Guide to Credit Card Processing for Churches in 2025
Discover how credit card processing can simplify church donations, boost giving, and streamline financial management.
For about 2,000 years, churches handled donations mostly the same way: people physically donated money to the church, and the church kept track of donations by hand. It worked, but it was quite a bit of work to stay on top of everything.
In the last 15 years, a shift has occurred in how people can give to churches. Platforms have been created that allow churches to easily process credit card donations. These platforms can bring significant benefits to churches.
In this comprehensive guide, we'll explain everything you need to know about how credit card processing works for churches.
Understanding Credit Card Processing for Churches
Before we go any further, let's make sure we're all on the same page about how credit card processing for churches works.
What is Credit Card Processing?
Credit card processing is the process of electronically transferring funds from a customer's credit card to the church's bank account. This allows churches to accept payments for donations, event registrations, and other transactions without handling physical cash or checks.
How Does Credit Card Processing Work?
- A cardholder makes a payment using their credit card at the church's giving kiosk or online payment platform.
- The giving kiosk or online payment platform securely transmits the transaction information to the payment processor.
- The payment processor sends the transaction details to the card network (e.g. Visa, Mastercard) for authorization.
- The card network communicates with the issuing bank (the bank that issued the cardholder's credit card) to verify the available funds and authorize or decline the transaction.
- Once authorized, the payment processor returns a confirmation to the kiosk or online payment platform.
- The church receives the funds in their bank account within 1-2 business days.
Why Do Churches Need Credit Card Processing?
The reality is, many people no longer carry cash or checks with them. We're living in the age of Venmo and PayPal. For some, it's actually inconvenient to have to pay with a check or cash. This, in turn, inhibits people from giving.
By offering credit card processing, churches make it easier for members to give financially. The barriers to giving are significantly lowered. Churches can accept payments from anyone, anywhere, at any time, using their preferred method of giving.
If they want to give via credit card or debit card, that's perfectly fine.
Credit card processing also simplifies the accounting and record-keeping process for the church. All transactions are recorded digitally and can easily be tracked and organized. No more manually counting cash or depositing checks.
Believe it or not, offering credit card processing can potentially INCREASE overall giving for a church. Studies have shown that people tend to give more when they have multiple options for payment, such as credit card, debit card, or electronic transfer.
This makes sense on an intuitive level. When people can give through their preferred method, they're going to be much more likely to give.
Benefits of Credit Card Processing for Churches
We've already touched on some of the benefits of credit card processing for churches, but let's discuss this in a little more detail because the benefits are significant.
Increased Giving Opportunities
The more opportunities people have to give, the more likely they are to do it. When a church begins accepting credit cards for donations and tithes, it opens up a huge number of giving channels for people. This not only includes credit and debit cards but also various forms of electronic giving. By offering these multiple options, the church is making it easier for people to give according to their preferences and financial situation.
Additionally, church credit card processing also enables members to set up recurring giving. People can give automatically on a schedule, making it more convenient and consistent for both the member and the church.
Convenience For Church Members
For good or bad, convenience is a big factor in whether or not people give to a church. If it's not convenient to give, people won't. They'll find other organizations that accept credit cards to give their money to.
By offering credit card processing, churches make it much easier for members to give. They can give from wherever they are, whether that's at church or from home.
Enhanced Security
Some people may hesitate to give cash or checks at church due to security concerns. With credit card processing, churches can assure donors that their donations will be handled securely. Credit card processors have strict security protocols to protect sensitive information and prevent fraud. By using a reputable processor, churches can ensure the safety of their members' financial information.
Integration With Church Systems
The best church credit card processors are integrated directly into Church Management Software (ChMS). For example, Tithely integrates directly with many popular ChMS platforms. This integration makes it easier for churches to track and manage donations and keep accurate records for tax purposes. It also simplifies the process of acknowledging and thanking donors for their contributions.
Long-Term Financial Planning
When churches are able to consistently track donations, they have access to a significant amount of data. This data can highlight giving trends and patterns, which can assist in making informed decisions for long-term financial planning. A clear understanding of their finances can help churches stay on track with their budget and make strategic investments for growth.
Features to Look for in a Payment Processor for Churches
If you're considering implementing credit card processing in your church, there are several things you need to look for.
PCI Compliance
First and foremost, ensure the credit card processor is PCI compliant. This means they follow the standards set by the Payment Card Industry for handling sensitive information. Using a non-compliant processor puts your church at risk for data breaches and potential fines.
Integration Capabilities
If you're already using Church Management Software, it's really important that the credit card processing platform you choose integrates with that software. This will be a massive time-saver when managing different donations and financial records.
Multiple Payment Options
People want flexibility when it comes to payment options. Some will want to pay with a credit card; others may wish to pay by bank ACH transfer, and some will prefer to pay by text message. You want to make it as easy as possible for people to pay. Look for a processor that offers multiple payment options to meet the needs of your congregation.
Recurring Donations
Recurring donations are incredibly valuable for churches. Why? They provide a steady stream of income. This, in turn, makes financial planning all that much easier. Use a processor that offers this feature and makes it easy to set up recurring donations for your members.
Transparent Pricing
Pricing should be very clear when choosing your credit card processor. There shouldn't be any mysterious fees or confusing expenses. Find a processor that uses a simple transaction fee structure. Carefully read any contract and understand all fees before signing up with a processor.
Donor-Covered Fees
If donors want even more of their donations to go to the church, they can volunteer to pay the credit card processing fees. You want to choose a credit card processor that gives church members this option. It's a win-win for everybody.
How to Choose the Best Payment Processor for Your Church
There's a lot to consider when choosing the credit card processor for your church. It may even seem a bit overwhelming. Let us help cut through the clutter a bit. Here are some questions to consider when choosing your platform:
Questions to Consider
What are the processor’s integration capabilities?
As we've noted, it's essential that your credit card processor integrate with the various tools you use in your church. If it doesn't, you'll be left scrambling to move data from one platform to another, which is a nightmare. Make sure that the credit card processor you choose can easily pass data back and forth between tools.
Is the platform user-friendly for both staff and donors?
The platform you choose should be easy to navigate and use for both church staff and donors. It's crucial that the donation process is smooth and hassle-free for your members, as well as being simple for your team to manage on the back-end.
Does it offer strong customer support and fraud monitoring?
At some point, you may encounter issues or questions with your credit card processor. It's important to choose a platform with great customer support and fraud monitoring capabilities. You want to be able to get assistance quickly if problems arise.
What are the fees?
Every credit card processing platform charges a fee for its services. As much as possible, you want to minimize this fee. Be sure to research and compare the complete costs of different platforms before making a decision.
Steps to Set Up Credit Card Processing in Your Church
Now that you know what to look for in a credit card processor platform, let's talk about how to get started with credit card processing in your church.
Step 1: Choose The Right Provider
The first thing you need to do is choose the platform that's right for your church. You'll need to consider things like cost, features, ease of use, etc. Tithely Giving is a great place to start.
Step 2: Train Staff and Volunteers
Once you've chosen your credit card processing platform, you need to train your staff and volunteers how to use it. This includes things like how to process donations, how to troubleshoot common issues, and how to contact customer support if needed.
Step 3: Promote the Option for Online Giving
Make sure your members know you now accept credit card donations. Spread the word through announcements during services, social media posts, and email newsletters. Be sure to include information on how easy it is to give online and the benefits of doing so.
Step 4: Optimize Your Giving Platform
Optimizing your online giving platform can increase giving. Your donation pages should be mobile-friendly so that people can give from their phones. Your website should have clear calls to action, making it obvious to people how to give to your church. Also, make sure it's really simple for people to set up recurring donations.
Common Concerns
Fees and Costs
One of your biggest concerns is how much the credit card processing platform is going to cost. The good news is that you don't need to stress about that point. Most platforms aren't costly.
For example, Tithely doesn't have any monthly contracts, and their transaction fees are broken down as follows:
- Credit/Debit: 2.9% + 0.30 per transaction
- ACH/Bank: 1% + 0.30
- AMEX: 3.5% + 0.30
Security
Another common concern is security. You want to ensure that your donors' personal and financial information is safe when they make a donation. Good news here, too. The best online giving platforms have strict security standards and use encryption technology to protect sensitive information.
Tradition
You probably have a long tradition of physical giving in your church, and you don't want to see that disappear. Digital giving doesn't replace physical giving; it augments it. People can still give in person if they prefer, but digital giving allows for a convenient and easy way to give for those who may not always be able to attend services or events.
Real-Life Success Stories
Implementing online payment processing can significantly enhance giving within a church community. By offering digital giving options, churches remove barriers to donation, making it more convenient for members to contribute. This ease of access often leads to increased generosity among congregants.
For instance, Covenant Park Church experienced remarkable growth after adopting Tithely's digital giving platform. Facing challenges with traditional methods, the church integrated Tithely to streamline donations. This transition not only simplified the giving process but also fostered a culture of generosity. As a result, the congregation was able to raise funds to purchase 16 acres of land for a new building, paying it off within eight to nine months.
Moreover, data indicates that churches utilizing digital giving platforms like Tithely see an average increase in donations of 165% over two years. This substantial growth underscores the effectiveness of online payment processing in boosting church finances.
By embracing digital tools, churches can not only enhance their cash flow but also engage their communities more effectively, paving the way for future growth and outreach.
Future Trends in Church Payment Processing
The giving landscape is changing. Here are some trends in church payment processing that you should be aware of.
Contactless Giving
As churches look to the future, contactless giving is an increasingly vital tool for making tithing and donations more accessible. With the wider acceptance of technologies like mobile wallets (Apple Pay, Google Pay), text-to-give, and QR code donations, congregants can give instantly from their smartphones or watches, eliminating the need for cash or checks. These advancements will not only streamline the donation process but also enhance security, reduce administrative work, and foster more consistent giving. By embracing digital giving solutions, churches can position themselves for long-term financial sustainability and growth in an increasingly cashless world.
AI-Driven Insights
AI is changing the world rapidly, and we should expect it to impact the giving world as well. With AI, churches can gain insights into their donor demographics and giving patterns. This information can help guide future fundraising efforts and tailor messages to specific donors.
Blockchain and Cryptocurrencies
As blockchain technology and cryptocurrencies like Bitcoin are more widely adopted, we can expect to see them integrated into church payment processing. This option will open up giving opportunities for those who prefer to give with digital currencies.
FAQs About Credit Card Processing for Churches
How much does credit card processing cost for churches?
The cost of credit card processing for churches varies depending on the service provider and the type of transaction. Most providers charge a percentage fee per transaction, typically around 2-4%. Additional flat or monthly fees may also be associated with certain services.
What security measures should churches take?
To ensure the safety of donors' data, churches should work with a reputable payment processor that offers secure and encrypted transactions. They should also regularly review their security measures and update them as needed to stay ahead of potential threats.
Can churches accept donations from international donors?
Yes, many payment processors can accept donations from international donors. However, there may be additional fees associated with processing these transactions, so churches need to research and understand all costs involved.
What’s the difference between credit card processing and ACH payments?
Credit card processing involves using a credit or debit card to make payments, while ACH (Automated Clearing House) payments involve transferring funds directly from one bank account to another. ACH payments typically have lower processing fees and can be a more cost-effective option for churches.
How do recurring donations work?
Recurring donations allow donors to set up automatic, recurring payments on their chosen schedule. This is a convenient option for donors who want to make regular contributions without having to manually submit payments each time.
Conclusion
If your church doesn't accept credit card donations, it's missing out on a major source of revenue. With the right tools and strategies, you can maximize your fundraising efforts. You can also make giving much more convenient for your church members, which can help them be more generous. It's a win-win for everyone involved.
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Tithely provides the tools you need to engage with your church online, stay connected, increase generosity, and simplify the lives of your staff.
With tools like text and email messaging, custom church apps and websites, church management software, digital giving, and so much more… it’s no wonder why over 37,000 churches in 50 countries trust Tithely to help run their church.
For about 2,000 years, churches handled donations mostly the same way: people physically donated money to the church, and the church kept track of donations by hand. It worked, but it was quite a bit of work to stay on top of everything.
In the last 15 years, a shift has occurred in how people can give to churches. Platforms have been created that allow churches to easily process credit card donations. These platforms can bring significant benefits to churches.
In this comprehensive guide, we'll explain everything you need to know about how credit card processing works for churches.
Understanding Credit Card Processing for Churches
Before we go any further, let's make sure we're all on the same page about how credit card processing for churches works.
What is Credit Card Processing?
Credit card processing is the process of electronically transferring funds from a customer's credit card to the church's bank account. This allows churches to accept payments for donations, event registrations, and other transactions without handling physical cash or checks.
How Does Credit Card Processing Work?
- A cardholder makes a payment using their credit card at the church's giving kiosk or online payment platform.
- The giving kiosk or online payment platform securely transmits the transaction information to the payment processor.
- The payment processor sends the transaction details to the card network (e.g. Visa, Mastercard) for authorization.
- The card network communicates with the issuing bank (the bank that issued the cardholder's credit card) to verify the available funds and authorize or decline the transaction.
- Once authorized, the payment processor returns a confirmation to the kiosk or online payment platform.
- The church receives the funds in their bank account within 1-2 business days.
Why Do Churches Need Credit Card Processing?
The reality is, many people no longer carry cash or checks with them. We're living in the age of Venmo and PayPal. For some, it's actually inconvenient to have to pay with a check or cash. This, in turn, inhibits people from giving.
By offering credit card processing, churches make it easier for members to give financially. The barriers to giving are significantly lowered. Churches can accept payments from anyone, anywhere, at any time, using their preferred method of giving.
If they want to give via credit card or debit card, that's perfectly fine.
Credit card processing also simplifies the accounting and record-keeping process for the church. All transactions are recorded digitally and can easily be tracked and organized. No more manually counting cash or depositing checks.
Believe it or not, offering credit card processing can potentially INCREASE overall giving for a church. Studies have shown that people tend to give more when they have multiple options for payment, such as credit card, debit card, or electronic transfer.
This makes sense on an intuitive level. When people can give through their preferred method, they're going to be much more likely to give.
Benefits of Credit Card Processing for Churches
We've already touched on some of the benefits of credit card processing for churches, but let's discuss this in a little more detail because the benefits are significant.
Increased Giving Opportunities
The more opportunities people have to give, the more likely they are to do it. When a church begins accepting credit cards for donations and tithes, it opens up a huge number of giving channels for people. This not only includes credit and debit cards but also various forms of electronic giving. By offering these multiple options, the church is making it easier for people to give according to their preferences and financial situation.
Additionally, church credit card processing also enables members to set up recurring giving. People can give automatically on a schedule, making it more convenient and consistent for both the member and the church.
Convenience For Church Members
For good or bad, convenience is a big factor in whether or not people give to a church. If it's not convenient to give, people won't. They'll find other organizations that accept credit cards to give their money to.
By offering credit card processing, churches make it much easier for members to give. They can give from wherever they are, whether that's at church or from home.
Enhanced Security
Some people may hesitate to give cash or checks at church due to security concerns. With credit card processing, churches can assure donors that their donations will be handled securely. Credit card processors have strict security protocols to protect sensitive information and prevent fraud. By using a reputable processor, churches can ensure the safety of their members' financial information.
Integration With Church Systems
The best church credit card processors are integrated directly into Church Management Software (ChMS). For example, Tithely integrates directly with many popular ChMS platforms. This integration makes it easier for churches to track and manage donations and keep accurate records for tax purposes. It also simplifies the process of acknowledging and thanking donors for their contributions.
Long-Term Financial Planning
When churches are able to consistently track donations, they have access to a significant amount of data. This data can highlight giving trends and patterns, which can assist in making informed decisions for long-term financial planning. A clear understanding of their finances can help churches stay on track with their budget and make strategic investments for growth.
Features to Look for in a Payment Processor for Churches
If you're considering implementing credit card processing in your church, there are several things you need to look for.
PCI Compliance
First and foremost, ensure the credit card processor is PCI compliant. This means they follow the standards set by the Payment Card Industry for handling sensitive information. Using a non-compliant processor puts your church at risk for data breaches and potential fines.
Integration Capabilities
If you're already using Church Management Software, it's really important that the credit card processing platform you choose integrates with that software. This will be a massive time-saver when managing different donations and financial records.
Multiple Payment Options
People want flexibility when it comes to payment options. Some will want to pay with a credit card; others may wish to pay by bank ACH transfer, and some will prefer to pay by text message. You want to make it as easy as possible for people to pay. Look for a processor that offers multiple payment options to meet the needs of your congregation.
Recurring Donations
Recurring donations are incredibly valuable for churches. Why? They provide a steady stream of income. This, in turn, makes financial planning all that much easier. Use a processor that offers this feature and makes it easy to set up recurring donations for your members.
Transparent Pricing
Pricing should be very clear when choosing your credit card processor. There shouldn't be any mysterious fees or confusing expenses. Find a processor that uses a simple transaction fee structure. Carefully read any contract and understand all fees before signing up with a processor.
Donor-Covered Fees
If donors want even more of their donations to go to the church, they can volunteer to pay the credit card processing fees. You want to choose a credit card processor that gives church members this option. It's a win-win for everybody.
How to Choose the Best Payment Processor for Your Church
There's a lot to consider when choosing the credit card processor for your church. It may even seem a bit overwhelming. Let us help cut through the clutter a bit. Here are some questions to consider when choosing your platform:
Questions to Consider
What are the processor’s integration capabilities?
As we've noted, it's essential that your credit card processor integrate with the various tools you use in your church. If it doesn't, you'll be left scrambling to move data from one platform to another, which is a nightmare. Make sure that the credit card processor you choose can easily pass data back and forth between tools.
Is the platform user-friendly for both staff and donors?
The platform you choose should be easy to navigate and use for both church staff and donors. It's crucial that the donation process is smooth and hassle-free for your members, as well as being simple for your team to manage on the back-end.
Does it offer strong customer support and fraud monitoring?
At some point, you may encounter issues or questions with your credit card processor. It's important to choose a platform with great customer support and fraud monitoring capabilities. You want to be able to get assistance quickly if problems arise.
What are the fees?
Every credit card processing platform charges a fee for its services. As much as possible, you want to minimize this fee. Be sure to research and compare the complete costs of different platforms before making a decision.
Steps to Set Up Credit Card Processing in Your Church
Now that you know what to look for in a credit card processor platform, let's talk about how to get started with credit card processing in your church.
Step 1: Choose The Right Provider
The first thing you need to do is choose the platform that's right for your church. You'll need to consider things like cost, features, ease of use, etc. Tithely Giving is a great place to start.
Step 2: Train Staff and Volunteers
Once you've chosen your credit card processing platform, you need to train your staff and volunteers how to use it. This includes things like how to process donations, how to troubleshoot common issues, and how to contact customer support if needed.
Step 3: Promote the Option for Online Giving
Make sure your members know you now accept credit card donations. Spread the word through announcements during services, social media posts, and email newsletters. Be sure to include information on how easy it is to give online and the benefits of doing so.
Step 4: Optimize Your Giving Platform
Optimizing your online giving platform can increase giving. Your donation pages should be mobile-friendly so that people can give from their phones. Your website should have clear calls to action, making it obvious to people how to give to your church. Also, make sure it's really simple for people to set up recurring donations.
Common Concerns
Fees and Costs
One of your biggest concerns is how much the credit card processing platform is going to cost. The good news is that you don't need to stress about that point. Most platforms aren't costly.
For example, Tithely doesn't have any monthly contracts, and their transaction fees are broken down as follows:
- Credit/Debit: 2.9% + 0.30 per transaction
- ACH/Bank: 1% + 0.30
- AMEX: 3.5% + 0.30
Security
Another common concern is security. You want to ensure that your donors' personal and financial information is safe when they make a donation. Good news here, too. The best online giving platforms have strict security standards and use encryption technology to protect sensitive information.
Tradition
You probably have a long tradition of physical giving in your church, and you don't want to see that disappear. Digital giving doesn't replace physical giving; it augments it. People can still give in person if they prefer, but digital giving allows for a convenient and easy way to give for those who may not always be able to attend services or events.
Real-Life Success Stories
Implementing online payment processing can significantly enhance giving within a church community. By offering digital giving options, churches remove barriers to donation, making it more convenient for members to contribute. This ease of access often leads to increased generosity among congregants.
For instance, Covenant Park Church experienced remarkable growth after adopting Tithely's digital giving platform. Facing challenges with traditional methods, the church integrated Tithely to streamline donations. This transition not only simplified the giving process but also fostered a culture of generosity. As a result, the congregation was able to raise funds to purchase 16 acres of land for a new building, paying it off within eight to nine months.
Moreover, data indicates that churches utilizing digital giving platforms like Tithely see an average increase in donations of 165% over two years. This substantial growth underscores the effectiveness of online payment processing in boosting church finances.
By embracing digital tools, churches can not only enhance their cash flow but also engage their communities more effectively, paving the way for future growth and outreach.
Future Trends in Church Payment Processing
The giving landscape is changing. Here are some trends in church payment processing that you should be aware of.
Contactless Giving
As churches look to the future, contactless giving is an increasingly vital tool for making tithing and donations more accessible. With the wider acceptance of technologies like mobile wallets (Apple Pay, Google Pay), text-to-give, and QR code donations, congregants can give instantly from their smartphones or watches, eliminating the need for cash or checks. These advancements will not only streamline the donation process but also enhance security, reduce administrative work, and foster more consistent giving. By embracing digital giving solutions, churches can position themselves for long-term financial sustainability and growth in an increasingly cashless world.
AI-Driven Insights
AI is changing the world rapidly, and we should expect it to impact the giving world as well. With AI, churches can gain insights into their donor demographics and giving patterns. This information can help guide future fundraising efforts and tailor messages to specific donors.
Blockchain and Cryptocurrencies
As blockchain technology and cryptocurrencies like Bitcoin are more widely adopted, we can expect to see them integrated into church payment processing. This option will open up giving opportunities for those who prefer to give with digital currencies.
FAQs About Credit Card Processing for Churches
How much does credit card processing cost for churches?
The cost of credit card processing for churches varies depending on the service provider and the type of transaction. Most providers charge a percentage fee per transaction, typically around 2-4%. Additional flat or monthly fees may also be associated with certain services.
What security measures should churches take?
To ensure the safety of donors' data, churches should work with a reputable payment processor that offers secure and encrypted transactions. They should also regularly review their security measures and update them as needed to stay ahead of potential threats.
Can churches accept donations from international donors?
Yes, many payment processors can accept donations from international donors. However, there may be additional fees associated with processing these transactions, so churches need to research and understand all costs involved.
What’s the difference between credit card processing and ACH payments?
Credit card processing involves using a credit or debit card to make payments, while ACH (Automated Clearing House) payments involve transferring funds directly from one bank account to another. ACH payments typically have lower processing fees and can be a more cost-effective option for churches.
How do recurring donations work?
Recurring donations allow donors to set up automatic, recurring payments on their chosen schedule. This is a convenient option for donors who want to make regular contributions without having to manually submit payments each time.
Conclusion
If your church doesn't accept credit card donations, it's missing out on a major source of revenue. With the right tools and strategies, you can maximize your fundraising efforts. You can also make giving much more convenient for your church members, which can help them be more generous. It's a win-win for everyone involved.
podcast transcript
Tithely provides the tools you need to engage with your church online, stay connected, increase generosity, and simplify the lives of your staff.
With tools like text and email messaging, custom church apps and websites, church management software, digital giving, and so much more… it’s no wonder why over 37,000 churches in 50 countries trust Tithely to help run their church.
For about 2,000 years, churches handled donations mostly the same way: people physically donated money to the church, and the church kept track of donations by hand. It worked, but it was quite a bit of work to stay on top of everything.
In the last 15 years, a shift has occurred in how people can give to churches. Platforms have been created that allow churches to easily process credit card donations. These platforms can bring significant benefits to churches.
In this comprehensive guide, we'll explain everything you need to know about how credit card processing works for churches.
Understanding Credit Card Processing for Churches
Before we go any further, let's make sure we're all on the same page about how credit card processing for churches works.
What is Credit Card Processing?
Credit card processing is the process of electronically transferring funds from a customer's credit card to the church's bank account. This allows churches to accept payments for donations, event registrations, and other transactions without handling physical cash or checks.
How Does Credit Card Processing Work?
- A cardholder makes a payment using their credit card at the church's giving kiosk or online payment platform.
- The giving kiosk or online payment platform securely transmits the transaction information to the payment processor.
- The payment processor sends the transaction details to the card network (e.g. Visa, Mastercard) for authorization.
- The card network communicates with the issuing bank (the bank that issued the cardholder's credit card) to verify the available funds and authorize or decline the transaction.
- Once authorized, the payment processor returns a confirmation to the kiosk or online payment platform.
- The church receives the funds in their bank account within 1-2 business days.
Why Do Churches Need Credit Card Processing?
The reality is, many people no longer carry cash or checks with them. We're living in the age of Venmo and PayPal. For some, it's actually inconvenient to have to pay with a check or cash. This, in turn, inhibits people from giving.
By offering credit card processing, churches make it easier for members to give financially. The barriers to giving are significantly lowered. Churches can accept payments from anyone, anywhere, at any time, using their preferred method of giving.
If they want to give via credit card or debit card, that's perfectly fine.
Credit card processing also simplifies the accounting and record-keeping process for the church. All transactions are recorded digitally and can easily be tracked and organized. No more manually counting cash or depositing checks.
Believe it or not, offering credit card processing can potentially INCREASE overall giving for a church. Studies have shown that people tend to give more when they have multiple options for payment, such as credit card, debit card, or electronic transfer.
This makes sense on an intuitive level. When people can give through their preferred method, they're going to be much more likely to give.
Benefits of Credit Card Processing for Churches
We've already touched on some of the benefits of credit card processing for churches, but let's discuss this in a little more detail because the benefits are significant.
Increased Giving Opportunities
The more opportunities people have to give, the more likely they are to do it. When a church begins accepting credit cards for donations and tithes, it opens up a huge number of giving channels for people. This not only includes credit and debit cards but also various forms of electronic giving. By offering these multiple options, the church is making it easier for people to give according to their preferences and financial situation.
Additionally, church credit card processing also enables members to set up recurring giving. People can give automatically on a schedule, making it more convenient and consistent for both the member and the church.
Convenience For Church Members
For good or bad, convenience is a big factor in whether or not people give to a church. If it's not convenient to give, people won't. They'll find other organizations that accept credit cards to give their money to.
By offering credit card processing, churches make it much easier for members to give. They can give from wherever they are, whether that's at church or from home.
Enhanced Security
Some people may hesitate to give cash or checks at church due to security concerns. With credit card processing, churches can assure donors that their donations will be handled securely. Credit card processors have strict security protocols to protect sensitive information and prevent fraud. By using a reputable processor, churches can ensure the safety of their members' financial information.
Integration With Church Systems
The best church credit card processors are integrated directly into Church Management Software (ChMS). For example, Tithely integrates directly with many popular ChMS platforms. This integration makes it easier for churches to track and manage donations and keep accurate records for tax purposes. It also simplifies the process of acknowledging and thanking donors for their contributions.
Long-Term Financial Planning
When churches are able to consistently track donations, they have access to a significant amount of data. This data can highlight giving trends and patterns, which can assist in making informed decisions for long-term financial planning. A clear understanding of their finances can help churches stay on track with their budget and make strategic investments for growth.
Features to Look for in a Payment Processor for Churches
If you're considering implementing credit card processing in your church, there are several things you need to look for.
PCI Compliance
First and foremost, ensure the credit card processor is PCI compliant. This means they follow the standards set by the Payment Card Industry for handling sensitive information. Using a non-compliant processor puts your church at risk for data breaches and potential fines.
Integration Capabilities
If you're already using Church Management Software, it's really important that the credit card processing platform you choose integrates with that software. This will be a massive time-saver when managing different donations and financial records.
Multiple Payment Options
People want flexibility when it comes to payment options. Some will want to pay with a credit card; others may wish to pay by bank ACH transfer, and some will prefer to pay by text message. You want to make it as easy as possible for people to pay. Look for a processor that offers multiple payment options to meet the needs of your congregation.
Recurring Donations
Recurring donations are incredibly valuable for churches. Why? They provide a steady stream of income. This, in turn, makes financial planning all that much easier. Use a processor that offers this feature and makes it easy to set up recurring donations for your members.
Transparent Pricing
Pricing should be very clear when choosing your credit card processor. There shouldn't be any mysterious fees or confusing expenses. Find a processor that uses a simple transaction fee structure. Carefully read any contract and understand all fees before signing up with a processor.
Donor-Covered Fees
If donors want even more of their donations to go to the church, they can volunteer to pay the credit card processing fees. You want to choose a credit card processor that gives church members this option. It's a win-win for everybody.
How to Choose the Best Payment Processor for Your Church
There's a lot to consider when choosing the credit card processor for your church. It may even seem a bit overwhelming. Let us help cut through the clutter a bit. Here are some questions to consider when choosing your platform:
Questions to Consider
What are the processor’s integration capabilities?
As we've noted, it's essential that your credit card processor integrate with the various tools you use in your church. If it doesn't, you'll be left scrambling to move data from one platform to another, which is a nightmare. Make sure that the credit card processor you choose can easily pass data back and forth between tools.
Is the platform user-friendly for both staff and donors?
The platform you choose should be easy to navigate and use for both church staff and donors. It's crucial that the donation process is smooth and hassle-free for your members, as well as being simple for your team to manage on the back-end.
Does it offer strong customer support and fraud monitoring?
At some point, you may encounter issues or questions with your credit card processor. It's important to choose a platform with great customer support and fraud monitoring capabilities. You want to be able to get assistance quickly if problems arise.
What are the fees?
Every credit card processing platform charges a fee for its services. As much as possible, you want to minimize this fee. Be sure to research and compare the complete costs of different platforms before making a decision.
Steps to Set Up Credit Card Processing in Your Church
Now that you know what to look for in a credit card processor platform, let's talk about how to get started with credit card processing in your church.
Step 1: Choose The Right Provider
The first thing you need to do is choose the platform that's right for your church. You'll need to consider things like cost, features, ease of use, etc. Tithely Giving is a great place to start.
Step 2: Train Staff and Volunteers
Once you've chosen your credit card processing platform, you need to train your staff and volunteers how to use it. This includes things like how to process donations, how to troubleshoot common issues, and how to contact customer support if needed.
Step 3: Promote the Option for Online Giving
Make sure your members know you now accept credit card donations. Spread the word through announcements during services, social media posts, and email newsletters. Be sure to include information on how easy it is to give online and the benefits of doing so.
Step 4: Optimize Your Giving Platform
Optimizing your online giving platform can increase giving. Your donation pages should be mobile-friendly so that people can give from their phones. Your website should have clear calls to action, making it obvious to people how to give to your church. Also, make sure it's really simple for people to set up recurring donations.
Common Concerns
Fees and Costs
One of your biggest concerns is how much the credit card processing platform is going to cost. The good news is that you don't need to stress about that point. Most platforms aren't costly.
For example, Tithely doesn't have any monthly contracts, and their transaction fees are broken down as follows:
- Credit/Debit: 2.9% + 0.30 per transaction
- ACH/Bank: 1% + 0.30
- AMEX: 3.5% + 0.30
Security
Another common concern is security. You want to ensure that your donors' personal and financial information is safe when they make a donation. Good news here, too. The best online giving platforms have strict security standards and use encryption technology to protect sensitive information.
Tradition
You probably have a long tradition of physical giving in your church, and you don't want to see that disappear. Digital giving doesn't replace physical giving; it augments it. People can still give in person if they prefer, but digital giving allows for a convenient and easy way to give for those who may not always be able to attend services or events.
Real-Life Success Stories
Implementing online payment processing can significantly enhance giving within a church community. By offering digital giving options, churches remove barriers to donation, making it more convenient for members to contribute. This ease of access often leads to increased generosity among congregants.
For instance, Covenant Park Church experienced remarkable growth after adopting Tithely's digital giving platform. Facing challenges with traditional methods, the church integrated Tithely to streamline donations. This transition not only simplified the giving process but also fostered a culture of generosity. As a result, the congregation was able to raise funds to purchase 16 acres of land for a new building, paying it off within eight to nine months.
Moreover, data indicates that churches utilizing digital giving platforms like Tithely see an average increase in donations of 165% over two years. This substantial growth underscores the effectiveness of online payment processing in boosting church finances.
By embracing digital tools, churches can not only enhance their cash flow but also engage their communities more effectively, paving the way for future growth and outreach.
Future Trends in Church Payment Processing
The giving landscape is changing. Here are some trends in church payment processing that you should be aware of.
Contactless Giving
As churches look to the future, contactless giving is an increasingly vital tool for making tithing and donations more accessible. With the wider acceptance of technologies like mobile wallets (Apple Pay, Google Pay), text-to-give, and QR code donations, congregants can give instantly from their smartphones or watches, eliminating the need for cash or checks. These advancements will not only streamline the donation process but also enhance security, reduce administrative work, and foster more consistent giving. By embracing digital giving solutions, churches can position themselves for long-term financial sustainability and growth in an increasingly cashless world.
AI-Driven Insights
AI is changing the world rapidly, and we should expect it to impact the giving world as well. With AI, churches can gain insights into their donor demographics and giving patterns. This information can help guide future fundraising efforts and tailor messages to specific donors.
Blockchain and Cryptocurrencies
As blockchain technology and cryptocurrencies like Bitcoin are more widely adopted, we can expect to see them integrated into church payment processing. This option will open up giving opportunities for those who prefer to give with digital currencies.
FAQs About Credit Card Processing for Churches
How much does credit card processing cost for churches?
The cost of credit card processing for churches varies depending on the service provider and the type of transaction. Most providers charge a percentage fee per transaction, typically around 2-4%. Additional flat or monthly fees may also be associated with certain services.
What security measures should churches take?
To ensure the safety of donors' data, churches should work with a reputable payment processor that offers secure and encrypted transactions. They should also regularly review their security measures and update them as needed to stay ahead of potential threats.
Can churches accept donations from international donors?
Yes, many payment processors can accept donations from international donors. However, there may be additional fees associated with processing these transactions, so churches need to research and understand all costs involved.
What’s the difference between credit card processing and ACH payments?
Credit card processing involves using a credit or debit card to make payments, while ACH (Automated Clearing House) payments involve transferring funds directly from one bank account to another. ACH payments typically have lower processing fees and can be a more cost-effective option for churches.
How do recurring donations work?
Recurring donations allow donors to set up automatic, recurring payments on their chosen schedule. This is a convenient option for donors who want to make regular contributions without having to manually submit payments each time.
Conclusion
If your church doesn't accept credit card donations, it's missing out on a major source of revenue. With the right tools and strategies, you can maximize your fundraising efforts. You can also make giving much more convenient for your church members, which can help them be more generous. It's a win-win for everyone involved.
VIDEO transcript
For about 2,000 years, churches handled donations mostly the same way: people physically donated money to the church, and the church kept track of donations by hand. It worked, but it was quite a bit of work to stay on top of everything.
In the last 15 years, a shift has occurred in how people can give to churches. Platforms have been created that allow churches to easily process credit card donations. These platforms can bring significant benefits to churches.
In this comprehensive guide, we'll explain everything you need to know about how credit card processing works for churches.
Understanding Credit Card Processing for Churches
Before we go any further, let's make sure we're all on the same page about how credit card processing for churches works.
What is Credit Card Processing?
Credit card processing is the process of electronically transferring funds from a customer's credit card to the church's bank account. This allows churches to accept payments for donations, event registrations, and other transactions without handling physical cash or checks.
How Does Credit Card Processing Work?
- A cardholder makes a payment using their credit card at the church's giving kiosk or online payment platform.
- The giving kiosk or online payment platform securely transmits the transaction information to the payment processor.
- The payment processor sends the transaction details to the card network (e.g. Visa, Mastercard) for authorization.
- The card network communicates with the issuing bank (the bank that issued the cardholder's credit card) to verify the available funds and authorize or decline the transaction.
- Once authorized, the payment processor returns a confirmation to the kiosk or online payment platform.
- The church receives the funds in their bank account within 1-2 business days.
Why Do Churches Need Credit Card Processing?
The reality is, many people no longer carry cash or checks with them. We're living in the age of Venmo and PayPal. For some, it's actually inconvenient to have to pay with a check or cash. This, in turn, inhibits people from giving.
By offering credit card processing, churches make it easier for members to give financially. The barriers to giving are significantly lowered. Churches can accept payments from anyone, anywhere, at any time, using their preferred method of giving.
If they want to give via credit card or debit card, that's perfectly fine.
Credit card processing also simplifies the accounting and record-keeping process for the church. All transactions are recorded digitally and can easily be tracked and organized. No more manually counting cash or depositing checks.
Believe it or not, offering credit card processing can potentially INCREASE overall giving for a church. Studies have shown that people tend to give more when they have multiple options for payment, such as credit card, debit card, or electronic transfer.
This makes sense on an intuitive level. When people can give through their preferred method, they're going to be much more likely to give.
Benefits of Credit Card Processing for Churches
We've already touched on some of the benefits of credit card processing for churches, but let's discuss this in a little more detail because the benefits are significant.
Increased Giving Opportunities
The more opportunities people have to give, the more likely they are to do it. When a church begins accepting credit cards for donations and tithes, it opens up a huge number of giving channels for people. This not only includes credit and debit cards but also various forms of electronic giving. By offering these multiple options, the church is making it easier for people to give according to their preferences and financial situation.
Additionally, church credit card processing also enables members to set up recurring giving. People can give automatically on a schedule, making it more convenient and consistent for both the member and the church.
Convenience For Church Members
For good or bad, convenience is a big factor in whether or not people give to a church. If it's not convenient to give, people won't. They'll find other organizations that accept credit cards to give their money to.
By offering credit card processing, churches make it much easier for members to give. They can give from wherever they are, whether that's at church or from home.
Enhanced Security
Some people may hesitate to give cash or checks at church due to security concerns. With credit card processing, churches can assure donors that their donations will be handled securely. Credit card processors have strict security protocols to protect sensitive information and prevent fraud. By using a reputable processor, churches can ensure the safety of their members' financial information.
Integration With Church Systems
The best church credit card processors are integrated directly into Church Management Software (ChMS). For example, Tithely integrates directly with many popular ChMS platforms. This integration makes it easier for churches to track and manage donations and keep accurate records for tax purposes. It also simplifies the process of acknowledging and thanking donors for their contributions.
Long-Term Financial Planning
When churches are able to consistently track donations, they have access to a significant amount of data. This data can highlight giving trends and patterns, which can assist in making informed decisions for long-term financial planning. A clear understanding of their finances can help churches stay on track with their budget and make strategic investments for growth.
Features to Look for in a Payment Processor for Churches
If you're considering implementing credit card processing in your church, there are several things you need to look for.
PCI Compliance
First and foremost, ensure the credit card processor is PCI compliant. This means they follow the standards set by the Payment Card Industry for handling sensitive information. Using a non-compliant processor puts your church at risk for data breaches and potential fines.
Integration Capabilities
If you're already using Church Management Software, it's really important that the credit card processing platform you choose integrates with that software. This will be a massive time-saver when managing different donations and financial records.
Multiple Payment Options
People want flexibility when it comes to payment options. Some will want to pay with a credit card; others may wish to pay by bank ACH transfer, and some will prefer to pay by text message. You want to make it as easy as possible for people to pay. Look for a processor that offers multiple payment options to meet the needs of your congregation.
Recurring Donations
Recurring donations are incredibly valuable for churches. Why? They provide a steady stream of income. This, in turn, makes financial planning all that much easier. Use a processor that offers this feature and makes it easy to set up recurring donations for your members.
Transparent Pricing
Pricing should be very clear when choosing your credit card processor. There shouldn't be any mysterious fees or confusing expenses. Find a processor that uses a simple transaction fee structure. Carefully read any contract and understand all fees before signing up with a processor.
Donor-Covered Fees
If donors want even more of their donations to go to the church, they can volunteer to pay the credit card processing fees. You want to choose a credit card processor that gives church members this option. It's a win-win for everybody.
How to Choose the Best Payment Processor for Your Church
There's a lot to consider when choosing the credit card processor for your church. It may even seem a bit overwhelming. Let us help cut through the clutter a bit. Here are some questions to consider when choosing your platform:
Questions to Consider
What are the processor’s integration capabilities?
As we've noted, it's essential that your credit card processor integrate with the various tools you use in your church. If it doesn't, you'll be left scrambling to move data from one platform to another, which is a nightmare. Make sure that the credit card processor you choose can easily pass data back and forth between tools.
Is the platform user-friendly for both staff and donors?
The platform you choose should be easy to navigate and use for both church staff and donors. It's crucial that the donation process is smooth and hassle-free for your members, as well as being simple for your team to manage on the back-end.
Does it offer strong customer support and fraud monitoring?
At some point, you may encounter issues or questions with your credit card processor. It's important to choose a platform with great customer support and fraud monitoring capabilities. You want to be able to get assistance quickly if problems arise.
What are the fees?
Every credit card processing platform charges a fee for its services. As much as possible, you want to minimize this fee. Be sure to research and compare the complete costs of different platforms before making a decision.
Steps to Set Up Credit Card Processing in Your Church
Now that you know what to look for in a credit card processor platform, let's talk about how to get started with credit card processing in your church.
Step 1: Choose The Right Provider
The first thing you need to do is choose the platform that's right for your church. You'll need to consider things like cost, features, ease of use, etc. Tithely Giving is a great place to start.
Step 2: Train Staff and Volunteers
Once you've chosen your credit card processing platform, you need to train your staff and volunteers how to use it. This includes things like how to process donations, how to troubleshoot common issues, and how to contact customer support if needed.
Step 3: Promote the Option for Online Giving
Make sure your members know you now accept credit card donations. Spread the word through announcements during services, social media posts, and email newsletters. Be sure to include information on how easy it is to give online and the benefits of doing so.
Step 4: Optimize Your Giving Platform
Optimizing your online giving platform can increase giving. Your donation pages should be mobile-friendly so that people can give from their phones. Your website should have clear calls to action, making it obvious to people how to give to your church. Also, make sure it's really simple for people to set up recurring donations.
Common Concerns
Fees and Costs
One of your biggest concerns is how much the credit card processing platform is going to cost. The good news is that you don't need to stress about that point. Most platforms aren't costly.
For example, Tithely doesn't have any monthly contracts, and their transaction fees are broken down as follows:
- Credit/Debit: 2.9% + 0.30 per transaction
- ACH/Bank: 1% + 0.30
- AMEX: 3.5% + 0.30
Security
Another common concern is security. You want to ensure that your donors' personal and financial information is safe when they make a donation. Good news here, too. The best online giving platforms have strict security standards and use encryption technology to protect sensitive information.
Tradition
You probably have a long tradition of physical giving in your church, and you don't want to see that disappear. Digital giving doesn't replace physical giving; it augments it. People can still give in person if they prefer, but digital giving allows for a convenient and easy way to give for those who may not always be able to attend services or events.
Real-Life Success Stories
Implementing online payment processing can significantly enhance giving within a church community. By offering digital giving options, churches remove barriers to donation, making it more convenient for members to contribute. This ease of access often leads to increased generosity among congregants.
For instance, Covenant Park Church experienced remarkable growth after adopting Tithely's digital giving platform. Facing challenges with traditional methods, the church integrated Tithely to streamline donations. This transition not only simplified the giving process but also fostered a culture of generosity. As a result, the congregation was able to raise funds to purchase 16 acres of land for a new building, paying it off within eight to nine months.
Moreover, data indicates that churches utilizing digital giving platforms like Tithely see an average increase in donations of 165% over two years. This substantial growth underscores the effectiveness of online payment processing in boosting church finances.
By embracing digital tools, churches can not only enhance their cash flow but also engage their communities more effectively, paving the way for future growth and outreach.
Future Trends in Church Payment Processing
The giving landscape is changing. Here are some trends in church payment processing that you should be aware of.
Contactless Giving
As churches look to the future, contactless giving is an increasingly vital tool for making tithing and donations more accessible. With the wider acceptance of technologies like mobile wallets (Apple Pay, Google Pay), text-to-give, and QR code donations, congregants can give instantly from their smartphones or watches, eliminating the need for cash or checks. These advancements will not only streamline the donation process but also enhance security, reduce administrative work, and foster more consistent giving. By embracing digital giving solutions, churches can position themselves for long-term financial sustainability and growth in an increasingly cashless world.
AI-Driven Insights
AI is changing the world rapidly, and we should expect it to impact the giving world as well. With AI, churches can gain insights into their donor demographics and giving patterns. This information can help guide future fundraising efforts and tailor messages to specific donors.
Blockchain and Cryptocurrencies
As blockchain technology and cryptocurrencies like Bitcoin are more widely adopted, we can expect to see them integrated into church payment processing. This option will open up giving opportunities for those who prefer to give with digital currencies.
FAQs About Credit Card Processing for Churches
How much does credit card processing cost for churches?
The cost of credit card processing for churches varies depending on the service provider and the type of transaction. Most providers charge a percentage fee per transaction, typically around 2-4%. Additional flat or monthly fees may also be associated with certain services.
What security measures should churches take?
To ensure the safety of donors' data, churches should work with a reputable payment processor that offers secure and encrypted transactions. They should also regularly review their security measures and update them as needed to stay ahead of potential threats.
Can churches accept donations from international donors?
Yes, many payment processors can accept donations from international donors. However, there may be additional fees associated with processing these transactions, so churches need to research and understand all costs involved.
What’s the difference between credit card processing and ACH payments?
Credit card processing involves using a credit or debit card to make payments, while ACH (Automated Clearing House) payments involve transferring funds directly from one bank account to another. ACH payments typically have lower processing fees and can be a more cost-effective option for churches.
How do recurring donations work?
Recurring donations allow donors to set up automatic, recurring payments on their chosen schedule. This is a convenient option for donors who want to make regular contributions without having to manually submit payments each time.
Conclusion
If your church doesn't accept credit card donations, it's missing out on a major source of revenue. With the right tools and strategies, you can maximize your fundraising efforts. You can also make giving much more convenient for your church members, which can help them be more generous. It's a win-win for everyone involved.
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