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Ask a question. Give advice. Share resources. Looking for software or hardware recommendations? Want to know how others are using text messaging in their work? Trying to find examples of IT policies? The NTEN Discuss forum is a great resource for all of the above and more! It's the general discussion list for the NTEN community, and folks all over the US (and the world) are sharing their questions, answers, and news about nonprofit technology.

Swiping credit cards instead of using Chip card reader

  • 1.  Swiping credit cards instead of using Chip card reader

    Posted Nov 01, 2017 12:07
    Is anyone still swiping credit cards instead of using chip card readers? Why? Did you find that the benefits (not paying $50 or $79 per reader) outweighed the risks? Let me know your reasoning.  I am referring to the mobile payment type like Square or PayPal Here.

    The backstory: We act as fiscal agents for neighborhood groups that raise funds for their parks. They are increasingly wanting to use PayPal because the fees are lower than our DonorPerfect system. They use the card readers at events like festivals, bake sales, and yard sales. I want the transaction to be more secure, but even for just a couple, it is a not small investment. Right now the usage is a couple of times a year by various groups.

    Marlina

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    Marlina McKay
    Manager of IT
    Park Pride
    Atlanta, GA
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    2020 Nonprofit Technology Conference Logo  w/ Baltimore Skyline


  • 2.  RE: Swiping credit cards instead of using Chip card reader

    Posted Nov 02, 2017 00:31
    You'll be required to upgrade to chip readers by 2019 I believe. If you have the foresight and bandwidth now, I'd recommend finding a way to slowly fold them in that way it's not as expensive a bite in the long run.

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    Joshua Allen
    Looking for a new opportunity...
    Seattle, WA
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    2020 Nonprofit Technology Conference Logo  w/ Baltimore Skyline


  • 3.  RE: Swiping credit cards instead of using Chip card reader

    Posted Nov 02, 2017 08:47
    I'll give you a very cynical answer: you can afford to take on a lot of risk if you have nothing to lose. Charities with no assets may not see a benefit in the cost-benefit analysis of spending money on chip readers. However, as the fiscal agent, you probably want to insist that your sponsees are in compliance. But I'm hearing some dissonance here:

    How can it be that the nonprofits are saying the $50-80 cost is too high given their very low transaction volume, but also that the 1-2% points that Donor Perfect charges more than PayPal is also too high? If you have no volume, paying another 1-2% doesn't add up to much. Seems to me like the tail wagging the dog here. I would set a policy requiring chip readers, and then observe the behavior that follows.

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    Isaac Shalev
    http://www.sage70.com
    Stamford CT
    @Sage70
    isaac@sage70.com
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    2020 Nonprofit Technology Conference Logo  w/ Baltimore Skyline


  • 4.  RE: Swiping credit cards instead of using Chip card reader

    Posted Nov 09, 2017 16:40
    Thanks for your responses. I like to err on the side of caution, but I am trying to understand the logic behind not wanting to use the chip reader.

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    Marlina McKay
    Manager of IT
    Park Pride
    Atlanta, GA
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    2020 Nonprofit Technology Conference Logo  w/ Baltimore Skyline


  • 5.  RE: Swiping credit cards instead of using Chip card reader

    Posted Jan 25, 2018 18:47
    Our organization is still using credit card swipers. We tried updating to chip card readers last spring ahead of our annual member conference, but ran into configuration issues implementing the model supported from our current payment processor. At the time it was more trouble than it was worth; it will be revisited this fall as part of a larger tech project as we're likely switching payment processors.

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    Stephanie Henyard
    Information Technology
    Society for College and University Planning
    www.scup.org
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