Collecting Money Using Credit Cards

Geico266

Geico266

Touchdown! Greaser!
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Geico
We want to be able to process 75- 100 hand written credit card transactions for an upcoming charatable fund raising event. Where do I start? Who do I use? Who is the cheapest?
 
Geico266 said:
We want to be able to process 75- 100 hand written credit card transactions for an upcoming charatable fund raising event. Where do I start? Who do I use? Who is the cheapest?
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When you say "hand written", I am assuming you mean you will have to manually enter the transactions. I would download the Square app and go that route. It is user friendly, card readers are free or very inexpensive, and I believe they charge 2-2 1/2%....which is pretty typical. Manual entries are manual entries, a pain in the A$$ and time consuming.
 
We've found the rates square, amazon, paypal etc... are all about the same. No distinction for non profits.
 
I use Square for our Cub Scout Pack. Really simple to use and reasonable fees.
 
I had many, many problems with Square. We've used Square, Amazon, PayPal, Shopify, Stripe and a few others.

The best and easiest option to use is PayPal. Between the card reader - that actually works the first time instead of the garbage that Square uses, and the PayPal Here app - it smokes all challengers.

Square also has additional fees for rewards cards.

The only real competitor is Shopify, but it's really no different than the PayPal system.
 
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Another vote for Square. I've been using it about two months...no issues. Several other instructors I know use it also and are happy with it.
 
Geico266 said:
We want to be able to process 75- 100 hand written credit card transactions for an upcoming charatable fund raising event. Where do I start? Who do I use? Who is the cheapest?
Click to expand...

I say find a business, restaurant, retail outlet that wants to donate to this Charitable cause and use them to process that CC donations... They already have the equipment and accounts set up.
 
I would probably put the ipad to good use and get one of those pucks - the pucks are free basically - the fees around 5%. . . .
 
We used creditcardprocessing.com to conduct transactions for our fundraiser. No contract, low rates. More secure than square readers and a fraction of the transaction cost. PM me for more info.


Sent from my iPad using Tapatalk
 
Jeff Oslick said:
Don't know where you got that info from, but it isn't correct for basic accounts.
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It's all right there for you in the fine print. Also, going with any basic package will cost you more with them. And for a company with the worst rated customer service in their class, it's a bad move all around.

OP the last thing you should know about Square and what you're trying to do is this quote:
"Card-Not-Present Businesses that key-in transactions instead of swiping cards should stay far away from Square. 3.50% plus a $0.15 isn't even close to competitive for card-not-present transactions."

So I'll say it one more time for all the people in the back rows. DON'T USE SQUARE.
 
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I personally like PayPal because the money's immediately available no matter how I run the charge (swipe, hand-keyed, or customer-keyed online). I can spend it, withdraw it, or transfer it to my checking account within seconds after the transaction. Most other processors make you wait a few days while they play the float with your money.

I should mention, however, that I've been processing with PayPal for about 15 years without a chargeback or complaint. I don't know whether or not that has anything to do with the instant availability of funds. Maybe they're more cautious with new accounts. Or maybe not. I really don't know.

I'd also talk to Jesse. He's involved in a card processing business. He'd be the first one I talked to if PayPal ever ****ed me off.

Rich
 
Say we use PayPal, can I create / determine the transaction info that shows up on the users statement? I want the foundation title to show up on their statement so they know it is being donated directly to the charitable foundation.

Thanks one and all for your advice and help!!!
 
Geico266 said:
Say we use PayPal, can I create / determine the transaction info that shows up on the users statement? I want the foundation title to show up on their statement so they know it is being donated directly to the charitable foundation.

Thanks one and all for your advice and help!!!
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I'm pretty sure that the account would have to be created in the organization's name for that to be the case. If it's the same as opening a business account, it's pretty straightforward. They'll probably want a copy of whatever paperwork established the organization, the TIN/EIN, bank account information, and possibly your driver's license to prove that you're a person authorized to do business in the organization's name.

Whatever the account name is on the PayPal account is what shows up on the statement. For sole prop DBAs it can be either the person's name or their DBA. For LLCs, corps, etc. it's the organization's legal name.

As I said, I opened my business account a long time ago, so things may have changed. Back then it was pretty straightforward. I was up and running with them the same day I signed up. Post-9/11 there may be some additional verification required.

https://www.paypal.com/webapps/mpp/merchant

Rich
 
Another vote for square. We use it for all of our retail businesses. Cash deposits within 36 hours.

For a pop up event, all you need is a Smartphone.

And web based reporting and analytics is great and free.
 
Make sure you check out transaction fees when you pick your provider. Some providers charge more than 3% for all transactions. Those fees add up quickly and will lower the bottom line of what you donate to your charity.
 
Archammer said:
I had many, many problems with Square. We've used Square, Amazon, PayPal, Shopify, Stripe and a few others.



The best and easiest option to use is PayPal. Between the card reader - that actually works the first time instead of the garbage that Square uses, and the PayPal Here app - it smokes all challengers.



Square also has additional fees for rewards cards.



The only real competitor is Shopify, but it's really no different than the PayPal system.
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I rarely use PayPal, and when I've tried, it's been horrible. I've been trying to order a book online from a non-profit organization, and while they use PayPal, they say you can use a Visa cars through PayPal. But every time I tried that, the transaction was rejected.

My wife then tried, with the same result. Finally, she called our credit card company, and they suggested trying the transaction while they were on the phone, so they could watch what was happening from their end. When my wife put in the expiration date of the card, our credit card company saw through PayPal that an incorrect month or year was being input by my wife. They say they've seen this with some frequency from PayPal.

I don't trust them.
 
Be careful with Square. We tried using them about 2 years ago and our account was flagged for large transactions. They gave us an option of refunding the money or waiting 90 days for it to clear. We followed their setup procedures to the 'T' and they still did this after they approved us. After we chose to have the customers' money refunded, they closed our account and said we could never open an account with them.
 
nddons said:
I rarely use PayPal, and when I've tried, it's been horrible. I've been trying to order a book online from a non-profit organization, and while they use PayPal, they say you can use a Visa cars through PayPal. But every time I tried that, the transaction was rejected.

My wife then tried, with the same result. Finally, she called our credit card company, and they suggested trying the transaction while they were on the phone, so they could watch what was happening from their end. When my wife put in the expiration date of the card, our credit card company saw through PayPal that an incorrect month or year was being input by my wife. They say they've seen this with some frequency from PayPal.

I don't trust them.
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If I had to guess, I'd guess that that error was actually the result of a coding error on the part of someone who wrote a widely-used payment script or plugin to interface with PayPal. My clients have no such problems.

Rich
 
N801BH said:
I say find a business, restaurant, retail outlet that wants to donate to this Charitable cause and use them to process that CC donations... They already have the equipment and accounts set up.
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That business will also see the charity money on the 1099 from the CC processor and has to account for the discount fees. Also, the donors see 'Bobs office supplies' on their cc statement which they have to put together with the donation. Also worth looking into your agreement whether you are allowed to process for another entity.
 
weilke said:
That business will also see the charity money on the 1099 from the CC processor and has to account for the discount fees. Also, the donors see 'Bobs office supplies' on their cc statement which they have to put together with the donation. Also worth looking into your agreement whether you are allowed to process for another entity.
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All good points...

1- ' Bob's Office Supply' can use the processing fee for its share of the donation.

2- The ones donating will see Bob's on their CC statement but there should be a simple work around, like a form letter stating the reason... I am guessing any decent accountant can give direction on how it's worded.


3- I didn't consider the angle on if the CC company and the IRS will let that transaction happen...:redface::redface:
 
N801BH said:
3- I didn't consider the angle on if the CC company and the IRS will let that transaction happen...:redface::redface:
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Just looked at my merchant services agreement:

4.4
Merchant does not do business under a trade name or style not previously disclosed in writing, and there has been no change in the nature of Merchant’s business or
the product lines that Merchant sells not previously disclosed;


4.5
The Transactionis genuine and arises from a bona fide sale of merchandise or services by Merchant, represents a valid obligation for the amount shown on the
Transaction Receipt and does not involve the use of the Card for any other purpose;


There may also be a banking law and money laundering angle to processing transactions on behalf of another entity (factoring).

I would suggest to set up an account in the name of the charity with one of the month-month fixed fee outfits that are set up for swipe transactions on a ipad (paypal, square etc.). That way you can process the card right at the fundraiser and you dont have to deal with the issue that people just hate to put their credit card number and expiration on a piece of paper that leaves their hands.
 
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