Interchange for Charitable Organizations

By Rob Clarke

A significant amount of the fees that we charge to you for processing your Credit Card and Non-PIN Debit Card transactions represents charges that we must pay to the Issuing banks (or that are otherwise charged to us by MasterCard and Visa) under MasterCard and Visa (the “Associations”) rules. This amount, called “Interchange” varies based upon a complex series of interchange levels that may apply to the transaction depending upon a number of factors – such as the type of card presented, specific information contained in the transaction, how and when the transaction is processed, your industry, anduntitled (16) other factors.

Charitable and Social Service Organizations are afforded special interchange rates and fees versus a traditional merchant. USB Payment Processing’s Interchange Pass Through pricing plans allow charities to maximize the cash going to the organization, rather than paying unnecessary fees. While untitled (15)nothing is different with regards to corporate cards, the total cost paid by the organization for all consumer credit cards and signature based debit (check cards) is always less than 2%.  This rate applies regardless of the capture method.  Whether the transactions are swiped, keyed, processed through e-commerce, all methods cost the same.  Consumer rates for traditional merchants can range from 2.2% on up to 5% with some non-profit aggregator services (Network for Good, PayPal, etc).

This is for both swiped and keyed in transactions that are settled within 24 hours of the authorization. All in, charitable organizations should expect to pay well less than 2% for consumer credit transactions, while still taking advantage of Durbin Debit check card pricing.

Compare USB’s Charity pricing to PayPal’s NFP rates:

A $100 donation, with PayPal, the organization would pay $2.50. It can also take 3-5 business days to get the funds deposited in their bank account.  With USB, a $100 donation would cost well less than $2.00. With our next day funding program, deposits can be in the bank by the next morning.  In addition, Charitable Organizations are not subject to Visa’s Fixed Acquirer Network Fee (FANF). For a merchant processing less than $200,000 in Visa Card-Not-Present transactions, this can save anywhere from $5.00 to $45.00 or more.

For more information on how Interchange rates affect your organization and to learn more about  Smart Processing in Maryland; please contact a Local. Available. Proven Merchant Services provider.   Call Us Today at (410) 828-4286

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