Management Tips » Payment Processing

Payment processing is often handled by a third-party company. These companies are responsible for all credit card transactions. The process itself is complicated, but it works something like this: If a consumer wants to donate to your organization or register for an event, their credit card information will go through a payment processor. Once the information is successfully submitted, it will go through what is called a payment gateway, which checks to see if the credit card number is valid. It can also check to make sure the name, CSV number, and address match up. Once this is confirmed, the payment gateway sends the money to a merchant account, which holds the money until it is ready to be sent to your bank account.

Read more about payment processing, and why it is important to every nonprofit organization, in the articles below.