It's simple: donating by bank account is by far the least expensive method of payment in terms of fees to payment processors. This means that your nonprofit gets more from your donation, putting more of your contribution to work to fulfill its mission.
Why is it better?
Stripe, our payment processor, takes 0.8% of each bank account transaction, capped at $5, no matter how large the contribution. This compares to credit cards, where fees can vary between 2.2% + .30c to 3.5% of the total transaction and are never capped.
What's an example?
If you donate $1,000 via bank account, your nonprofit will receive $995.
If you make the same donation via credit card, your nonprofit will receive between $977 - $965 of your contribution, depending on the type of credit card you choose. That means that $22 to $35 of your donation will be redirected to the credit card company and not your nonprofit.
Why do we suggest it?
We believe that nonprofits shouldn't have to sacrifice their means to fulfill their mission. That's why we've placed "Bank Account" as the primary suggested payment method across our platform.
How does it work?
We've made payment via bank account incredibly easy, by partnering with secure third-party bank authorization platform Plaid.
Using Plaid means you don't need to remember your account and routing number, and you don't have to wait several days for small micro-deposits to hit your account to verify. Plaid partners with thousands of US-based banks and uses your online banking credentials to instantly access your account to make donations. Plaid is Stripe's preferred bank auth provider. Both are PCI Level 1 Compliant.
What do you mean by "Bank Accounts"?
"Bank Accounts" means either Checking, Saving, or Money Market accounts.