If your association is like most, you rely on various tools and services to keep it running smoothly. One of the most importantyet often overlookedof these is payment processing. 

By working with a reputable payment processing company, you can ensure that all payments for products and services are handled quickly and securely.

An association needs a payment processing company for many reasons. First and foremost, a payment processing company can provide your association with a return on investment (ROI).

A payment processing company can help to streamline your association’s finances. Payment processing companies offer many features and benefits that can save your association time and money.

Let’s take a look at how payment processing companies work and the benefits they will provide to your association:

How payment processing companies work

A payment processing company typically charges a flat fee or a percentage of each transaction. In return, the payment processing company will provide your association with a merchant account. A merchant account allows your association to accept credit and debit card payments from your members.

Some payment processors also offer additional features such as recurring billing, invoicing, and payments by text or email. These features can further streamline your association’s finances and save you time and money.

Payment processing companies offer many advantages for associations. If you are looking for a way to improve your association’s finances and save time and money, consider using a payment processing company.

Advantages of payment processing companies for associations

Payment processing companies do this by providing associations with the ability to accept payments online. This means that more members will be able to pay their membership dues on time and that late payments will become a thing of the past. Online payments are typically processed much faster than traditional paper-based payments. 

This means that your association will have access to its funds quicker, which can be used to grow the organization or to fund important projects.

Another advantage of working with a payment processing company is that they can help to streamline your association’s finances. Payment processing companies can provide your association with powerful financial tools that can automate many tasks associated with membership dues and other payments. This includes tracking payments, issuing refunds, business loans, insurance services and sending out automatic receipts. These features can save your association a considerable amount of time and money. By automating these tasks, your association can focus on its core mission rather than administrative tasks.

Working with a payment processing company can give your association many advantages. 

Payment processing companies can help your association to increase its revenue, streamline its finances, and to focus on its core mission. If you are looking for a way to improve the efficiency of your association, then working with a payment processing company is a great option to consider.

How much do payment processing companies charge?

Payment processing companies typically charge a fee for each transaction. This fee is typically a percentage of the total transaction. For example, if a member pays $100 in dues, the payment processing company may charge a fee of 2.75%. 

The association would receive $97.25 from the payment processing company. 

Payment processing companies typically deposit payments into the association’s bank account within 1-2 business days. This means that associations can get their money quickly and easily. 

Save time and money by automating your payment processing efforts

Payment processing companies typically provide associations with a merchant account. 

A merchant account can save your association a considerable amount of time and money. This is because manual payment processing can be very time-consuming and expensive. It can be difficult to track who has paid and who has not. This can lead to late payments and missed dues. 

Overall, working with a payment processing company can help your association to eliminate the need for manual payment processing. 

Associations with banks vs. associations with a payment processing company

When it comes to payments, associations have a lot of options. They can go the traditional route and use a bank or hire a payment processing company. While banks may seem like the easier option, there are several advantages to working with a payment processing company.

For one, payment processing companies have experience working with associations. This means that they understand the unique needs of associations and can tailor their services to meet those needs. Payment processing companies also typically offer lower fees with NO contracts, compared to what banks charge and lock clients in because they don’t believe in their own services. This can lead to significant savings for associations over time.

Another advantage of working with a payment processing company is that they can provide more flexible payment options. This includes things like accepting credit card payments and setting up recurring payments. This can make it easier for members to pay their dues on time and help associations boost their revenue.

How do association members benefit from payment processing companies?

Payment processing companies offer several advantages for associations and their members. For one, payment processing companies can help to streamline the payment process. 

This means that members will be able to pay their dues on time and that late payments will become a thing of the past. Online payments are typically processed much faster than traditional paper-based payments. This can save members a considerable amount of time.

How donations work

Donations are an important source of revenue for many associations. Payment processing companies can help associations to accept donations online. This means members can donate to their association from anywhere in the world. 

Online payments are typically processed much faster than traditional paper-based payments. This means that your association will have access to its funds quicker, which can be used to grow the organization or to fund important projects. 

Payment processing companies can also provide your association with powerful financial tools that can automate many tasks associated with membership dues and other payments. 

This includes tracking payments, issuing refunds, and sending out automatic receipts. These features can save your association a considerable amount of time and money. You can focus on more important tasks rather than worrying about the logistics of payment processing.

Accepted payment types

Most payment processing companies accept all major credit cards. This includes Visa, Mastercard, American Express, and Discover. Many payment processing companies also accept PayPal and other types of electronic payments like Bitcoin and ACH. This can make it easier for members to pay their dues on time.

How refunds work

Payment processing companies can also help your association to issue refunds. This process is typically much faster than if your association were to issue the refund itself. By using a payment processing company, your association can keep track of all refunds in one place. This can save your association a considerable amount of time and money.

Dealing with chargebacks

Chargebacks can be a major problem for associations. Payment processing companies can help to reduce the risk of chargebacks by providing fraud prevention tools. If a chargeback does occur, payment processing companies can help your association to resolve the issue quickly and efficiently.

Overall, there are many advantages to working with a payment processing company. Payment processing companies understand the needs of associations and can tailor their services to meet those needs. Payment processing companies typically offer lower fees than banks. This can lead to significant savings for associations over time. 

Offering members more payment options

Payment processing companies typically offer a wide range of payment options. This includes things like accepting credit card payments and setting up recurring payments. This can make it easier for members to pay their dues on time and can help associations boost their revenue.

Some payment processing companies also offer member management software. This software can help your association keep track of its members, their contact information, and due payments. Member management software can help your association automate many of the tasks associated with membership, such as sending out renewal notices and issuing refunds.

You should also consider the features that are important to your association. For example, if your association relies heavily on donations, you will want to choose a payment processing company that offers powerful donation tools.

How associations can get started with a payment processing company

  1. The association member would sign up on your site and then simply provide their information to the payment processing company.
  2. The payment processing company would set up a merchant account for the association.
  3. The payment processing company would provide the association with a way to accept credit and debit card payments from their members.
  4. The payment processing company would offer additional features such as recurring billing, invoicing, and payments by text or email. These features can further streamline your association’s finances and save you time and money.
  5. The association member could use their credit or debit cards to make payments to the association.
  6. The payment processing company would deposit the payments into the association’s account and deduct their fee.
  7. The association would have access to their funds and can use them how they see fit.

What risks exist if an association doesn’t have a payment processing company?

If your association does not have a payment processing company, you may be at risk for many problems. For one, you may have difficulty accepting payments from members. This can make it difficult to collect dues on time. If you do not have a payment processing company, you will not have access to the powerful financial tools they offer.

This can make it difficult to track payments, issue refunds, and send automatic receipts. As a result, your association may spend more time and money on administrative tasks.

Another risk is that you may be subject to higher fees. Payment processing companies typically charge lower fees than banks. This means that if your association does not have a payment processing company, you may pay more in fees. You may also be at risk for fraud. Without a payment processing company, you will not have access to the same level of fraud protection. This can put your association at risk of losing money.

An association that does not have a payment processing company is subject to many risks, including higher fees, difficulty accepting payments, and increased exposure to fraud. 

How payment processing companies prevent fraud for associations

Payment processing companies typically have many fraud prevention measures in place. For one, they may require that members provide identification when making a payment. 

They may also use sophisticated software to detect fraud. Payment processing companies typically have trained staff to identify and prevent fraud. By taking these measures, payment processing companies can help to protect your association from fraud. 

Famous associations that use payment processing companies

  • American Association for the Advancement of Science
  • National Association of Realtors
  • American Medical Association
  • American Bar Association
  • National Collegiate Athletic Association
  • Arizona Medical Associations

Why Vector Payments is  the best payment processing company for associations

Vector Payments is the best payment processing company for associations because we offer many advantages.

For one, we have experience working with associations. We understand the unique needs of associations, and we are dedicated to providing the best possible service. We charge lower fees than banks. This means that your association will save money when you use our services.

Vector Payments also offers more flexible payment options. We can tailor our services to meet the specific needs of your association WITHOUT requiring a contract as we believe in our services and support as a whole.

We also offer many powerful financial tools. These tools can help you to track payments, issue refunds, and send out automatic receipts. As a result, your association will save time and money on administrative tasks.

Finally, Vector Payments is committed to preventing fraud. We have many measures to prevent fraud, including requiring members to provide identification when making a payment. We use sophisticated software to detect fraud. We also have trained staff to identify and prevent fraud. By taking these measures, we can help to protect your association from fraud.

Want to learn more about how Vector Payments can help your association? 

Request your free quote.

Published On: July 31st, 2022 / Categories: Uncategorized /