Some members may want to have the option of using electronic payments
with their ATM debit or credit cards for their church donations. Some people have planned carefully and
developed a system for paying as many of their expenses as possible with their
debit and credit cards. Instead of writing many checks each month,
they write one check to their bank or the credit card company when they receive their monthly statement. They get an automatic documented record of
their expenses and the extra protection or guarantees the credit card laws require. They do not pay the high credit card interest rates
because they pay off their balances every month. They also accumulate and enjoy the incentives given by their credit card company.
Free airfare from accumulated Frequent Flyer mileage is a common example.
You may have members whose businesses predictably get slow at the end of the year, followed by a dramatic increase in business in the
beginning of the next year. Some members may have businesses that have a dramatic increase in business and expenses during the end of
the year holidays, but do not have access to the profits and increased cash flow until January of the next year. They may need the tax
deduction, but may not have the actual funds in time for a donation before the end of the year. If they had the option of making a credit
card donation, they could make the year-end donation and get the tax deduction in that year, while postponing the actual payment until
the next year.
Consider the characteristics of your
congregation and respect their preferences. Generally people prefer to
stay in the familiar and resist change.
Donations by cash and check only will
be the payment method preferred by the older generation of people who are
somewhat unfamiliar with computers and digital technology.
Young adults, however, have grown up
in the digital age. Their familiarity with and attitudes about
computerized technology are quite different than their parents or
grandparents. Some may even be "put off" by the old fashion
cash and pass the plate method of giving, as some are from the older
generations to the modern electronic payment methods.
Respect the preferences of your
congregation, and poll your
members. Find out if you have any members who
would like the option of being able to use either an ATM debit card or a credit
card for their
church donations.
Concern About Debt and Credit Card Abuse
There
are a few who automatically equate debt, credit, and credit cards with
abuse. They are not differentiating those who charge and overspend, get
themselves into financial trouble, or are not responsible in honoring
their commitments; from those who are very responsible, always meet
their financial obligations, and use their credit wisely.
Credit cards are not for everyone. Some people haven't learned how or are unable to responsibly
and effectively manage their money and use their credit cards responsibly. The church should not promote or facilitate the irresponsible use of credit cards by blindly
accepting all credit card donations. The purpose of the program is not to encourage more debt, but for the convenience and respect
of those who want to use their credit card for their church donations and for the benefit of the church.
The secretary/treasurer or the person who handles the credit card charges should watch for possible
irresponsible credit card donations. A tactful and educational approach could be very beneficial to the person who has not learned how to
responsibly manage their money and finances.
The Mechanics of Making a Charge
The church will need a practical method of obtaining the
card information and submitting the
charge to the card processing network.
A traditional merchant
account requires a card "swipe" and a signature on the
imprinted receipt. Depending on the size of the congregation and number of people making credit card donations,
this method could be very burdensome and impractical.
Our system is very
practical and very easy to use. No technical or advanced computer skills
are needed. If a person can send e-mail, the person could use our
system.
Concern About the Cost of Donations
If a person gave a $100.00 donation by credit card, $4.00 would be taken out to pay for the
electronic card processing.
Some have expressed concern that the full $100.00 is not available for use by the church. The concern is likely triggered by
the explicit reference to a cost, its specific purpose and amount. Such a full disclosure is not typical.
The money collected from
the offering is deposited into a Bank. The Bank has a service charge for handling the money. The Church puts money into an investment fund.
There is a cost to setup and manage the investment. When money is given
during fund-raising, the costs associated with the fund-raiser are
deducted from the donations. Fund-raising expenses, bank charges, and
actually all overhead expenses are either directly or indirectly
deducted from donations. The card processing fee is a just another expense of doing business and should be considered
just like other expenses.
