Receiving and processing Credit Cards

[TexasFirefighter]

I am the treasurer of a 501(c)3 non-profit. We're pretty small and fall well under the $25,000 a year mark.

In a few weeks we're holding a Silent Auction. Last year we had some decent items but nothing that really brought in a lot of money. This year, however, we have quite a few big ticket items that may bring in several hundred dollars each...therefore I'd like to be able to accept more than just cash and checks.

Due to location restrictions I can't use a CC Terminal for the transactions so I'd like to get one of those older style card imprint contraptions and process the sales the next day. (I realize I can use an electronic terminal and plug it in later but for certain reasons, I'd rather not go that route)

So what is my next step? Who would I contact? I've been talking to Merchant Services but the sales guy totally creeps me out. If that's my only option, I'll suck it up an deal with him, but if I can avoid him, that would be tops.

Thanks in advance

 

[kmac30]

there are all sorts of companies that do merchant services. and most of the sales guys are pushy and pretty creepy. you might also contact the bank your non-profit has an account at. they might be able to handle it. all the guys i know handle accounts that process over 250k a month.

 

[txtxyeha]

Call you Bank and they will punt you to their own merchant services area/partner. This isn't going to be a money-maker for then, but they should take care of you.

Expect ~ $100 in set up fees, then they will charge you somewhere south of 3% for the discount rate plus roughly $0.50 in per transaction fees. Understand that the risk for the merchant account provider is chargeback risk. The cardholder has up to 60 days after their monthly statement is generated to call their bank and say, "Nah, I want my money back." They don't necessarily automatically get their money back, but MC/VISA tend to operate under the mantra that a tie goes to the cardholder. Point being your merchant provider is on the hook for getting money back to the cardholder, thus ask any provider how they intend to underwrite for chargeback risk. Hold-back some of the proceeds for a period of time? Ask for a cash deposit up front as collateral (then release after six months)? This is more info than you asked for, but "Ye shall know the truth...."

DialPay is a gateway service that gives you the authorization numbers over the phone, but that might be overkill for your situation given your clientele.

You should be up and running with a merchant account in about two weeks (maybe sooner).

 

[TexasEd]

great info there. Now I see why paypal is popular.

 

[Bobbs40]

Wouldn't people bring their checkbooks to an auction?

 

[accuratehorn]

People pay almost exclusively with credit cards for almost everything these days, so it may be a necessary evil. There may be a local company which will deal with you, maybe your bank can recommend one to attach to your bank account to receive card receipts.
If you think dealing with the initial salesperson is a pain, wait until you get set up to take credit cards and the daily telemarketing calls start in. They want you to switch to their credit card taking setup, and they will call, I can guarantee you, every ******* day until you die, and then they will still call someone else the next day. Most of them can't pronounce but four or five words of English, and there doesn't seem to be any way to dissuade them from repeating the calls over and over and over. I wish I had a death ray sometimes, that I could just push and vaporize these people.

 

[s102r18]

Sam's Club and Costco both offer discounted pricing for credit card processing (e.g., $0.20 plus 1.64% for card-swiped transactions). Details on their web sites. Note that "reward" and "business" cards may be charged higher rates.

The thing to watch out for in your case is the monthly fees and minimums. If you are only taking credit cards for this annual event, the monthly costs may be a deal killer.