Today, raising funds (or doing any kind of financial transaction online) requires a third party that can securely process payments from a wide variety of payment methods, including credit cards. Companies known as payment processors allow money to be safely transferred across the Internet. For their services, they charge a small fee per transaction.
YouCaring offers you a choice of two donation processors: WePay and PayPal. Both charge the same fee: 2.9% plus $0.30 per transaction. These fees are deducted from each donation, with the remainder going to your fundraiser. For example, if someone donates $100, PayPal or WePay takes $3.20 to securely process the transaction. (Note that these funds go directly to the processor. At YouCaring, we don’t charge any other fees—all our operating costs are covered by voluntary donations.)
With nearly a billion dollars raised on YouCaring, we’ve seen the ins and outs of each donation processor. What have we learned?
A key factor in your choice is where most of your donors are—are they foreign or domestic? If you expect to receive a large volume of donations from outside the US, PayPal may be the better choice. PayPal enjoys great popularity internationally, especially in places where traditional banking is less reliable.
Your own location also matters: WePay can distribute payments only to individuals and organizations located in the US.
However, If you’re fundraising only in the US and choose WePay, you could see a significant boost in credit card donations. With WePay, up to 50% more people who start making a donation finish the process, compared to fundraisers who use PayPal.
Given that everyone’s needs are different, we’ve summarized the benefits of each donation processor below, so you have the information you need to make the best selection for your fundraiser.
- The only option if you want the funds you raise to be disbursed as a check.
- A simple, easy process for making donations by credit card—with no need to create a WePay account, which results in significantly fewer people abandoning the donation process.
- WePay accepts donations made via all major international debit and credit cards, and via electronic bank transfers—but can send funds raised only to individuals and organizations in the US.
Learn more at WePay.com.
- PayPal is the only option if you or your organization are located outside the US.
- You can accept and send payments anywhere in the world. Popular outside the US.
- PayPal accepts donations made via debit or credit cards, PayPal accounts, or PayPal Credit (an instant line of credit).
- You can access donations quickly because deposits are made available right away.
- If PayPal requires a donor to create a new user account, it can take five days to confirm and activate the account before funds are transferred to you.
Get more details at PayPal.com.
Switching Donation Processors
Don’t worry—if you choose one donation processor and later feel you made a mistake, you can change your processor at any time during your fundraising campaign. Simply email [email protected]oucaring.com with your request and include the link to your fundraising page. Our customer service team will help you make the switch.
To learn more about how to raise money online, read our How Crowdfunding Works page.