What are Credit Card Processing Interchange Rates for Non-Profits?

ByManoj Bhatt

Interchange fees refer to the fees that card issuing banks are paid, whenever a purchase is made by a consumer with his or her debit or credit card. These fees cover fraud risks for a transaction along with handling expenses for sending payment to the merchant’s bank account via the acquiring bank.

How are Credit Card Interchange Rates Calculated?

There is a wide variation in Credit card interchange rates because of various factors. You might need to pay many potential rates.

The average interchange rate for credit cards is 1.8 % in the US. For debit cards it is about 0.3 %. But you need to understand that the value of such numbers is very less because any specific transaction can come under a wide range of potential rates.

Real interchange rates for specific credit card transactions depend on different factors which usually correlate to the risk level assumed by the issuing bank while approving it. The average interchange fee for credit and debit cards in the US only reflect an average of all potential interchange rates that are charged by all the top credit card companies out there.

Credit Card Processing Interchange Rates for Non-profits

Typically, interchange is regarded as an expense of conducting business in the Credit Card processing industry. However for non-profit organizations, interchange fees directly come from the incoming donations. For charitable organizations, such kinds of donations are the primary income sources. Naturally, alternative methods are often sought by companies. These include credit Card processing solutions that are designed for them specifically.

Charities that are registered with 501(c) (3) status can frequently save a lot on their processing expenses when they use and Interchange plus merchant account to accept donations on credit cards.

When it comes to interchange rates, a discounted rate is offered by National processing to non-profit organizations in the following ways:

  • Virtual: Interchange along with 0.20% and $0.10 for each transaction.

  • Storefront: Interchange along with 0.15% and $0.07 for each transaction.

For a non-profit organization, there are plenty of credit Card processing options available in the market to choose from. When you are looking for a credit Card processing system, it is important to find out about the nonprofit discounts that are available. Such discounts are offered by most off the processing systems out there, and it can be a good idea for you to seek out those. The monthly minimums should also be checked. These are essential – given that big and small non-profit organizations have varying requirements. Different types of credit Card processing systems are perfect for serving different donation volumes.