{"id":473,"date":"2013-07-02T12:00:43","date_gmt":"2013-07-02T17:00:43","guid":{"rendered":"http:\/\/rdsadvantage.com\/?p=473"},"modified":"2015-09-23T05:47:44","modified_gmt":"2015-09-23T10:47:44","slug":"understanding-creditdebit-card-processing","status":"publish","type":"post","link":"https:\/\/rdsadvantage.com\/v1\/understanding-creditdebit-card-processing\/","title":{"rendered":"Understanding Credit\/Debit Card Processing"},"content":{"rendered":"

Two different types of businesses handle credit\/debit card transactions: Payment Processors<\/em> and Aggregators<\/em>.<\/p>\n

Payment Processors are primary payment gateways. They are the middleman between main processing banks and vendors. RDS chose Vanco because it is a PCI-compliant gateway. More than 12,000 religious and nonprofit organizations nationwide currently rely on Vanco Services to deliver convenient electronic giving options for their donors.<\/p>\n

Aggregators do not do the actual middleman work like a gateway, they are simply the end source on approval or disapproval for payments. A payment aggregator establishes a merchant account and then lets other businesses accept credit card payments and bank transfers on the aggregators account. The payment aggregator facilitates the credit card transaction or bank transfer on behalf of the business. The business is then paid by the aggregator for the completed transactions. PayPal, for example, is a payment aggregator.<\/p>\n

Payment aggregation was established as a means of facilitating micro-payments where the overhead of establishing a merchant account didn’t make business sense.<\/p>\n

The benefits of using an aggregator’s account to facilitate electronic payments include:<\/p>\n

Most aggregators require only simple contact information and rarely require any financial documentation or credit information.<\/p>\n

Most of the time the account can be applied for and set up immediately.<\/p>\n

Most aggregators have identified a niche market and have simplified their system to accommodate their target market. PayPal’s niche is low volume internet businesses that want a simplified payment processing solution for website stores.<\/p>\n

Most aggregators pricing, for facilitating electronic payments, is less expensive than a traditional merchant account for a small volume level. As volumes increase, it generally becomes a no-brainer to switch away from an aggregator when your monthly processing volume is in excess of $5,000 \/ month.<\/p><\/blockquote>\n

Drawbacks of using an aggregator’s account to facilitate electronic payments include:<\/p>\n

Once your monthly volume exceeds a predetermined level, the cost associated with using a payment aggregator’s service is more than a traditional merchant account. When using Paypal, once you exceed $2,000 a month you are usually better off with your own merchant account. Vanco Services guarantees competitive pricing to your current service or any published rates.<\/p>\n

The aggregator determines when payments will be deposited into your bank account. This can be anything from two days to a week or more.<\/p><\/blockquote>\n

ACH transactions are usually priced on a per-transaction fixed cost. The RDS Advantage church management software has provided ACH processing for repetitive payments within its system for many years, and you can continue to use it without cost.<\/p>\n","protected":false},"excerpt":{"rendered":"

Two different types of businesses handle credit\/debit card transactions: Payment Processors and Aggregators. Payment Processors are primary payment gateways. They are the middleman between main processing banks and vendors. RDS chose Vanco because it is a PCI-compliant gateway. More than 12,000 religious and nonprofit organizations nationwide currently rely on Vanco Services to deliver convenient electronic… Continue reading Understanding Credit\/Debit Card Processing<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-473","post","type-post","status-publish","format-standard","hentry","category-blog","entry"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8FugP-7D","jetpack-related-posts":[{"id":457,"url":"https:\/\/rdsadvantage.com\/v1\/receive-gifts-and-payments-electronically\/","url_meta":{"origin":473,"position":0},"title":"Receive Gifts and Payments Electronically","author":"admin","date":"12\/20\/2013","format":false,"excerpt":"Give your members the convenience of on-line contributions and payments. On average, people pay by check for only 5% of their payments. Vanco Services is integrated with your RDS accounting system to automate data entry. People can make debit or credit card and ACH (electronic fund transactions) contributions and payments\u2026","rel":"","context":"In "Blog"","block_context":{"text":"Blog","link":"https:\/\/rdsadvantage.com\/v1\/category\/blog\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":461,"url":"https:\/\/rdsadvantage.com\/v1\/credit-card-processing\/","url_meta":{"origin":473,"position":1},"title":"Credit Card Processing","author":"admin","date":"12\/16\/2013","format":false,"excerpt":"Credit\/Debit Card Application Integrates On-Line Receipts With Accounting As fewer people use checks and more use credit and debit cards, being able to offer the option of credit\/debit card contributions and payments is important for churches and organizations of all sizes. How it Functions: Place a link on your website\u2026","rel":"","context":"In "Blog"","block_context":{"text":"Blog","link":"https:\/\/rdsadvantage.com\/v1\/category\/blog\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":447,"url":"https:\/\/rdsadvantage.com\/v1\/ach-and-creditdebit-card-user\/","url_meta":{"origin":473,"position":2},"title":"ACH and Credit\/Debit Card User","author":"admin","date":"04\/10\/2014","format":false,"excerpt":"From a Fourteen Year User of RDS: After the tornadoes hit Moore, Oklahoma in 2013, we started to receive donations to our disaster relief fund from all over the world. Before this, we did not have a system of online credit card payments, so donors could go to our website\u2026","rel":"","context":"In "Blog"","block_context":{"text":"Blog","link":"https:\/\/rdsadvantage.com\/v1\/category\/blog\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":436,"url":"https:\/\/rdsadvantage.com\/v1\/qr-codes-for-contributions\/","url_meta":{"origin":473,"position":3},"title":"QR Codes For Contributions","author":"admin","date":"08\/02\/2014","format":false,"excerpt":"Your Vanco Services account includes free QR codes. When placed in the bulletin, newsletter or other church communication, your unique QR code gives members with smartphones and tablets instant access to your mobile giving page. The QR code works with any compatible cell phone or tablet. QR code stands for\u2026","rel":"","context":"In "Blog"","block_context":{"text":"Blog","link":"https:\/\/rdsadvantage.com\/v1\/category\/blog\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":455,"url":"https:\/\/rdsadvantage.com\/v1\/nearly-80-of-u-s-noncash-payments-are-now-electronic\/","url_meta":{"origin":473,"position":4},"title":"Nearly 80% of U.S. Noncash Payments Are Now Electronic","author":"admin","date":"01\/08\/2014","format":false,"excerpt":"A study by the Federal Reserve 2009-2010: Electronic payments (those made with cards and by ACH) now collectively exceed three-quarters of all noncash payments while payments by check are now less than one-quarter. The increase in electronic payments and the decline of checks can be attributed to technological and financial\u2026","rel":"","context":"In "Blog"","block_context":{"text":"Blog","link":"https:\/\/rdsadvantage.com\/v1\/category\/blog\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":65,"url":"https:\/\/rdsadvantage.com\/v1\/contributions-by-text\/","url_meta":{"origin":473,"position":5},"title":"Contributions by Text","author":"admin","date":"02\/24\/2015","format":false,"excerpt":"More than 80% of payments in the U.S. are made electronically. Give your members the convenience of electronic giving. Contributions by text is especially easy and convenient. Make it easy for your members to contribute to your church. Use gifts by text and all contributions received are integrated with your\u2026","rel":"","context":"In "News"","block_context":{"text":"News","link":"https:\/\/rdsadvantage.com\/v1\/category\/news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/posts\/473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/comments?post=473"}],"version-history":[{"count":2,"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/posts\/473\/revisions"}],"predecessor-version":[{"id":650,"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/posts\/473\/revisions\/650"}],"wp:attachment":[{"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/media?parent=473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/categories?post=473"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rdsadvantage.com\/v1\/wp-json\/wp\/v2\/tags?post=473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}