This “The Top 7 Pain Points of Payment Processing For NonProfits” originally published March 16, 2022 by Scottovia.
Digital payment processing solutions have become popular in recent years. It allows businesses to make or receive several payments hassle-free. It is undoubtedly a boon for all kinds of companies, including nonprofits.
As the need for payment processing platforms grew, so did the challenges that they have to thrive to provide a seamless experience to end-users.
The blog post has outlined seven of the most significant payment processing pain points for nonprofit organizations.
Integration issue is one of the common challenges in payment processing that leads to unnecessary processing time and costs. Therefore, it is critical to ensure payment platforms integrate without any friction.
When your payment processing platform is fully integrated, you can eliminate tedious administrative processes such as recording transactions manually and achieve operational efficiency with ease.
The digital landscape is evolving so are cybercrimes. The whole online landscape is prone to theft and hackers. Significantly, platforms offering solutions for payments exchange and containing sensitive and confidential information of users can always be the first target for cybercriminals.
Security measures are a serious consideration to ensure a robust payment processing platform. You must install and upgrade a payment fraud detection plugin on your website to mitigate the risk of any fraud. The extension can help you identify vulnerabilities that can lead to payment frauds, increase customers’ trust, and ensure a secure and seamless payment process.
Credit Card Data Theft
The Federal Trade Commission (FTC) report stated 4.8 million identity theft and credit card fraud in 2020. Therefore, payment processing industries must focus on security measures and compliance to ensure the security of card transactions in the payment industry.
You must have robust security protocols in place that can help you keep hackers away from attempting data leaks and security breaches.
For example, you can install a firewall configuration, security system, and applications To protect the cardholder data. Also, make sure to comply with Payment Cards Industry (PCI) regulations. PCI DSS mitigates the risk of credit card data leaks and provides solutions to deal with data theft.
High Rates and Other Costs
It can be challenging to audit and validate the payment processing costs as processing fees are constantly revising and rising globally. So if you aren’t checking your rates and asking the right questions to your processor, you could be burned out of your pocket.
Instead of paying a high fee and additional cost to your payment platform provider, you may consider alternatives that offer the same services and functionality at a better rate.
Regular Updates to the Payment Features
With the continuous advancement of the digital payment system, several payment options and features in the payment processing industry have been introduced in recent years — for example, the payments through Mobile Wallets.
This can be challenging for the payment gateway companies to provide the maximum options in the checkout. For this, they have to tie-ups with a payment service provider that satisfies the maximum seller/buyer’s needs.
Before choosing a payment processing platform, contact the support team of gateway processors to gain in-depth knowledge about their services.
By doing so, you can ensure a safe transaction and ease maintaining cash payments processing.
Multi-Currency Payment Methods
By offering multiple currency options, nonprofits can attract donors from other countries and entice them to become regular contributors. However, adding multi-currency support is challenging. First, they may need a new bank account to process cross-border transactions. Then, regulatory authorities tend to create restrictions on payment processing or lack of government support.
Following the government-led initiatives and mandates to regulate the payments can help nonprofits mitigate cross-border transaction challenges.
Lack of Support
Delayed or unprocessed payments can generate friction for donors and disappoint them. Payment processing should be quick seamless and provide customer support when needed. If you’re not getting the help in and out of conventional business hours, you may need to choose a different platform that offers customer support.
Payment Processing for NonProfits Doesn’t Have to be Painful
When choosing the right payment processing services provider, make sure to consider the above challenges, discuss ins and out of their platform and ensure that they are a good fit for your nonprofit.
Collaborating with a pure market player that offers comprehensive and customized payment processing solutions enables you to reduce your compliance requirements, ensure easy-to-integrate functionality, and upgrade features that elevate your customer experience.
Frequently Asked Questions (FAQs)
What payment methods do small businesses use?
The most common methods to make payments are:
- Wire Transfer
- Credit Card
- Check payments
- Contactless payments.
What are payment gateway issues?
The most common payment gateway issues are:
- High processing fee
- Lack of transparency in fee structure
- Cross-border transaction barriers
What are the problems in online transactions?
The most common challenges associated with online bill payments are as follows:
- Credit/Debit Card frauds
- Data Hacking
- Data Breach
Why do online payments fail?
Online payment fails due to various reasons. These errors can happen when a customer provides:
- Incorrect card details.
- The wrong one-time password (OTP)
- Insufficient funds in their account.
Why do we need a payment processor?
A payment processor enables businesses to accept multiple payment methods. The more payment methods a company incorporates, the more customers it can fetch and retain, which leads to high revenue and retention rate.