Overview of Payment Processing for Churches

In your scenario, Ministry Brands acts as a payment facilitator for churches offering online giving platforms. Let's break down how the payment process works for churches in this context.

Key Terms:

• Merchant: The church is considered the merchant in the payment transaction, meaning they are the entity that receives the donation or payment.

• Payment Facilitator (PayFac): Ministry Brands is the intermediary that processes payments for the church. As a PayFac, Ministry Brands handles the transactions between the donors and the church.

• Credit Card Processing: This involves handling transactions where a donor uses a credit or debit card to make a payment.

• ACH Payments: This refers to payments made via the Automated Clearing House (ACH) network, a way of transferring funds electronically between bank accounts (e.g., from a donor's bank account to the church).

• Card-Not-Present (CNP): The payments are made online, meaning the donor's physical card is not present during the transaction, typically involving more risk and a slightly higher fee than card-present transactions.

  

Ministry Brands Amplify Payment Structure:

• 2.75% for Credit Card Payments: For every donation or payment made via a credit card, 2.75% of the transaction is taken as a fee.
• 1% for ACH Payments: For ACH transfers, a lower fee of 1% is charged due to lower processing costs.
• $0.42 Per Transaction Fee: This is a flat fee applied to every transaction, regardless of the amount or payment type.

How Payment Processing Works:

1. Donor Initiates a Payment: The donor enters their credit card or bank information on the church's online giving page.
2. Ministry Brands as Payment Facilitator: Ministry Brands facilitates the transaction. As the PayFac, Ministry Brands manages the entire payment processing flow, making it easy for churches to accept payments without having to deal with the complex setup and compliance that traditional merchants would face.
3. Payment Authorization: The donor's payment information is sent to Ministry Brands, which communicates with the credit card networks (Visa, MasterCard, etc.) or ACH network for authorization.
4. Fund Transfer: Once the payment is authorized, the funds are transferred from the donor's bank account to Ministry Brands, and then to the church's designated account after deducting fees. Credit card payments typically settle within 2 business days, while ACH transfers may take 3-5 business days to complete.
5. Fee Deduction: For a $100 donation via credit card:
   • 3.00% of $100 = $2.75 fee
   • $0.42 per transaction fee
   • For ACH, the process is the same, but the fee would be 1%, making it cheaper for larger donations.

Benefits of Working with Ministry Brands vs. Stripe, Banks, or Heartland: