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Many credit card processors offer discounts and unique features for nonprofits. Here’s how to maximize your merchant services toolset, including implementing free credit card processing.
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
WRITTEN & RESEARCHED BY
Davina WardDavina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
Expert Contributor
Last updated onUpdated
Shannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
REVIEWED BY
Shannon VissersShannon has been writing for Merchant Maverick about small business software and financing since 2015. She started writing professionally about business topics in 2005. Shannon has been featured in the Washington Post, Reader's Digest, US News, MSN, Yahoo Finance, Business Insider, and other publications. She has a bachelor's degree in English from San Diego State University and currently resides in San Diego, California.
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Our content reflects the editorial opinions of our experts. While our site makes money through referral partnerships, we only partner with companies that meet our standards for quality, as outlined in our independent rating and scoring system.
Finding the best credit card processing for nonprofits is crucial to controlling your nonprofit organization’s costs.
A great credit card processor can not only help your nonprofit save money when taking in-person donations and accepting online donations — many also offer nonprofit features like donor management and hosted donation pages. We’ll be highlighting these processors, and then we’ll explore how free credit card processing for nonprofits can work.
Yes, nonprofits have to pay credit card processing fees unless they pass those costs on to their donors with surcharging or convenience fees. Many payment processors offer discounted rates to nonprofit organizations, however.
The Best Nonprofit Credit Card Processing Providers
Many top nonprofit credit card processing providers offer discounted processing rates for nonprofits. You’ll also want to consider providers that offer virtual terminals, ACH/echeck processing, eCommerce integrations, mobile point of sale, and other tools that help you take donations and communicate with donors.
Discounted interchange-plus pricing for qualified nonprofits
No long-term contracts or early termination fees
Excellent pricing transparency and customer support
Cons
No support for high-risk users
Pricey card reader
Not cost-effective for low-volume organizations
Why We Chose Helcim For Best Overall
We chose Helcim as the best overall nonprofit credit card processor because it gives modern nonprofits the tools they need to conduct fundraisers and accept payments online, in-person, and over the phone, all while keeping your costs as low as possible.
While Helcim's mobile card reader isn't cheap, you'll get a virtual terminal, recurring billing, CRM, and payment portal pages for no cost whatsoever. A specialized donation platform might charge $100/month for these features.
Helcim Pricing
$0/month
Interchange + 0.30% + $0.08 to interchange + 0.10% + $0.05 per standard in-person transaction, with fees decreasing with processing volume
Online transactions start at interchange + 0.50% + $0.25 per transaction, with fees decreasing with processing volume
Nonprofits get lower interchange fees than standard users
Helcim Features
Helcim’s nonprofit-friendly features include the following:
Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.
Pros
Predictable flat-rate pricing with no monthly fees
Impressive feature set
Affordable card reader
Cons
No discount rate for entities taking in less than $250K annually
Account stability issues
Does not support most high-risk entities
Why We Chose Square For Best Free Features
Square only gives nonprofits a discounted rate if they take in $250K+/year in donations. Nonetheless, the sheer number of free features Square offers -- payment processing, business management, analytics, reporting, donor management tools, and more -- led to us including Square in this article.
Add in its numerous integrations with other software platforms, and the appeal of Square for nonprofits becomes obvious.
Square Pricing
$0/month
2.6% + $0.10 per in-person transaction, 2.9% + $0.30 per online transaction
Nonprofits taking in $250K+/year in donations may get a discounted rate; otherwise, nonprofits pay the standard rate
Like all third-party processors, Square has no long-term contracts or early termination fees.
When To Use Square
You want to take advantage of Square’s package of free nonprofit-friendly features
Your nonprofit takes in over $250K/year in donations and thus qualifies for discounted pricing (smaller nonprofits can also benefit from Square, though)
Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.
Pros
Low flat-rate pricing
Low-cost ACH/eCheck processing
Month-to-month billing offered
Cons
Long-term contracts are required for a free terminal
Early termination fee charged in some circumstances
Few details provided regarding custom pricing for those processing over $30K/month
Why We Chose National Processing For Low-Cost ACH/eCheck Processing
National Processing's cheap ACH/eCheck processing package is well-suited to processing recurring donations, making the company a natural choice for this article. National Processing also offers some of the lowest flat rates around for payment processing, along with a solid feature set and integration list.
While the company no longer advertises discounted nonprofit rates, organizations processing over $30K/month can negotiate a custom pricing deal. If this is you, ask the company about getting interchange-plus pricing with discounted nonprofit rates.
National Processing Pricing
$9.95/month ($15/month more for ACH processing)
Nonprofit rates are interchange + 0.12% + $0.06 per in-person and online transaction
ACH/eCheck rates are 0-1.5% + $0.48/transaction (varies by transaction size)
National Processing Features
Notable features from National Processing include:
ACH/eCheck processing
Virtual terminal
Credit card terminals
POS systems (both in-house and third-party)
Mobile processing with Clover and SwipeSimple
API integration
Many eCommerce integrations
Proprietary donation tracking software
Nonprofit-focused analytics
Contract Requirements/Warnings
If you buy your POS equipment outright or don’t need such equipment, National Processing offers month-to-month contracts with no early termination fees. However, if you opt for “free” POS equipment, you’ll likely have to sign a three-year contract, though you should be exempt from any ETFs if you promptly return the “free” equipment.
When To Use National Processing
You want a processor that offers a great ACH/eCheck package for taking recurring donations
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Pros
High-risk specialist
Free credit card terminal
Excellent customer support
Cons
Non-transparent pricing with no nonprofit discount
An early termination fee may apply
The company website could be more informative
Why We Chose PaymentCloud For Nonprofits Considered High-Risk
PaymentCloud specializes in credit card processing for high-risk businesses, and nonprofits often get classified as such. As PaymentCloud is one of the most reputable and well-featured high-risk specialists around, we included it on this list.
The company pitches itself as a nonprofit solution, offering payment processing, an integrated gateway, a virtual terminal, a shopping cart integration, and ACH/eCheck processing. We just wish PaymentCloud offered discounted nonprofit rates or disclosed pricing details on its website.
PaymentCloud Pricing
Quote-based pricing — tiered and interchange-plus plans are available (get interchange-plus pricing if possible)
No further pricing details are provided, but no nonprofit discount is offered
PaymentCloud Features
Features offered by PaymentCloud include:
Virtual terminal
Free credit card terminal
ACH/eCheck processing
Integrated shopping cart software
Mobile POS integrations
Multiple payment gateways
QR code payments
Recurring billing
Your own merchant account
While the credit card terminal is free, you’ll have to ship it back to the company immediately if you close your account. Otherwise, you’ll be charged for the full cost of the machine.
Contract Requirements/Warnings
Your merchant agreement will depend on whether or not your nonprofit is classified as high-risk. Low-risk merchant accounts get month-to-month agreements with no early termination fees, while high-risk accounts may have to sign a two-year contract and an ETF. However, high-risk nonprofits may still be able to get the ETF waived.
When To Use PaymentCloud
Your nonprofit is considered high-risk, and you want the best processing deal possible
Flat-rate pricing with discounted rates for qualified nonprofits
Excellent developer tools
Advanced reporting, tax, and bookkeeping tools
Cons
No discount if your nonprofit raises less than 80% of its funds via donations
Account stability issues
You may need developer expertise on your team to get the most out of Stripe
Why We Chose Stripe For Advanced Customization
We chose Stripe for this list for its unmatched customizability for nonprofits needing an advanced processing solution. Stripe lets your nonprofit create a custom website experience, accept payments in any currency, and generate custom reports. Stripe is also one of the best processors for recurring billing.
Organizations that use Stripe include Unicef, Oxfam, and NPR, highlighting the usefulness of Stripe for nonprofits.
Stripe Pricing
$0/month
2.2% + $0.30 online transaction fee for qualified nonprofits, 2.7% + $0.05 fee for in-person transactions
Your organization must raise at least 80% of its funds through donations to qualify for the discounted rate
Stripe Features
Stripe is best known for its strong developer support and excellent developer tools. Other features include:
International support
Recurring billing
ACH transactions
Numerous integrations
Hosted payment pages (Stripe Checkout)
Customizable donation forms
Manage taxes, reporting, and bookkeeping
Payment links
Contract Requirements/Warnings
Stripe offers true month-to-month billing with no early termination fees.
When To Use Stripe
You want a nonprofit processor offering discounted rates and some of the most advanced developer tools available from a merchant services provider
Discounted interchange-plus pricing for nonprofits
Good customer support
Many nonprofit-friendly features
Cons
US-based organizations only
No pricing details given for card readers
$14.99 monthly fee
Why We Chose Host Merchant Services For Great Customer Service
We picked Host Merchant Services for this list because it combines transparent nonprofit-discounted pricing with solid features, excellent customer support, and a great reputation in the industry.
Additionally, you won't have to sign a long-term contract, and there are no early termination fees if you jump ship. While the company doesn't publicly disclose pricing details for its credit card terminals and card readers, it's not alone in this regard.
Host Merchant Services Pricing
$14.99/month
1.35% + $0.05 per transaction for nonprofits
Offers discounted nonprofit pricing through its HMS Gives program
Host Merchant Services Features
Host Merchant Services provides several features that nonprofit organizations can make use of, including:
Virtual terminal
Web hosting and a basic website
Credit card terminals
Mobile processing and card readers
In-house Bonsai POS system
Shopping cart integrations
eCheck processing
Your own merchant account
Contract Requirements/Warnings
Host Merchant Services offers month-to-month arrangements with no long-term contracts or early termination fees.
When To Use Host Merchant Services
You want a nonprofit-friendly payment processor with discounts and the most helpful customer support around
Month-to-month billing + discounted interchange-plus pricing for qualified nonprofits
Virtual terminal, recurring billing, and donation buttons
Excellent customer support
Cons
Monthly fee
Pricey mobile card reader
No support for high-risk organizations
Why We Chose Dharma Merchant Services For Nonprofits Processing Over $10K/month
We chose Dharma Merchant Services for this list because its transparent, nonprofit-discounted interchange-plus pricing, tools for accepting donations both online and in-person, and a wide array of eCommerce and POS integrations make it ideal for nonprofits processing over $10,000/month.
With Dharma, the benefits for larger nonprofits more than outweigh the monthly fees charged for the core service and some of the add-on features.
Dharma Pricing
$12/month for nonprofits
Nonprofit rates are interchange + 0.10% + $0.08 per in-person transaction, interchange + 0.10% + $0.11 per online transaction
Dharma Features
Dharma’s features for registered charities include:
Donation buttons
A virtual terminal
Recurring billing and invoicing
eCommerce integrations (for an additional $10/month)
Hosted donation pages
Customer database
ACH processing (for a monthly fee)
Payment links
Mobile card reader ($149)
Your own merchant account
Contract Requirements/Warnings
Dharma offers month-to-month billing with no ETFs, but it does charge a $49 account closure fee when you permanently close your account. This fee won’t be charged if your organization only operates seasonally, however.
When To Use Dharma Merchant Services
You want a payment processing package specifically tailored to the needs of larger nonprofits
Flat-rate pricing with discounted rates for nonprofits
Extensive integrations
Good developer tools
Cons
Account stability issues
Inconsistent customer support
Pricing is high if you take lots of very small online donations
Why We Chose PayPal For Accepting Multiple Payment Types
It's important to cater to the preferences of as many potential donors as possible, and PayPal accepts payments in just about every form imaginable, from QR payments to cryptocurrency payments to everything in between.
PayPal offers discounted nonprofit rates for online transactions, but even this rate includes a $0.49 fixed fee, which is steep if you accept lots of small online donations (though in-person donations only incur a $0.09 fixed fee). However, PayPal's combination of discounted rates and nonprofit-friendly tools (both in-house and third-party) still equals a compelling package for nonprofits.
PayPal Pricing
$0-$30/month (depending on the online checkout flow you use)
1.99% + $0.49 online transaction fee for approved nonprofits, 2.20% + $0.09 per in-person transaction
2.89% + $0.49 online transaction fee for donations if your organization does not yet have nonprofit status
PayPal Features
Our PayPal nonprofit guide contains a full nonprofit-specific feature rundown, but here’s a summary of what you’ll get:
Donation buttons
QR codes
Inexpensive mobile card reader with a PIN pad
Virtual terminal (though you have to pay a monthly fee for it)
Donation links (PayPal.me)
Hosted donation pages
Invoicing
Countless shopping carts, POS, CRM, and accounting integrations
Detailed reporting
Contract Requirements/Warnings
All PayPal merchant agreements are month-to-month — no long-term contracts and no ETFs.
When To Use PayPal
You want a payments package for your nonprofit that includes extensive support for a broad range of payment types
Offers interchange-plus and membership pricing plans
Month-to-month billing
Next-day funding included with each account
Cons
Clover software subscription fees not disclosed
Very little merchant feedback available
Monthly fee
Why We Chose Clearly Payments For Nonprofits With High Processing Volumes
We chose Clearly Payments for this list because despite being relatively new to the processing industry, its impressive range of features and extensive pricing disclosures are good indicators of its quality and trustworthiness. The company's pricing scheme makes it a great fit for organizations with higher processing volumes.
Clearly advertises itself as a solution for nonprofits, though it does not specify whether or not nonprofits get a discounted processing rate. If you're considering using Clearly Payments, ask a company rep if your nonprofit can get processing at a discount.
Clearly Payments Pricing
$21/month with interchange-plus pricing, $99-189+/month with membership pricing (only available to Canadian entities)
Pricing for the interchange-plus plan starts at interchange + 0.28% + $0.08 per in-person transaction and interchange + 0.48% + $0.23 per online transaction, with substantial discounts available as your processing volume increases
Pricing for the membership plans start at interchange + $0.08 per transaction, with lower rates available in plans with higher monthly fees
Clearly Payments Features
Features offered by Clearly Payments include:
Next-day funding
Mobile processing
Countertop terminals and POS systems
Virtual terminal
Online invoicing
Analytics and reporting
Contract Requirements/Warnings
Clearly Payments offers month-to-month billing with no long-term contracts and no early termination fees.
When To Use Clearly Payments
Your nonprofit has a high processing volume, and you want to take advantage of the company’s significant volume discounts
Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.
Weighted Rating Breakdown
Fees & Rates 35%
Contract 20%
Products & Services 15%
Sales & Advertising Transparency 15%
Customer Service 10%
User Reviews 5%
When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.
We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.
For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:
5 Tools & Features To Look For In Nonprofit Credit Card Processing
Here are some tools and features nonprofits should look for when selecting a payment processor.
ACH Processing
You’ve probably used ACH for direct deposits and peer-to-peer transactions. ACH payments are the most common way of performing bank-to-bank transfers in the US. They’re low cost compared to credit card transactions, making them excellent for recurring donations.
Reasonable Rates
Comparing payment processor rates can be tricky because not all of them use the same pricing model. Low-volume nonprofits may want to consider processors that offer flat-rate pricing with no monthly fee. Higher-volume nonprofits will generally be better off with interchange-plus pricing.
Stay away from tiered pricing if possible, though high-risk entities may not have a choice.
Nonprofit discounts are always nice, too, of course.
If you’re taking donations online, you want it to be easy for people to give you money. Many payment processors offer nonprofits simple buttons for donation processing that you can drop into the HTML of your website. Others will provide you with tools to build landing pages and websites.
Strong Security Features
Like any business, a nonprofit can fall victim to credit card fraud. While it’s impossible to eliminate the risk of credit card fraud, you’ll want to select a processor with a good reputation for security. Also, you’ll generally want to choose one that takes PCI compliance out of your hands by keeping all credit card information on their server rather than yours.
Mobile Credit Card Readers
If you want to accept donations in-person at fundraising events, dinners, contests, etc, mobile credit card readers, when paired with a mobile POS app, can make accepting donations when on the go simple and easy.
While processors such as Square and PayPal offer their own proprietary devices, traditional merchant account providers typically offer third-party processing apps (and associated readers) such as SwipeSimple and Clover Go.
How To Get Free Credit Card Processing For Nonprofits
Yes, free credit card processing exists for nonprofits. However, this means that you pass your processing costs down to your donors.
A nonprofit is one of the few types of organizations that can get away with asking customers to cover processing costs without incurring resentment. Walmart.com would not enjoy that privilege.
In addition to the actual charge, surcharging means the processing costs are added to the amount afterward, and the payment card user must pay this additional amount.
Convenience Fees
With convenience fees, the net result is the same as with surcharging — the card user pays the processing costs — but you must offer a way for the donor to pay if they don’t want to pay the convenience fee.
Facts Regarding Free Credit Card Processing For Nonprofits
You can eliminate some or all of your processing costs
You may be charged a monthly fee for using the feature
You’ll still be responsible for chargebacks and other incidental fees
You’ll need to inform your donors clearly that they’re paying the costs
You may turn off some potential donors, though this is less of an issue than it is for for-profit businesses
You may be liable if you do not implement this feature correctly — follow the laws and guidelines of both your state and payment processor
Can Nonprofits Use Venmo?
Nonprofits can use Venmo to collect donations and even get a discounted rate of 1.9% + $0.10 per transaction. In addition, with Venmo’s Charity Profiles, nonprofits can access additional features to improve their fundraising.
The Bottom Line On Choosing The Best Credit Card Processing For Nonprofits
When you’re choosing from the best credit card processors for your nonprofit, following these steps will help you make the right choice.
Step 1: Know How You Want To Take Donations
Will you be accepting donations online, in-person, or both?
Do you anticipate mainly taking recurring donations, one-time donations, or a mix of both?
Step 2: Know The Additional Features You'll Need
You don’t want to end up with a solution that doesn’t provide what you need, nor do you want to pay for features you don’t need. Consider whether or not you’ll require the following:
A mobile card reader
A virtual terminal
Recurring billing
Invoicing
Donor management tools
Accounting tools
A website builder
Step 3: Consider Your Processing Volume And Average Ticket Size
Organizations processing over $10,000/month will benefit from interchange-plus pricing offered by the likes of Helcim and National Processing. Those processing under that amount will benefit from the flat-rate processing offered by Square, Stripe, and PayPal.
Average ticket size is another important consideration. If you mainly take small donations, the 49-cent fixed fee charged by PayPal for each online transaction will hit you hard. If your average donation is large, however, that fixed fee will be less significant.
Final Tips To Remember
Beware of long-term contracts, especially those that include an early termination fee (ETF). Many processors now offer month-to-month packages or will at least waive your ETFs.
Steer clear of independent sales agents and deal directly with a company when possible.
Get everything in writing!
FAQs: Best Credit Card Processing For Nonprofits
How can a nonprofit accept credit cards?
Nonprofits can use integrated payment processing built into donation software, but they can usually save more money by using a merchant account or a third-party payment processor.
Do nonprofits need to be PCI compliant?
Yes, nonprofits must be PCI compliant if they accept, process, store, or transmit credit card information. There are no PCI compliance exemptions for nonprofit organizations.
How do I ask donors to cover processing fees?
If you want your donors to pay your processing fees, consult your payment processor’s policies and your state’s guidelines on surcharging. You’ll want to communicate clearly to your donors that they are paying the costs.
Alternatively, you can charge convenience fees, which face fewer state-level restrictions.
Davina began writing for small businesses in 2018 and has since gained expertise in the SaaS industry. She earned her Bachelor’s of Arts in English Literature from SUNY Geneseo in 2018.
View Davina Ward's professional experience on LinkedIn.
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Merchant Maverick’s ratings are editorial in nature, and are not aggregated from user reviews. Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. Merchant Maverick’s ratings are not influenced by affiliate partnerships.
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