful, cost-effective payment solution that offers the services you need.
When it comes to selecting a payment processing platform for your nonprofit, Zeffy stands out as an exceptional choice. With its comprehensive set of features, including online and offline transaction support, multiple payment methods, automated tax receipts, and 100% free processing, Zeffy empowers nonprofits to maximize their fundraising potential.
Sign up for Zeffy and get access to 100% free donation platform with a user-friendly payment processing solution.
