Credit card payments for undergrads

November 15, 2007 5:50 PM

How can I set up a system for allowing fraternity members to pay their dues by credit card without shelling out cash for a service? Any legal issues?

I'm the alumni councelor for my fraternity at my old university and would like to help the undergrads make some positive changes within the chapter. I would like to set up a system where members can pay their dues and alumni can donate money to the chapter by using their credit cards. Obviously the fraternity is a nonprofit organization. First, what legal issues should I be warry about? Second, what are some ways I can accomplish this? I've looked into setting up a paypal account, but can businesses only take credit card payments? Ideally, I would like to give alumni the opportunity to make recurring donations of some trivial amount each month to ensure the undergrads have consistent cash for scholarships, trips, house maintenance, etc. Any idea?

posted by deeman to Education (7 answers total)

Credit card payment set up will involve fees to the Visa/MC/AmEx/Discover network provider. The paypal account might be effective as any for your limited purposes. However, your national group organization ought to be able to steer you in the right direction. It may have a method to earmark contributions to your local chapter. My business accepts credit cards and got a relatively inexpensive start-up through Costco's services. $ 20.00 minimum monthly fee off the % charged.
posted by Agamenticus at 6:20 PM on November 15, 2007

You can accept credit card payments via paypal but they will charge you a percentage on each transaction. You could set up a merchant account directly with your bank but there will likely be higher fees on that unless you have a lot of volume and if you want a POS terminal (card reading thing) that will cost too.
posted by polyglot at 6:24 PM on November 15, 2007

As an alternative to paypal, Google has their new Checkout program. It charges a 2% + $0.20 fee per transaction.
posted by demiurge at 6:40 PM on November 15, 2007

what demiurge said, except Google Checkout is FREE for non profits. See here or here for more info.
posted by batcrazy at 7:49 PM on November 15, 2007

Free, through the end of 2008. After 2008, it's going to be at the price I stated, unless they extend the deal or change the price.
posted by demiurge at 8:23 PM on November 15, 2007

OmegaFi is awesome.
posted by Mach5 at 9:24 PM on November 15, 2007

Billmonk.com?
posted by jragon at 11:19 PM on November 15, 2007