Non-Profit Organizations: You Should Utilize Credit Card Payments and Donations

A non-profit organization should utilize the capabilities of accepting credit cards for payments and donations.  The bottom line is that by accepting credit cards, it can help your organization reach your financial goals faster and more efficiently.  It is crucial for your organization to understand the processing fees and how to minimize your costs.

What You Need to Know

When you chose a processor for accepting credit cards as a non-profit organization, it is important that you have an understanding of the two components that make up the cost of processing: interchange and assessments.  It is also imperative to understand what your mark-up cost is with the processor.

Interchange - For any business or organization, the interchange fee makes up the bulk of the cost to process credit cards. Interchange is a set of “categories” used to classify transactions - Each interchange category has a rate associated with it. When your organization accepts a card, the transaction is charged according to the rate for the category it falls into.  The interchange fees are paid to the issuing bank that issued the credit card to your customer.

Assessments - In credit card processing, assessments are the fees charged by the credit card associations (Visa, MasterCard & Discover.) These fees are in addition to the interchange rates and are paid to the card associations.

Markup - The processor’s markup is the amount that the processor makes as their profit from processing your transactions and handling the payment for you.  It is important for you to research your processing options, find a true expert in the field and chose a partner that you trust like Apex Payment Solutions!

What is important for a non-profit organization?

Non-profits, like all other businesses, still have to pay interchange, assessments and markup.  However, with a processor who is familiar with non-profit processing - it may be possible to secure lower interchange rates which would mean a lower total cost for you.  How your organization is set up and categorized is crucial because transactions that will only go to a lower rate if your organization is set up correctly with your merchant category code (MCC) – it is a 4-digit number assigned to a business or non-profit organization when they begin accepting credit cards. The MCC has a direct impact on what interchange fees your organization will pay for credit card transactions.  This is why it is crucial to have a processing expert help guide you through the set up process and to make sure your business is classified properly in order to save on your bottom line.

Other ways to save the bottom line

As we have stated throughout this blog, it is important to pick an expert that not only will help you secure a good rate (interchange + assessments + markups) but will help you find other ways to lower your overall expenses. 

Credit card processing for non-profits does not have to be a headache. Let Apex Payment Solutions help you find a way to incorporate credit card payments to increase your bottom line while minimizing your total costs.  Contact us today to find out how we can help your non-profit organization!

Tax Day Blues? Cut Your Overhead

Now that Tax Day has come and gone, you may be more focused on how you can lower your overhead costs. It’s almost impossible to run a business without some overhead. However, these operating costs can be minimized or eliminated in many cased, leaving you with more profits in your pockets.  A business with a streamlined operating expenses will have the best possible chance for success.  This week we will jump into five areas where we feel that you can really reduce your overhead – the more you know, the more you will save!

Merchant Service Fees – Most business owners do not take the time to know and understand their credit card processing fees. It is important to find a partner, like Apex Payment Solutions, who will take the time to sit down and explain the complexity of the credit card processing world and where you can cut your costs.  Several large processing companies charge outrageous fees and high swipe rates that kill the bottom line of many businesses.

Splurge on an Accountant – Many business owners make the mistake of trying to find the accountant with the lowest rates.  This is one area where we say you need to spend money to save money.  You cannot overlook the importance of finding an accountant that is an expert in your field! An accountant can also look into your “numbers” give you advice on areas where you can and should cut back. Most accountants have a network of partners that they refer out to help clients save on their bottom line. Overall, an accountant should be your number one ally as they are the ones that be also be able to help you find deductions on your taxes that you may overlook or not know about.

Reduce Staff Overheads / Multipurpose Employees – When you are hiring, try to find talent that can be used in multiple dimensions.  Maximum productivity from each employee should be the number one goal. Identify, look or hire employees that can serve in multiple roles and eliminate downtime.

Reduce Waste – The number one way to eliminate waste and keep money in your pocket is by going paperless. Every year, thousands of companies produce and distribute millions of printed booklets, catalogs, manuals, brochures and notices. Email and PDF documents, besides being environmentally responsible, can do the bulk of this work at a fraction printing costs. Business owners should also be aware of seasonal conditions and make it an office goal to become less energy-intensive - this means making small lifestyle changes. Switching to compact florescent lights, turning off overhead lights at night or when exiting a room, lowering the heat and AC during the winter and summer months.  Also you can also ask employees to bring their own coffee mugs and reusable silverware instead of supplying paper products, which can be both costly and wasteful.

Call On Your Network of Alliances – You cannot forget about friends and family, especially if they provide a product or service you need. These close links may be more willing to cut you a better rate for their services than outside help — plus, you know them and they know you and your business.

It is important that all businesses find a way to reduce overhead so that it can thrive and sustain. The five things listed above can give you a head start.  It is important to find a team of experts who can help guide you to savings.  If you want to know more about how you can save money with your credit card processing, contact Apex Payment Solutions today.  We will be happy to answer any and all of your questions and to show you how we can help your bottom line! 

Clover Go in Three Words: Simple, Secure and Affordable

Clover Go was introduced to the market in 2015 in order to appeal to the nontraditional businesses  - those that work outside of conventional store settings.  The affordable Point-of-Sale is a simple EMV-enabled credit and debit card reader that connects to a smart phone or tablet via the mobile device’s headphone jack – Simple, Secure and Affordable!

To use Clover Go, sellers download the Clover app onto an IOS or Android smart phone or tablet.  It connects over either WiFi or cellular network connection to accept payments.  The app lets you set the amount to be paid along with any taxes and even tips.   Business owners can also use the app to view any inventory transactions that have been made.  The app also allows a business owner to add as many employees and set preferences for each of them – it also allows users to “toggle” between different store locations which can come in handy!

“While the Clover platform serves businesses of all sizes, Clover Go is especially beneficial for businesses with mobile workforces or entrepreneurs just starting out who want to accept transactions while complying with the EMV liability shift,” Dan Charron, executive vice president and head of global business solutions at First Data, stated in a press release.

There are some features Clover Go offers that might make it a more appealing option for some small business owners.  First of all, Clover Go protects customer data with TransArmor, which uses encryption and tokenization to provide payment security.  Like the rest of the Clover Suite, a business owner can customize their Clover Go with other web-based apps from the Clover App Market.

The Clover Go is a game changer for many businesses that are not your traditional brick and mortar business.  It is also a great bridge for businesses that are in the infantry stages of accepting credit card payments.  At ApexPayment Solutions, we love to help our customers explore options that are best for them and helping the overall bottom line.  Ask us today, how Clover Go can be a viable option for you and your business!