Do Churches Pay Credit Card Fees for Online Giving?

Let's start by answering your question immediately: Yes, in most cases churches do pay a small credit card fee for each online giving transaction.

But, a number of different factors impact how large that fee is. And, there are some cases where churches don't pay any fees for online credit card giving. 

In this article, we'll dive into the details of credit card fees for online giving and explore some strategies that churches can use to minimize these fees.

Understanding Credit Card Fees for Online Giving

First, you need to understand that every digital transaction comes with a fee. Every single one. Whether you're buying groceries, filling up with gas, or giving online to a church, there will be a fee of some sort. This can't be avoided and is simply the cost of accepting credit card payments or donations.

So, for example, say that someone gives your church a donation of $1,000. And, let's say that the credit card platform you use charges 4%. That's $40. In other words, your church will receive $960, while the credit card processor will receive $40.

Factors Impacting Credit Card Fees for Churches

Here are some of the factors that impact how much churches pay in credit card fees for online giving:

Percentage Charged By the Processor

Each credit card processing platform charges a different percentage for each transaction. For example, one platform may charge 2%, while another may charge 4%. This can make a significant difference in how much your church pays in fees.

The higher the fee, the more you lose from every donation given to your church. This is why it matters that you pick the right credit card online giving platform. Your choice can be a difference of many thousands of dollars each year, depending on how many online donations you receive.

Types of Cards Accepted

Some credit cards charge higher fees than others. For example, American Express typically charges higher fees compared to Visa or Mastercard. Make sure to consider this when choosing a credit card processor for your church.

It's important to note that other types of fees, like ACH transfers, may have a different rate than credit card transactions.

Why the different rates for different transactions? It's a long and boring explanation that won't change anything in the long run. It's better if you just accept that different types of transactions are going to have different payment fees.

As you can see, things can get really complicated really fast when it comes to what credit card fees a church pays for online giving. This is one reason why online giving platforms, like Tithely, exist.

They make it easier for churches to accept donations without having to worry about all the complicated fees and processes. The different fees required by credit card companies can be brought together into a single, predictable, understandable fee.

And because online giving apps usually work with many churches, they can negotiate lower fees with credit card companies than your church could by itself. 

In addition, most online giving platforms offer support for a variety of payment methods beyond just credit cards. These can include ACH transfers, PayPal, and even text-to-give. By offering multiple options for donors to give, your church can appeal to a wider range of people and make it more convenient for them to donate.

Monthly Contract Fee

There's one other fee that we need to talk about when it comes to online church-giving solutions: monthly fees.

In addition to a fee for every transaction, some giving platforms also charge a monthly fee. This fee can vary greatly depending on the platform and the level of service provided.

Some platforms may charge a flat monthly fee, while others may base it on the number of donors or transactions your church has each month. It's important to carefully consider these fees when choosing an online giving platform, as they can add up over time.

How To Lower Credit Card Fees For Online Giving

There are a few things you can do to lower the fees you pay for credit card transactions.

Choose the right platform: This is absolutely essential. As mentioned earlier, some platforms have negotiated lower fees with credit card companies than others. Do your research and find a platform that offers the lowest transaction fees possible for your church. Additionally, some platforms charge a monthly subscription fee, which adds to your total cost.

Have members "cover the fee": At Tithely, we offer a unique feature in which members can actually cover the transaction cost for their giving. In other words, the church receives 100% of the tithe amount, and the member chooses to cover the fees associated with using a credit card. This not only helps your church save on fees, but it also encourages members to give more generously.

Encourage ACH transfers: ACH transfers are typically much lower in fees compared to credit card transactions. Encouraging your members to give through this method can significantly decrease the overall fees you pay for online giving.

Negotiate with credit card companies: If your church has a high volume of donations, you may be able to negotiate lower processing rates directly with the credit card company. This will require some negotiation skills and possibly bringing in a third-party consultant, but it can lead to significant savings in the long run.

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Choosing the Right Platform

So how do you choose the right online giving platform for your church? Here are some things to consider:

Pricing

Look at the fees charged by different platforms and compare them to see which one offers the best rates for your needs. Keep in mind that lower fees may come with limitations or restrictions on certain features.

Make sure to include all fee types in your calculations, including any monthly contract fees. Every fee your church has to pay results in less funds available for the church. 

Features

Consider what features are important to your church and make sure the platform you choose offers them. Some common features to look for include recurring donations, customizable donation forms, and integration with your church's website.

Also, consider how user-friendly the platform is and if it has a mobile app for donors to easily give on the go.

It's important to balance the features you get versus the fees that you pay. Maybe some features are worth more to your church than others and you're willing to pay a higher price for them. 

Customer Support

It's important to choose a platform that offers good customer support. As we've noted, when it comes to credit card fees for online giving, things can get complicated. Look for platforms that offer phone, email, or live chat support during business hours.

Some platforms may also have resources such as online tutorials or a help center for self-service assistance.

Enter Tithely

If you're looking for an online credit card processing platform that offers low fees and a huge number of features, Tithely is the way to go.

In terms of fees, Tithely charges a low fee of 2.9% + .30 for every credit card transaction with the exception of American Express, which is 3.5% + .30 per transaction. Our ACH fees are even lower, at 1% + .30 per transaction.

Tithely is the only giving platform with no monthly fee and effective transaction rates under 1%. This means you can increase your giving without increasing the fees your church has to pay.

And here's the kicker. There are no monthly fees with Tithely. You get all the incredible features for free.

The features that Tithley offers are second to none, including:

• Many ways to give: Tithely makes it possible for your church members to give in numerous ways, including credit cards, text-to-give, and a mobile donation app. 
  
  
• Integrations: Tithely integrates with many popular church management systems, making it easy to track giving and manage donor information.
  
  
• Customization options: You can easily set up recurring giving, designate funds for specific ministries or projects, and create branded donation forms to match your church's website.
  
  
• Real-time reporting: Tithely offers real-time analytics and reporting tools, allowing you to gain insights into giving patterns and trends, which can help in budget planning and resource allocation.
  
  
• Mobile-friendly experience: The platform is optimized for mobile devices, making it easier for church members to give on the go through their smartphones or tablets.
  
  
• Text-to-give functionality: This feature enables donors to make quick and easy donations via text message, providing a convenient option for those who may not have cash or a credit card readily available.
  
  
• Secure transactions: Tithely prioritizes security, ensuring that all transactions are processed securely using industry-standard encryption and compliance with PCI regulations.
  
  
• Multiple currency support: For churches with international members, Tithely allows you to accept donations in various currencies, simplifying the process for global supporters.
  
  
• Seamless donor communication: The platform provides tools for sending thank-you notes, contribution statements, and updates to donors, fostering stronger relationships within your church community.
  
  
• Dedicated support: Besides comprehensive resources, Tithely offers dedicated customer support to help navigate any issues or questions you may encounter while using the platform.

At Tithely, we understand the unique needs of churches and are committed to providing the best platform for online giving. With our low fees and user-friendly features, we strive to make the giving process easy and beneficial for both churches and their congregations.

So if you're ready to take your church's online giving to the next level, consider using Tithely as your trusted donation platform. Our team is constantly working to improve and expand our services, so you can focus on what truly matters - spreading your message and serving your community.

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