Do nonprofits pay card processing fees on donations?

Yes. Each card gift carries a processing cost, and the amount depends on how the gift is taken, the card used and your processor's pricing.

Is there lower interchange for charities?

Some card networks have special categories for qualifying charitable organizations. Eligibility and rates depend on the network and your processor, so ask what proof is required.

Can donors cover the processing fee?

Some organizations offer this. Rules vary by state and card brand, so check them and ask your processor before enabling it.

How do I find my effective rate as a nonprofit?

Divide total processing fees by total card gifts for the same period and multiply by 100.

Industry GuidesNovember 9, 20265 min read

Nonprofit Card Processing Fees: What to Check Before You Accept Donations

Donations, recurring gifts and event tickets are paid differently, so they can cost differently. Here is how nonprofit card fees work and what to ask a processor before you sign.

By ONKORE Team

Why nonprofit card fees need a closer look

Every card donation carries a processing cost, so a processing fee comes out of each gift. Most nonprofits take gifts in several ways: online donation forms, recurring monthly gifts, event tickets and in-person payments. Each of these can be priced differently, so the headline rate alone does not tell you what you pay.

What shapes your cost

How the gift is taken. Gifts keyed in or made online generally cost more than a card tapped or inserted in person.
Average gift size. Fixed per-transaction fees take a larger share of small gifts.
Card mix. Rewards and business cards usually carry higher interchange, the part set by the card networks and issuers.
Recurring gifts. Ask what happens when a stored card fails or expires, and whether there are extra fees for stored cards.
Software and monthly fees. Donation platforms, gateways and statements can add fees that are separate from processing.

Ask about nonprofit-specific rules

Some card networks have special interchange categories for qualifying charitable organizations. Whether you qualify, and what the category costs, depends on the network's rules and your processor. Ask any processor whether it applies these categories and what proof it needs, such as your tax-exempt status. Do not assume it happens automatically.

Donor-covered fees

Some organizations ask donors to cover the processing fee at checkout. Rules about adding fees to card payments vary by state and by card brand, and the wording donors see matters. Check the current rules for your state and your card brands before you turn this on, and ask your processor how it works.

Chargebacks and refunds

A donor can dispute a gift with their bank. Ask how disputes are handled, what each one costs, and what records help you respond. Keep clear receipts and donation confirmations. See our guide to reducing chargebacks.

Questions to ask any processor

What is the markup, separate from interchange and card network fees?
Are there monthly minimums, statement fees or PCI fees?
Is there a contract term, auto-renewal or an early termination fee?
How are recurring gifts and stored cards handled?
Do you apply charitable interchange categories, and what do you need from us?
How soon do funds reach our bank account?

See what to check before choosing a payment processor for a fuller checklist.

Measure what you pay

Divide your total processing fees by your total card gifts to get your effective rate. Our guide to calculating your effective rate shows how, and why processing fees go up explains common causes of change.

Next step

Send a recent statement for a free statement review, see ONKORE's nonprofit payment processing page, or view pricing. Pricing is subject to approval, and a statement review is not a savings guarantee.