The days of cash being king are over. Unless you’ve been living under a rock for the last couple decades and somehow remained oblivious during the COVID-19 pandemic, you’ve noticed a societal shift toward electronic or contactless payments. What does this mean for you and your organization? Ignoring this trend can seriously hurt the future growth of your organization, whether you’re managing a local nonprofit, chapter of a multi-level association, golf club, or any other group. Credit card processing fees may seem like a deterrent, especially if your group consists of volunteers, but the benefits are enough to outweigh whatever costs you incur – and we have proof. Check out these five payoffs of accepting electronic payments.
1. Appeal to a wider audience
Studies say that on average, Americans have four credit cards each, and the majority of consumers pay with debit or credit cards instead of cash. This means that accepting credit card payments increases your ability to attract potential members or donors who find electronic payments more convenient. You can connect with a larger audience to recruit and build your organization, reach more donors for your campaigns, and increase sales for your merchandise or services.
2. Increase revenue
Appealing to a wider audience translates into higher revenue. Research shows that people are willing to spend more on their credit cards than when making cash purchases. This has obvious benefits for fundraising campaigns, as it can lead to bigger donations from individuals. The New York Times cites several studies that demonstrate the increase in spending with credit versus cash of at least 5-10%. Another often-cited study states people spend 12-18% more when paying with a credit card.
3. Direct deposit increases cash flow
If you’re paying out of pocket to reserve a venue for your organization’s event because members couldn’t pay in advance, that’s a cash flow issue. Accepting electronic payments increases cash flow by limiting the time it takes for money to appear in your account. Instead of waiting for members or donors to mail a check, then depositing the check, and then waiting for it to clear, funds can be deposited directly into your account and processed quickly. This also removes the burden of holding onto large cash sums until you can make a deposit.
4. Build credibility with credit cards
5. Simplify recurring payments and donations
Organization members and donors can set up recurring membership payments and donations. memberplanet makes this easy by allowing you to accept electronic payments that will be processed and deposited directly into your designated account. Simplifying the payment process makes it easier to collect membership dues and retain current members, and is beneficial for collecting donations during fundraising season.
Accepting electronic payments simplifies the exchange of money for you and anyone you collect payments from. This is beneficial and convenient for collecting membership fees, receiving donations, and selling event tickets or any other product or service your offer. With an evident shift from cash to credit, it is essential to offer a variety of payment methods in order to retain members, grow your organization, and maximize potential revenue for your organization.
Updated since original publication on 05/20/17.