How much money is lost in processing fees when we donate?

[Bullieblack]

anyone know? I know 100 for paypal would probably be around 7 or 8 bucks but I am unsure about other payment methods. Do these companies work out a lower rate for fundraisers or something?

I was just thinking about it and it's like losing 300k or more in fees alone, that kinda sucks.

thoughts?

 

[me3]

Assume 5%.

 

[me3]

Of course, the longer the campaign waits to spend it, it is also losing value as the dollar deflates.

 

[theseus51]

I might be wrong, but I think I remember them saying last quarter, when they raised $5m, they spent $100,000 in transaction fees for online donations to process them.

 

[uncloned21]

Paypal takes more like 3% dont they? Every credit/debit card transaction is skimmed 2-3% as well. I wouldn't call it losing anything considering that without this wonderful service we would never raise 95% of what was donated online.

 

[JaylieWoW]

Of course, the longer the campaign waits to spend it, it is also losing value as the dollar deflates.

Brings new meaning to the word... PRICELESS doesn't it?

 

[RPatTheBeach]

Of course, the longer the campaign waits to spend it, it is also losing value as the dollar deflates.

I'm sure they have the money in an account that yields returns, which hopefully makes up for the inflation.

 

[jpa]

2-3% for bulk rate cc transactions.

 

[RPinSEAZ]

Each type of credit card (MC, Visa, Am Ex, Discover) has a different cost. Last I checked Am Ex and Discover charge the most.

 

[KingTheoden]

I think it varies on the service contract, but Visa charges about .8%-1.5%, MasterCard a little more (1.5%), then Amex, and then Discover (around 5%, a probable reason for the campaign not to except the card type.

 

[Bullieblack]

your right, the fee is worth it cause without it there would be no medium to channel our funds through. good point.

damn CC companies are making a killing off of us.

 

[Johncjackson]

$100 on Paypal is about $3, not $7-8. Most merchant accounts are probably around 2%.

It's not a "loss." It's a cost of doing business, like anything else. Sure, in some ways it would be nice not to have to pay it, but its a very good value. Cash and checks also both have processing expenses involved. Credit fees are a good deal, especially consdering you are going to take-in more money if you accept them than not. There are some people like me who ONLY use credit cards and then pay bills electronically monthly, as well as earn our money through electronic transactions.

Some people don't like to pay the water bill to flush the toilet, either.

 

[EvilEngineer]

A whole bunch... in the FEC filings for our 5 million for last quarter the processing fees were over $100,000.

 

[Question_Authority]

A whole bunch... in the FEC filings for our 5 million for last quarter the processing fees were over $100,000.

Which is about 2.5%. Cost of doing business. They have an interest bearing account I am sure. No worries.

 

[theseus51]

Don't let the transaction fee discourage you though. Campaigns would ideally have 100% donated online. It's easier, cleaner, and faster than processing checks or taking orders by phone. Think of the manpower and paperwork needed for "regular" donations. They would gladly sacrifice 2% to not have to do any writing, typing, filing, recording or depositing at all. The only time it might be worth it is a $2000 check or something, where 2% is $40. But even then, they might rather have it online.