We are often asked by clients if it is better to process payments for auction items in real time (now) at a fundraising event or (later) after the event, say the next day.  Many small to mid size non profits cannot afford the additional fees charged by auction software providers or don’t want to enter into a new agreement to process payments for their first and possibly only (depending on success) fundraising auction. And so the question becomes, “do we capture credit card information at the event and process it through a virtual terminal the next day or should we find a way to process payment information at the event?”

It is our opinion that the preference should always be to process credit card information as soon as possible, before a bidder leaves your event with an auction item.  This ensures that credit card information provided is valid and accurate and that payment for the auctioned item will definitely be received by your organization.  It also relieves your organization from the burden of having to capture, store and securely transport credit card numbers and then dispose of this information after it has been used to process transactions. Additionally, it saves you from the uncomfortable task of contacting bidders if their credit card payment fails to process for whatever reason.

There are several methods that enable the real time processing of credit card information at an event, the most common involves the swiping of credit cards through card readers that are connected to a payment gateway via the Internet. This method is fast, secure and ensures that all transactions receive a confirmation of payment in real time. It also ensures that all credit card information is legitimate and not fraudulent.

Acceptiva clients use the Acceptiva virtual terminal at events to process transactions in real time through a card reader tethered to a PC. This solution enables all transactions to process through their existing merchant account, be reported in their existing Acceptiva reporting and is very low cost as the virtual terminal is included free of charge with the Acceptiva service, and card readers are relatively inexpensive at approximately $60 each.

 

 

When it comes to fundraising, there are two basic types of people in the world:

There are those who see the world as a place of great scarcity, where a limited amount of money and resources are fought over, where one person competes against another for a dollar from a donor or an hour from a volunteer, and where, when one organization receives a donation, it lessens the pool of donations available to all other charities, and…

There are those who see the world as a place of great abundance, where there are far more resources available than could possibly ever be used, where there exists much more money, time, and talent than all of the non-profits in the world could possible use, and where, when one organization receives a donation, it does not at all lessen the total pool of donations available to other charities…

What type of fundraiser are you? Do you see the world as a place of scarcity, or as a place of abundance?

When I first started fundraising, I saw the world as a place of scarce and limited resources. I saw other organizations as competitors for donors’ time and volunteers’ efforts. But, as I have progressed through my career, I have come to see the world as a place of great abundance, with almost unlimited wealth, time, and talent for the asking.

I came to realize that there were thousands of people who would be willing to give to non-profits, but who didn’t, because no organization had cast a compelling vision for them.

I came to realize that there were thousands of current donors who could give more, but who didn’t, because the organization they supported hadn’t asked for more, or hadn’t developed big enough goals to support even bigger asks.

I came to realize that there were thousands of people with free time on their hands who would enjoy volunteering, but who didn’t, because no organization had given them a job worth doing.

You see… I came to realize that the reason many people didn’t give of their time, talent, or treasure (or didn’t give more than they already are giving) isn’t because they couldn’t afford to, or because they didn’t want to, but because no one had cast a bigger than life vision for them, and asked them to support that vision in a meaningful way.

Fundraising is different when you see the world as a place of abundance, not scarcity.

In a scare world, non-profits don’t hit their fundraising goals because no one has money to give, the economy stinks, or other organizations are “stealing” their donors. In an abundant world, non-profits don’t hit their fundraising goals because they aren’t thinking big enough, aren’t communicating with enough people, aren’t making big enough asks…

In a scare world, organizations don’t have enough volunteers because people are too busy, no one wants to get their hands dirty, and people like other organizations more than yours. In an abundant world, organizations don’t have enough volunteers because they aren’t giving people enough responsibility, aren’t getting them invested enough in their mission, aren’t saying thank you for their work.

Seeing the world as a place of abundance changes everything.  How does your non-profit see the world?  How do you see the world?

——-
Joe Garecht is the creator of The Fundraising Authority, a free source of fundraising advice and tutorials for non-profits of all sizes.

Categories Fundraising
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Many non profits, especially those just starting out, ask this question.  There are two main ways to accept credit and debit card transactions online.  One is through your own merchant account and the other is through an aggregatorAn aggregator uses their merchant account to process your transactions, and passes the funds onto to you at some later date. The differences are stark and whether you choose one over the other depends on whether you want control over your funds, want to control the relationship between you and your donor and want to control the relationship between you and the payment card companies.

With your own merchant account all funds are deposited into your own bank the next business day without delay or intervention. The merchant account provider bills you for fees and charges at the end of each month. Funds processed through an aggregator usually get deposited based on either a schedule, i.e., every 7-30 days or depending on the total dollar balance in your account, i.e., all balances over $100. Funds are deposited minus the aggregator’s fees and charges which are debited before you receive your funds.

With your own merchant account donors will see the name of your organization on their credit or debit card statement and they will never be contacted by a third party (aggregator) with questions regarding a donation.  Whereas, because an aggregator is ultimately legally responsible to the credit card companies for all transactions processed through their merchant account on your behalf, they may need to contact your donors for questions regarding large donations or processing issues.

With your own merchant account you have an agreement with the credit card companies, VISA, MasterCard, Discover etc., that governs the terms of your processing fees and service and so you are not at the mercy of an aggregator’s  change in terms or pricing or their decision to withhold your funds due to the size or regularity of donations.

So is there any advantage to using an aggregator?  Sure, assuming you do not mind losing the benefits above, an aggregator can sometimes provide a quicker way to accepting online transactions.  At Acceptiva we have found that aggregator services are used by our clients when they are small and unsure of the demand for online donations.  But once they see a significant volume of transactions they quickly want to establish a merchant account to ensure that they can control their receipt of funds and their relationship with donors as soon possible.

Yes, it will.  An online giving option ensures that donors have a quick, secure and convenient way to contribute to your organization or pay for registrations for fundraising events etc.  In this age of ‘always on’ and ‘instant access’, the majority of donors, especially those in the younger demographics, will want an online option to respond to a request for donations.  After all, it is very likely that one of the main ways that you are now communicating with donors is online via email newsletters, social media or your website. And so the ability to respond to you using the same technology just makes sense.

Online giving and ecommerce in general are areas that are growing year over year and will continue to grow as technology is integrated into more devices and the population becomes more comfortable with pretty much everything being available online. Here at Acceptiva we routinely hear clients rave about the growth in the use of their online donation, registration, giving and tuition payment pages etc, and we tell them that there really is no magic here.  A secure, clean, well laid out donation page with minimal distractions can do great things, and provide donors with a simple and convenient way to say ‘yes’ to your request for contributions or make signing up for an event that much easier. And after all, who doesn’t like things to be easy, simple and convenient?

What is a Virtual Terminal?

Before the advent of the Internet, payment processing was done primarily through physical terminals or by imprinting card on slips of paper.  The terminals were (and still are) little boxes that you either swiped a card through or that you entered the card number on via a number pad.  Of course terminals still exist and play a very large part in payment card processing the world over.  You see them every day at grocery stores and retail outlets nationwide.  You may even have one in your non-profit organization’s office. They usually cost a few hundred dollars and transmit payment card information in real time or via a batch at a later time using telephone lines. They are probably not going away anytime soon.

A virtual terminal on the other hand allows you to enter payment card information via a computer screen.  The advantages of a virtual terminal include that all transactions are processed in real time so that you know immediately if a transaction is successful or if it has failed.  This is especially important when a donor is receiving something of value for their donation, i.e., an auction item.  Virtual terminals also tend to cost less than physical terminals and as a virtual terminal is computer based, the virtual terminal page may allow you to capture more donor information that a physical terminal will allow.  A good virtual terminal allows you to add as many customized fields to the virtual terminal screen as needed so that you can capture as much donor information as you would like and report the transactions processed via the virtual terminal, in your regular transaction processing reporting.

The Acceptiva service includes a free customizable virtual terminal. See www.acceptiva.com for details.