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Amazon Offers Free Online Payment Processing to US Non-Profits

Lori Halley 19 June 2009 5 comments

We’ve talked before about some of the most popular online payment processors suited to smaller non-profits who want to accept donations or sell fundraising products on their websites. Now there’s another payment option you might want to look at: Amazon Payments.

Amazon Payments makes it easy for millions of Amazon customers to donate using the information in their Amazon.com accounts. It offers a range of solutions that enable you to raise money via one-time donations, recurring donations or selling goods for fundraising.

Amazon PaymentsYou must be located in the United States to accept payments with Amazon Payments and Amazon Simple Pay Donations, specifically, are only available to US-based, IRS-certified 501(c)(3) non-profit organizations — but if your organization is eligible for the service, here are two good reasons to think about trying it out:

1. Free Amazon Payments Webinar

NTEN (NonProfit Technology Network) is hosting a free webinar on June 24, presented by the Amazon Payments folks. It's a chance to go right to the source for answers to any questions you have about the service, and for pointers to help you get started using it. 

2. Free Trial Offer

Amazon is offering free payment processing until September 30 for non-profit organizations that start using Amazon Simple Pay Donations (HTML-based buttons for one-time donations) and Checkout by Amazon (simple tools for order management, shipping charges, sales tax, refunds, and cancellations) to accept payments online.

After the trial offer expires, you’ll pay on a per-transaction with no setup fees or on-going monthly charges. Amazon Payments' processing fees and volume discounts are essentially the same as the Paypal and Google Checkout fees — as long as each donation is $10 or more. You can collect donations as small as one dollar with Amazon Payments, but the processing fee for amounts under $10 is a hefty 5.0% + $0.05 for all transactions, regardless of the monthly volume.

Some of the large and small non-profit organizations who accept donations through Amazon Payments include the American Red Cross, Detroit Area Diaper Bank, One Day’s Wages, Louisiana Tech’s Sigma Nu fraternity, and One Laptop per Child — mostly as a second or third payment method, so donors have plenty of choice.

If your organization is already using Amazon Payments, or if you’ve got advice for other non-profits about choosing a payment processor to handle online fundraising, please leave a comment and share your experience?

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Lori Halley [Engaging Apricot]Lori Halley [Engaging Apricot]

Posted by Lori Halley [Engaging Apricot]

Published Friday, 19 June 2009 at 11:59 PM

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Comments

  • Blake Raab

    Blake Raab said:

    Friday, 19 June 2009 at 7:13 PM

    Interesting.  I guess, as you say, it might be good as an alternate option, but with the costs, I'll stick with PayPal.

  • Cliff Kerr

    Cliff Kerr said:

    Wednesday, 24 June 2009 at 6:27 AM

    Will Wild Apricot support the Amazon payment plan the same way it supports Google, Paypal, and Authorize.net?  We are already a participating Amazon associate and this plan would would be a perfect fit as a Wild Apricot widget.

  • Dmitriy Buterin [Chief Apricot]Dmitriy Buterin [Chief Apricot]

    Dmitriy Buterin [Chief Apricot] said:

    Wednesday, 24 June 2009 at 6:36 AM

    There is no specific plan for this yet, I would appreciate if you could post about this on our wishlist so that we can gauge the priority.

  • Lori Halley [Engaging Apricot]Lori Halley [Engaging Apricot]

    Lori Halley [Engaging Apricot] said:

    Wednesday, 24 June 2009 at 6:41 AM

    Blake, I see no reason to shift away from PayPal if that's what your donors are comfortable with - Amazon Payments will suit some organizations as an alternative payment method, but frankly I can't see it replacing PayPal etc. as long as Amazon restricts this service to US-based, IRS-certified 501(c)(3) non-profits only.

  • Joseph Ponnou

    Joseph Ponnou said:

    Wednesday, 24 June 2009 at 9:32 PM

    While this would greatly benefit non-profits orgs outside US also, this approach of opening only to IRS-certified 501(c)(3) non-profit organizations initially makes sense because of potential AML issues that would otherwise arise.

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