These days, the focus of charity has largely shifted from cash to card donations. This change is mainly because of the overall increasing trend of cashless transactions due to their convenience for both the donors and the charities. For donors, digital donations are quick and don’t require them to carry cash. For charity organisations, it makes the process more transparent than handling cash and easier to track and report. As a result, it has now become important for charities to switch to card machines to increase their donation potential.
In this blog, we’ll explain the importance of card machines for modern charities, how the process works, provide recommendations for the best card machines, and finally, outline how to choose the most suitable card machine.
Why should charities consider card machines for donations?
More people choose to go cashless these days, and card machines make it easier for potential donors to give on the spot. If a charity only accepts cash donations, donors will have to plan and carry cash for the event specifically. For people, it can easily turn into a chore, and it’s highly possible that the charity would miss out on a significant number of donations like that.
Card machines present a smart solution to this problem. An ideal charity setup would include both cash and card options for donations. So, all the contributors get a quick and secure option to donate in their preferred way, either through cash, contactless payments or a chip and PIN.
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How do card machines for charities work?
A card machine for charity basically works in the same way as any standard card machine. The only difference is that, instead of processing payments in exchange for products or services like a business does, it collects donations. The rest of the process remains the same.
Card machines (also known as PDQ machines) are linked to a payment gateway, which plays a major role in processing transactions. When a donor enters an amount for donation, the payment gateway securely communicates with the cardholder’s bank to authorise the transaction. Once the availability of sufficient funds is confirmed, the money is directly transferred to the charity’s bank account.
How are card donations processed?
The process of accepting card donations can be explained in the following simple steps:
1. Card is tapped or inserted: The transaction starts when a donor taps their card for contactless payments or inserts it for chip and PIN. They then enter the donation amount to proceed.
2. Payment authorisation: The card machine works by checking with the donor’s bank to confirm whether there are enough funds to cover the donation. If everything checks out, the transaction is approved.
3. Funds transferred: Once authorised, the payment is processed through the payment gateway, and the donation amount is deposited into the charity’s bank account.
Types of card machines for charity
There are three main types of card machines that a charity can use, according to its setup and how it plans to collect donations:
- Countertop machines: These are fixed devices and need to be plugged in at a specific location to process donations. Like the name suggests, they sit on a counter, and are best for places like charity shops, charity desks or donation points where donors can walk up and give on the spot.
- Portable card readers: These compact devices can either operate independently or connect to a smartphone to process transactions from anywhere. They’re perfect for events where volunteers have to move around the event. A card reader provides a convenient alternative to countertop card machines.
- Contactless terminals: These terminals offer a quick way to collect donations. These do not require inserting a card and entering a PIN, but instead allow donors to donate with just a tap of their card.
Benefits of using card machines for charities
Card machines provide significant advantages that go far beyond just convenience.
1. Increased donations
One of the most obvious advantages of employing a card reader machine for charitable donations is the potential for larger donations. As more individuals prefer carrying cash, providing card payment choices allows them to donate at the moment.
2. Convenience for donors
People love convenience, and in a world where everything is becoming cashless, card machines offer just that. Donors appreciate not having to dig for spare change. This convenience leads to more impulse donations, especially at events or on the high streets.
3. Better cash flow management
Handling cash can be difficult, not to mention the risks associated with having significant quantities of cash on hand at events. You don’t have to be concerned about this when using card payments. The donations are automatically put into your account, which makes cash flow management easier and more efficient.
Let’s say your charity runs multiple donation drives across a weekend. With cash, you’d need to count, store and manually deposit funds into the bank. A card machine for charity, however, deposits donations directly into your account within a few days.
4. Transparency and reporting
One of the major advantages of using a card reader machine for charity donations is the built-in transparency. Each transaction is recorded electronically, which means you can easily track donations, create reports and provide transparency to your donors and auditors.
5. Flexibility and scalability
Card machines offer flexibility, whether you’re running a one-off event or managing a permanent donation point in a church. Portable machines are ideal for street collection, while countertop machines are perfect for fixed locations. As your charity grows, you can scale up your use of card machines easily.
Best card readers for charities
| Card reader | Price |
|---|---|
|
Square |
£39 + VAT + 1.69%/transaction |
|
SumUp |
A device with a SIM card and 4G/LTE support. |
|
Zettle |
£29 + VAT + 1.75%/transaction |
Now, let’s dive into a few card machine models that are popular in the UK charity scene and see which might suit your needs best by comparing their prices and features.
Square
Square card reader for charity is another great option for people looking for flexibility. Like SumUp, it offers a portable card reader that accepts all types of card payments.
Cost: The Square reader costs £19 with no monthly fees. Transaction fees are 1.75% per donation.
SumUp
SumUp is one of the most affordable and widely used card machines for charities. It’s portable and simple to set up, making it ideal for events. The device accepts contactless payments, chip and PIN and even mobile payments.
Cost: The SumUp Air device costs around £39 with no monthly fees. Transaction fees are typically 1.69% per donation.
Zettle
Zettle is another strong contender, particularly for charities that need advanced features like donation reporting. It also comes with a feature of Repeat Payments, where you can set a fixed amount for the donors to pay quickly by tapping.
Cost: The Zettle Reader 2 costs £29 with transaction fees of 1.75%.
Considerations when choosing the right card machine for charity
The right card machine for charity should fit your organisation’s needs, whether it’s running mobile collection events or accepting credit card payments in a charity shop. Let’s walk through the key things to consider.
- Transaction volumes: If your charity processes a high volume of donations, choose a machine with lower transaction fees. For smaller charities, the upfront cost may be more important.
- Integration with your system: Look for card readers that integrate with your existing accounting or donation platforms. This will make managing donations and generating reports much easier
- Type of events: Portable machines are perfect for on-the-go fundraising events, while countertop machines from providers like Zettle are better suited to fixed donation points in offices or churches.
- Customer support: It’s essential to consider the level of customer support provided by the card machine company. Especially for charities new to card payments, having reliable support ensures you can resolve issues quickly and continue accepting donations without a hitch.
What to consider before implementing card machines for charities?
Introducing a card reader machine for charity donations can significantly boost your fundraising efforts, but before you jump in, follow these considerations.
Understand donor behaviour
How do your donors prefer to give? If there are a lot of donors at your events, you should choose a card reader with low transaction volumes. If your donors want easy access to card readers at the event, you might have to install multiple card terminals and choose a provider that provides affordable models.
Look at the security and compliance metrics
When dealing with card transactions, security is non-negotiable. Make sure your card reader machine for charity complies with the latest security standards, such as PCI DSS. This ensures that your donors’ data is encrypted and protected, which helps build trust.
Analyse the marketing of the new donation option
A shiny new card reader for charities won’t do much good if your donors don’t know it’s available. Make sure you’re communicating the option of card payments wherever possible. Here are a few quick strategies:
- Use clear, visible signage at fundraising events to highlight that you’re accepting card donations.
- Promote the use of card readers in your marketing campaigns.
- Train your volunteers to mention it during conversations with potential donors.
Have a backup plan for technical issues
As great as technology is, things can still go wrong. Whether it’s a low battery, poor signal or a technical glitch, it’s always good to have a backup plan in case your card reader decides to take a break during the big event.
Getting a card machine for your charity event is easy with ComparedBusiness UK
We at ComparedBusiness UK are experts in providing businesses with top card machines for charities. Just submit your business details in less than 2 minutes, and we will get back to you with quotes from the list of top card machine providers in the UK.
FAQs
A charity card machine works just like any business card machine, but instead of taking payments for products or services, it collects donations. The payment is authorised through a secure gateway, and the funds are deposited into the charity’s bank account.
A countertop card machine is ideal for charity shops. These are fixed devices connected to an internet line that collect donations at a specific checkout point.
Yes, many charities use a combination of countertop, portable, and contactless machines according to the nature of their fundraising activities. A charity might use a countertop device in shops and portable machines at events.
