Rate Comparison
Host Merchant Services Saves Non-Profit Organizations Money
Newark, DE (PRWEB) December 31, 2012
In the credit card processing industry Interchange is considered the cost of doing business, it is a toll that must be paid to use the Visa and MasterCard highway. For non-profit organizations however, Interchange fees take a bite directly out of incoming donations. Since these donations are the main source of income for charitable organizations, companies often seek alternative methods. Charitable and Social Service Organizations can benefit from Host Merchant Services and their new HMS Gives program, a credit card processing solution specifically designed for charities. In addition to the great service and targeted focus of HMS processing solutions, the program offers a great low rate designed just for these organizations.
Last year, Visa introduced the Consumer Credit Card Charity Interchange Rate Program for charitable organizations–– which specifically refers to organizations with the Merchant Category Code (MCC) of 8398, Charitable and Social Service Organizations – Fundraising. Host Merchant Services passes on this great rate through the HMS Gives Program. The interchange rate for this program is 1.35% + $0.05.
Processing requirements for the program will be the same as those for the current CPS Retail 2 Program (the previous interchange program that was available to charitable contributions):
- Transaction can be a swipe or key-entered transaction.
- Transaction settled within 1 day of authorization, authorization response data included in settled transaction.
- Transaction must be from the MCC 8938.
Registered charities with 501(c)(3) status can often obtain significant savings on their processing costs, and thus their bottom lines by accepting donations on credit cards using an Interchange Plus merchant account. Thanks to Durbin regulated debit for both Visa and MasterCard, donations made on a debit card qualify at 0.05% and 21 cents, the lowest rate possible. The cost for a $100 donation on a debit card amounts to 26 cents. Visa credit cards qualify for the Charity Interchange Rate of 1.35% and 5 cents, donations of $100 would cost the organization $1.40 via this method. MasterCard charges 1.58% and 10 cents for credit card transactions, bringing the total cost of a $100 donation to $1.68. PayPal charges 2.20% and 30 cents per transaction for both credit and debit card donations. The cost for a $100 donation via PayPal is $2.50.
Interchange Plus, also known as Cost Plus, pricing gives the customer a fixed rate over published Interchange Fees. Interchange Plus pricing is exclusively how Host Merchant Services quotes. As you can see, there is savings to be had on non-profit credit processing by using an Interchange Plus pricing model over PayPal, and encouraging donations via debit cards. To the left you will find a comparison table of various rates.
American banks and credit card processing companies make huge profits -- somewhere in the neighborhood of $250 million a year -- off of people's charitable donations. Host Merchant Services' HMS Gives program strives to reduce the burden on Charitable Organizations by giving them access to the lowest rates possible. Interchange Plus pricing allows these Non-Profits to qualify for the Visa Charity Rate, as well as the regulated debit rates for both Visa and MasterCard. Contact Host Merchant Services today to see how your Charity or Non-Profit organization can benefit from HMS Gives
About Host Merchant Services
Host Merchant Services provides complete financial transaction services solutions for your business. HMS offers innovative solutions in payment processing, including e-commerce, wireless, virtual terminals, retail, restaurant, and many other services custom tailored to the needs of your business. Host guarantees unsurpassed pricing, support, and customer service. Reliable payment processing is critical to your business and HMS is a partner you can trust to deliver. Let the technology, security, and payment-processing experts at Host Merchant Services help your business prosper.
For more about Host Merchant Services, please visit: http://www.hostmerchantservices.com