Have you ever wondered how to safely transfer money from anywhere in the world directly into your personal account? How can your supporters to donate funds to your cause without you giving out your personal bank account info? It’s easy—using PayPal or WePay, two of the standard payout options offered on YouCaring.
When you connect your fundraiser to your PayPal or WePay account, the company, known as a third-party payment processor, acts as a middleman between your bank and the banks of your donors. All transactions are encrypted, and funds are safely transferred between accounts without the two parties ever exchanging more than an email address. PayPal, in particular, has a reputation for fraud protection that’s second to none.
Due in part to the high volume of funds transferred through fundraising sites, PayPal and WePay’s transaction fees for fundraisers are relatively low, typically around 3% + $0.30 per transaction. Similar fees are charged by services that process credits cards securely. These transaction fees are found on nearly all commercial websites that facilitate payment processing and transfers, including crowdfunding sites.
Since charges for payment processing go directly to third-party processors such as PayPal and WePay (rather than to the crowdfunding site itself), most crowdfunding sites charge fundraisers an additional platform fee—that’s how they make money for themselves. Platform fees often range from 5–10%.
For a more in-depth breakdown read WePay vs PayPal and Which Donation Processor is Right For Your Fundraiser?
At YouCaring, we don’t charge a platform fee—all our operating costs are covered by voluntary donations. This allows us to offer the only free fundraising platform of its kind. And when you connect your fundraiser to your bank account via PayPal or WePay, you can feel secure that all donations to your cause will be processed safely and securely.