Choosing the best credit card processing for nonprofits can make a significant impact on fundraising efforts and donor satisfaction. This involves balancing cost-effectiveness, user-friendly features, and specialized tools tailored to the unique needs of nonprofits.
In this guide, we looked at the best nonprofit payment processing solutions and evaluated them based on pricing, features, support and reliability, user experience, and user reviews.
Based on our evaluation, here are the best nonprofit credit card processors for 2024:
Best nonprofit payment processing providers compared
Our Score (out of 5)
Monthly Fee Starts At
Nonprofit Processing Rate
Deposit Speed
Helcim
- Interchange + 8% for online transactions
- Interchange + 18% for in-person transactions
- Visa and Mastercard Charity Interchange Rates apply for MCC 83981
1-2 business days
Givebutter
- 2.9% + $0.30 for cards and digital wallets (donors have the option to cover this fee if Add tips is enabled)
- 1.9% + $0.30 for ACH payments
- Additional platform fee if tips are disabled: 1%-5%
3-5 business days
Stripe
- 2.2% + $0.30 for businesses with 501(c)(3) status
Same-day to 2 business days
PayPal
- 1.99% + $0.49 for businesses with 501(c)(3) status
Same-day to 2 business days
Square
- 2.6% + $0.10 for in-person transactions
- 2.9% + $0.30 for online transactions
- 3.5% + $0.15 for keyed-in transactions
Same-day to 2 business days
iATS
Not disclosed
- 2.49% to 3.2%
1-2 business days
Donorbox
- 2.2% + $0.30 (Stripe)
- 1.99% + $0.49 (PayPal)
- Platform fee: 1.75%-2.95%
1-3 business days
1MCC 8398 is Merchant Category Code 8398, which card networks assign to charitable or social services organizations.
Overall Score
4.32/5
Pricing
4.75/5
Features
4.22/5
Support and reliability
3.75/5
User experience
4.69/5
User scores
4.2/5
Pros
- Discounted interchange rates for qualified charities
- Automatic volume discount
- Option for donors to cover processing fee
Cons
- No nonprofit platform discount
- Limited integrations
- No dedicated fundraising tools
Why Helcim is good for nonprofits
With zero monthly fees and interchange-plus pricing, Helcim stands out as one of the best payment processors for nonprofits. This pricing model ensures that nonprofit organizations benefit from lower Visa and Mastercard interchange fees if they qualify for the Merchant Category Code (MCC) 8398, designated for Charitable and Social Services Organizations. This can result in significant savings on transaction costs. However, regular interchange rates will apply to organizations not classified under MCC 8398.
Helcim offers automatic volume discounts, further reducing costs for high-volume transactions. Its adaptable tools, like the CRM system for managing donor information, surcharging to pass processing fees onto donors, and subscription management for recurring donations, are valuable for nonprofits. Despite lacking specific nonprofit discounts and dedicated fundraising tools, Helcim’s cost-effective and versatile features make it a top choice for nonprofits.
Overall Score
4.3/5
Pricing
4/5
Features
4.22/5
Support and reliability
4.06/5
User experience
4.38/5
User scores
4.83/5
Pros
- Multiple fundraising tools
- Free donor management system for tracking and engagement
- Zero platform fees if tips are enabled
Cons
- Dependence on donor tips
- Limited in-person fundraising tools
- Additional platform fee if tips are disabled
Why Givebutter is good for nonprofits
Nonprofits looking for a cost-effective platform dedicated to them will find Givebutter suitable and easy to use. Aside from using Helcim’s surcharging tool, this is the only provider on the list that offers the potential of zero platform fees with full nonprofit functionalities. Its extensive fundraising tools include donation forms, auctions, events, and other campaign types.
Additionally, the built-in CRM system helps manage donor relationships efficiently and integrations with over 1,000 third-party apps enhance functionality. It also has real-time engagement tools like personalized emails and video messaging that boost donor interaction and support. Overall, Givebutter’s user-friendly and feature-rich platform makes it an excellent choice for nonprofits.
Overall Score
4.29/5
Pricing
4.5/5
Features
3.75/5
Support and reliability
4.38/5
User experience
4.38/5
User scores
4.47/5
Pros
- Discounted processing rate for nonprofits
- Robust developer tools and API
- 24/7 customer support
Cons
- No dedicated fundraising tools
- Requires 80% of donations to be processed on Stripe
- Nonprofit rate only applies to 501(c)(3) businesses
Why Stripe is good for nonprofits
Stripe is an excellent choice for nonprofits due to its discounted processing rate for 501(c)(3) organizations, which helps minimize costs, especially with its zero monthly fee. Its robust developer tools and API allow nonprofits to customize their payment solutions and integrate them seamlessly with their existing systems.
The platform also offers 24/7 customer support, ensuring that any issues can be resolved promptly. Although it lacks dedicated fundraising tools, Stripe’s flexibility and powerful features make it a strong option for tech-savvy nonprofits seeking a tailored payment processing solution.
Overall Score
4.29/5
Pricing
4.5/5
Features
4.22/5
Support and reliability
3.44/5
User experience
4.69/5
User scores
4.6/5
Pros
- Global reach
- Donor familiarity
- Discounted charity rates
Cons
- Account holds
- Limited fundraising tools
- High currency conversion fee
Why PayPal is good for nonprofits
PayPal is a standout choice for nonprofits due to its global reach and donor familiarity. With zero monthly fees, nonprofits only pay per transaction, which helps manage costs effectively. It offers a discounted charity rate of 1.99% + $0.49 per transaction for 501(c)(3) organizations, helping to reduce processing costs.
The familiarity of many donors with PayPal increases the likelihood of contributions. It supports multiple payment methods, including credit/debit cards, PayPal balance, and Venmo, providing flexibility for donors. The quick setup process allows nonprofits to start accepting donations swiftly, making it a convenient and efficient option for organizations of all sizes.
Overall Score
4.22/5
Pricing
4/5
Features
4.06/5
Support and reliability
4.06/5
User experience
4.38/5
User scores
4.6/5
Pros
- Flexible hardware options
- Omnichannel capabilities
- Easy set-up
Cons
- No nonprofit discounts
- Limited dedicated fundraising tools
- Limited customer support
Why Square is good for nonprofits
Square is an excellent choice for nonprofits, especially those with a focus on in-person donations and sales. Its flexible hardware options, including contactless chip readers and POS systems, make it easy to accept payments at events or in physical locations.
Its no monthly fees and easy setup help nonprofits get started without upfront costs. Robust reporting tools provide valuable insights into donations and sales, while omnichannel capabilities support both in-person and online transactions, offering nonprofits the flexibility they need to manage their funds effectively.
Overall Score
4.12/5
Pricing
4.5/5
Features
4.69/5
Support and reliability
3.44/5
User experience
3.75/5
User scores
4.23/5
Pros
- Specialized nonprofit focus
- Integrated solutions
- Dedicated support
Cons
- For nonprofits only
- Limited customization
- Fees are not disclosed
Why iATS is good for nonprofits
iATS is an excellent choice for nonprofits seeking integrated payment solutions tailored to their specific needs. With a specialized focus on nonprofits, iATS offers dedicated donation management and fundraising solutions. The platform seamlessly integrates with leading nonprofit management software, ensuring smooth data synchronization and simplifying administrative tasks. Additionally, iATS prioritizes donor data protection with robust security measures and PCI-DSS compliance, instilling trust among supporters.
Support for recurring donations is a key advantage, enabling nonprofits to manage predictable revenue streams for long-term sustainability. iATS also provides dedicated customer support that understands the unique challenges of nonprofit operations, offering knowledgeable assistance tailored to the sector’s needs.
Overall Score
3.99/5
Pricing
4.5/5
Features
3.75/5
Support and reliability
2.81/5
User experience
4.06/5
User scores
4.8/5
Pros
- Uses both Stripe and PayPal for payment processing
- Donor control over donation frequency
- Accepts stock or crypto donations
Cons
- Has an additional platform fee
- Pricing can be confusing
- Can be expensive
Why Donorbox is good for nonprofits
Donorbox is ideal for small nonprofits looking for flexibility in payment processing. It uses both Stripe and PayPal/Venmo, giving better control over operating costs. Its donor management tool gives more control to its donors. Donors can easily log in and manage their settings and payment methods, providing a smooth and user-friendly experience.
Its free plan is feature-rich and allows you to start accepting donations right away without any upfront costs. Its higher plan also accepts crypto or stock donations — something that other providers on this list don’t have.
What are nonprofit businesses?
Nonprofits exist to serve public or mutual benefits rather than to generate profits for owners. It is important to be categorized correctly as a nonprofit business because of several advantages it offers:
- Tax exemptions: Nonprofits, especially those with 501(c)(3) status, often qualify for federal and state tax exemptions.
- Eligibility for grants and donations: Only recognized nonprofits can receive certain grants and donations.
- Public trust: Official status enhances credibility and attracts more supporters.
- Discounted rates: Many service providers, including payment processors, offer discounted rates to nonprofits.
Nonprofit status, particularly 501(c)(3), and the Merchant Category Code (MCC) 8398 affect payment processing:
- Discounted processing rates: Nonprofits often receive lower rates, reducing transaction costs. Stripe, PayPal, and Donorbox all offer lower processing rates for 501(c)(3) businesses, while Helcim passes on lower interchange rates for businesses with MCC 8398.
- Waived fees: Set-up and monthly fees may be waived.
- Favorable terms: More flexible contract terms are often available when negotiating custom plans and rates, like with iATS.
Which is the best nonprofit payment processing provider?
Selecting the best credit card processing provider for your nonprofit hinges on specific needs and operational goals.
Helcim stands out for its transparent interchange-plus pricing and donor management tools, ideal for organizations prioritizing clear financial oversight. Givebutter provides a comprehensive nonprofit platform, potentially free for nonprofits if donors cover fees, offering customizable donation pages and event ticketing for effective supporter engagement.
Stripe provides global accessibility and robust API integration, making it scalable for online payments. PayPal has a user-friendly interface and extensive user base, while Square offers excellent tools for in-person donations. IATS and Donorbox round out the options with specialized features for nonprofits, such as recurring donations and international payment capabilities.
