Nonprofits
Card and ACH donations inside your fundraising software
Payment processing for fundraising software lets donors give by credit card or through ACH bank payments without leaving your platform, including monthly bank gifts your software schedules under the ACH authorization rules. BrainMerchant processes card and ACH payments for software platforms.
Northwind Food BankMonthly donation
Gift amount$50.00
- Pay by bankACH from a checking or savings account
- Pay by cardCredit card
Give $50.00 by bank each month
Card and ACH payments processed by BrainMerchant
Ways to give
Giving flows your software supports
Donors give in more than one way, and card and ACH each fit some gifts better than others.
One-time online gifts
A single gift from a donation page or an appeal. Card gives the donor an answer in seconds; a bank payment suits a larger gift from a donor who would rather not use a card.
Monthly recurring gifts
A set amount, every month. By bank, these are ACH debits your software schedules, with the authorization the rules require. For card, ask us how repeat card payments would work.
Event tickets and registrations
Galas, charity runs and dinners sell a fixed number of places for a set date. Card fits best, because the buyer gets an approval or decline before the ticket is issued; a bank payment gives no instant answer, and a failed one shows up as a return days later.
Membership dues
Yearly or monthly dues for members, friends groups and associations. Bank payments suit dues collected on a schedule; card suits members who want to pay once at checkout.
Pledges paid in installments
A donor commits to a total and pays it over several months. Scheduled bank debits fit well, under the same authorization rules as monthly gifts.
Church and congregation giving
Church management software payments often split two ways: regular tithes suit scheduled bank gifts, and card suits one-time offerings and special appeals.
Recurring giving
Monthly gifts by ACH
Recurring donations by ACH are debits from the donor’s bank account on a schedule your software sets. As of October 2026, federal Regulation E requires recurring debits from a consumer account to be authorized in writing, signed or similarly authenticated by the donor, and the donor must get a copy.
WEB is the code for debits a consumer authorizes online, such as a gift made on a donation page. Whoever originates a WEB debit must validate the account the first time they use an account number and whenever the number changes. Our guide to ACH authorization requirements explains what an authorization needs.
- Send a copy. The donor gets a copy of the authorization for each monthly gift they set up.
- Respect a revoked authorization. A debit sent after the donor revokes it can come back as R07, which counts toward Nacha’s 0.5% unauthorized return threshold.
- Expect late returns. Donors can have their bank return unauthorized debits from consumer accounts for 60 calendar days after the settlement date.
- Update closed accounts. A gift from a closed account comes back as R02; ask the donor for new account details instead of retrying.
Monthly bank giftACH Network
- AuthorizeThe donor authorizes the monthly gift
- OriginateThe entry is sent in a batch
- SettleFunds move between banks
- Return windowMost returns arrive within two banking days
Card vs ACH
Card or bank for donations
When you plan payment processing for nonprofit software, the choice between card and bank shapes cost, timing and disputes. The figures and rules below are general, as of October 2026.
| Question | Card | ACH |
|---|---|---|
| Cost benchmark (AFP 2022, business payments) | 2.0% to 2.5% of the payment, for a business receiving a credit card payment | $0.25 to $0.50 per payment, for both the sender and the receiver |
| Answer at checkout | Approved or declined in seconds | No instant answer; entries are sent in batches |
| How failures show up | A decline at checkout | A return, days after the gift was submitted |
| Dispute window | Visa: generally 120 days, up to 540 days in some cases | Unauthorized consumer debits: 60 calendar days; business accounts: two banking days |
| Best fit | One-time gifts and event tickets | Monthly bank gifts and pledges |
Rules to know
Two rules donation platforms often miss
Donation processing for nonprofit platforms runs into two rules worth checking before you build: the ACH Company Entry Description and the card networks’ rules for platforms. Both are stated as of October 2026.
The Company Entry Description
Since March 20, 2026, consumer WEB debits for online purchases of tangible goods must use the Company Entry Description PURCHASE. A donation is not a purchase of goods, so ask your provider which description your platform should send for gifts.
Your platform’s payment model
Card networks set specific rules for platforms that handle funds for others. Visa’s marketplace model is narrowly defined and excludes some merchant types, including charitable social service organizations, a category Visa says includes crowdfunding merchants. Know which model fits before you design how gifts move through your software.
FAQ
Questions about payment processing for fundraising software
Short answers as of October 2026. Payment rules change, so confirm details with your provider or the rule source.
Can donors give by card and by bank?
Card gifts follow the card network rules. Bank gifts need an authorization under the ACH rules. BrainMerchant processes card and ACH payments for software platforms; tell us about your donation flows. For the card side, see credit card processing for platforms.
What do the ACH rules require for monthly bank gifts?
Monthly gifts, pledges paid in installments and regular tithes by bank are all recurring debits. From a consumer account, each needs the donor’s authorization in writing, signed or similarly authenticated, and the donor gets a copy. Your software sets the schedule; talk to us about how scheduled gifts would work with BrainMerchant.
Can a donor reverse an ACH gift?
Not through a chargeback, which is a card process. Instead, a donor can have their bank return a debit from a consumer account that they did not authorize, or one sent after they revoked the authorization, for 60 calendar days after the settlement date. The return uses a code such as R10 or R07 and a Written Statement of Unauthorized Debit from the donor. For business accounts, the unauthorized return window is two banking days. See how ACH return codes work.
How long do card donors have to dispute a gift?
Under Visa’s rules as of October 2026, the donor’s card issuer generally must process a dispute within 120 calendar days of the transaction processing date. For some disputes about something delivered later, such as an event ticket, the clock can run from the date the donor expected it, but never beyond 540 calendar days from processing. Separately, the Fair Credit Billing Act gives a consumer 60 days after the statement to send a billing-error notice. Each card network sets its own limits, so confirm them with your provider.
Talk to BrainMerchant
Make giving by card or bank simple in your software
Tell us how donors give on your platform today, from one-time gifts to monthly bank gifts. We’ll walk you through what card and ACH processing with BrainMerchant looks like.