What Are Processing Fees?
In order to process donations in RaiseDonors you will need to integrate your account with a payment processor. RaiseDonors integrates with two processors:
Depending on your account with Stripe and/or Authorize.net, you may have different processing fees for your transactions. Let's look at the fee structure for RaiseDonors and what that might mean for you.
First, RaiseDonors offers two subscription plans:
- RaiseDonors Standard charges a platform fee of 1.5% per transaction.
- RaiseDonors Pro charges a specific rate to each customer.
This platform fee is applied to the processing rate that Stripe/Authorize.net charges, which can vary based on the type of credit card processed. For example, Stripe/Authorize.net charge a higher rate to process American Express cards vs. Visa or Mastercard.
How Are Processing Fees Collected?
RaiseDonors transaction fees are Invoiced monthly.
RaiseDonors transaction fees are collected at the time of payment.
Are There Discounted Rates For Stripe & Authorize.net?
Stripe offers special, discounted rates for nonprofit organizations. Once you have finished setting up your new Stripe account (or even if you have an existing account), we recommend reaching out to the Stripe team by sending an email to email@example.com to ensure that you secure the lowest possible rates. You will need to provide the Stripe team with:
- Your EIN, or a letter from the IRS confirming your 501(c)(3) status
- Confirmation of the primary email address associated with your Stripe account
- Confirmation that greater than 80% of your payment volume will be tax-deductible donations
- Some examples of non-eligible donations, according to Stripe are: membership fees, tuition payments, ticket sales, registration fees, and auction payments.
Stripe fees at their lowest nonprofit rate (excluding the 0.7% RaiseDonors platform fee) are currently:
- Domestic (US) Visa/Mastercard: 2.2% + $0.30
- International Visa/Mastercard: 3.2% + $0.30
- Domestic (US) American Express: 3.5% + $0.00
- International American Express: 4.5% + $0.00
If your nonprofit processes more than $500,000 in donations annually, you may be eligible for a discount with Authorize.net. To find out if you qualify for a lower rate with Authorize.net, reach out to our Help Desk and we can put you in touch with our preferred Authorize.net reseller, EVO Payments, and they will help to negotiate a rate on your behalf.
Are There Transaction Limits For Stripe And/Or Authorize.net?
Stripe/Authorize.net may set transaction limits on individual credit card and ACH transactions. These limits can cause barriers in the event that a donor wishes to make a larger-than-usual gift.
Threshold limits may need to be increased for year end, especially when average gift amounts are expected to be higher.