ACH Payment for Non-Profits

Non-Profits are the lifeblood of the social development community in any country right now. What with government accountability dwindling by the minute – it is up to social entrepreneurs and SJWs to take up the cause of the marginalized and weave it into a success story. This dream can be actualized only with the help of a steady flow of donations keeping the mission alive. Technology makes it easier than ever to streamline donations by using ACH payment processing meant for non-profits via low-cost methods.

What is  ACH  Payment Processing

Electronic transfer of funds from one bank account to the other is known as ACH. This transfer happens through an Automated Clearing House network – also known as ACH – that helps connect every bank across the country with each other. Fast and secure, the ACH payment processing tool enables donations to pop up instantly in your non-profit’s bank account as a direct deposit from the beneficiary. The donor only needs to initiate payment through an authorization form online. Once information about bank accounts such as account number, routing number, and financial entity name is provided – they are free to choose on the amount they wish to donate and swiftly make a one-time or recurring payment The Two types of ACH Transactions are Direct ACH deposit – meant for ‘pushing’ money into other accounts and Direct ACH payment – meant for ‘pulling’ money from individual/ business accounts. This is the type where a Donor would set up a one-time or recurring payment with Premium Payments website to make their significant donation to your Non-profit.

How ACH Payment Works for Non-Profits

Premium Payments helps you easily set up an ACH payment platform for your non-profit. An ACH transaction typically consists of the following elements:

  • Originator
    A bank/ Individual or business which initiates the ACH transaction through deposit or payment.
  • ODFI
    The Originating Depository Financial Institution serves as the entity responsible for processing the payment from the originator as it submits the entry.
  • Operator
    The entries are sent to an operator next, for sorting and processing.
  • Sorting
    Sorting is done by the operator to distinguish between payments and deposits.
  • RDFI
    The Receiving Financial Depository Institution receives the ACH entries. Next, the receiving bank must confirm if sufficient funds exist in the ODFI.

The final step in this arduous but meticulous process is for the RDFI to debit or credit the entity’s account.

  • Donor gives authorization for the electronic transaction by Merchant platform such as Premium Payment
  • Merchant Platform sets up one-time or recurring payments through ACH software integration.
  • ACH Software helps track origin and report on the submitted electronic transaction
  • ACH payment processing tools connect with several banks and ensure a secure, timely transaction.
  • ACH Operator receives electronic entry and debits/ credits respective bank
  • The account holder is notified of the transaction via statement.

Premium Payments helps track all donor information important to your non-profit using an integrated singular solution. All revenues from merchandise, fundraisers, or ticket sales also get synced together. What’s more, is that you get 24/7 access to financial reporting that guides all your decisions. 

The Benefits ACH Payment for Non-Profits 

The benefits of the ACH non-profit payment processing tool are far-reaching, to say the least. From helping one to keep the foundation or organization up and running by easing the process of payment to helping out in bringing additional revenue through merchandise – ACH can be a game-changer. More so, fundraisers are the life-blood of most non-profits where ACH payment processing is useful for ticket sales as most online sales and digital wallet platforms accept ACH payments instantly.

Some significant benefits to equipping yourself with the ACH payment processing tool are as follows:

  1. Enhanced ConvenienceNon-profit organizations all have their team members forever on their toes as resources are limited. The convenience of having a quick payment processing tool such as this frees up a lot of time and effort that could be put elsewhere as ACH accepts payments instantly.
  2. Increased SpeedMoney gets deducted from bank accounts swiftly without any extra processing time usually mandatory for cheque transactions. Recurring donations become easier and the charitable donor can make more frequent donations with the least hassle and time spent.
  3. Reduced Transaction Fees
    Credit and debit cards are infamous for charging high processing fees. While ACH transaction fees are as low as $0.60 at a 0.1% rate, credit cards are known to charge you a whopping 1.9% rate on a $0.10 transaction or around a $10 transaction fee for a donation worth $500. Thus, over time you end up saving more with ACH payment processing.
  4. Safety and Security
    ACH is a vastly improved option when it comes to the safety of your bank details – especially in the case of paper cheques. Unlike mail where account and routing information can get exposed – the ACH processing software uses a trusted authorization form.
  5. Improved Cash Flow
    As the organization revenue becomes predictable, Non-profits can improve long-term impact through recurring donations. The hassle of logistics and data input while donating to your organization happens only once – on the donor’s end – thus offering you the chance to include the option of recurring donation from the donors as they now no longer need to input their financial details time and again.

Recurring donations through ACH payment processing tools are said to get 42% more donations in a year as compared to one-time donations. The biggest of organizations are utilizing this donor behavior – by breaking down the donation and offering upgrades, such as UNICEF. It is time to give up the paper trail and stop counting cash when a partnership with Premium Payments helps you collect ACH payment information and also automate all future donations. Usher in an era of recurring donations and seamless transfer with the help of ACH payments processing.

To know more in-depth details about ACH payment processing, connect with us on (954)-934-9004, (305)-747-5855. Let us help you start your Premium Payments risk free premium online payment trial today!

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