Check please...
Exploring fundraising options in Nash and Ireland's, Winning Campaigns Online, I have come to learn the importance and value of the innovation of online checks.
I am a huge fan of credit cards, ATM machines, and online banking, I was surprised to learn in Nash and Ireland's chapter on "Choosing a Fundraising System" that most people do not have credit cards or have maxed out on the credit line.
"VISA and Mastercard report that only 60-65% of U.S. adult consumers actually have a major credit card...In fact over 85% of all credit card holders are "revolvers" who are unable to pay off their balance each month and thereby incur revolving annual finance charges of up to 18% and more. "
Nash and Ireland point out because of this fact, donating online by check is a less expensive option for donors to contribute without accumulating those pesky interest rates from credit cards.
The book also maps out some other advantages of donating via online check. Online checks will not get pushed aside on a donor's "to-do" list, nor will it get lost in the mail. Checks will go directly into the campaign account, online checks are cheaper to send and to process as time is saved by staff who do not have to enter the information like they would a paper check.
Having a campaign website with an option to contribute via online checks is a wonderful idea with many benefits both for the donor and staff. However, I wonder how if people are more likely, less likely, or indifferent to giving out their checking account information over the Internet vs. giving their credit card information over the Internet?
I am a huge fan of credit cards, ATM machines, and online banking, I was surprised to learn in Nash and Ireland's chapter on "Choosing a Fundraising System" that most people do not have credit cards or have maxed out on the credit line.
"VISA and Mastercard report that only 60-65% of U.S. adult consumers actually have a major credit card...In fact over 85% of all credit card holders are "revolvers" who are unable to pay off their balance each month and thereby incur revolving annual finance charges of up to 18% and more. "
Nash and Ireland point out because of this fact, donating online by check is a less expensive option for donors to contribute without accumulating those pesky interest rates from credit cards.
The book also maps out some other advantages of donating via online check. Online checks will not get pushed aside on a donor's "to-do" list, nor will it get lost in the mail. Checks will go directly into the campaign account, online checks are cheaper to send and to process as time is saved by staff who do not have to enter the information like they would a paper check.
Having a campaign website with an option to contribute via online checks is a wonderful idea with many benefits both for the donor and staff. However, I wonder how if people are more likely, less likely, or indifferent to giving out their checking account information over the Internet vs. giving their credit card information over the Internet?
2 Comments:
I'd have to imagine the unfamiliarity factor is one of the biggest hurdles to widespread on-line check adoption. I know that I haven't even seen an on-line check checkout (though I'm hardly a regular political donor), so I'd be curious as to what is required. I assume it's similar to the info needed to set up direct deposit for a paycheck (routing and account numbers), in which case the growing use of direct deposit will probably help people understand what the hell a routing number is in the first place.
Political checks are easy to understand, especially if the format is made so that it looks like a regular check - enter the date where you would on a check, enter the routing number where it appears on the check. Comcast does it like this.
There are some pros to credit cards, however. In working for some non profits, I found that some people are more likely to give more with a credit card - probably because they are not seeing the balance in their checkbook.
I am more likely to donate immediately with a credit card because I don't have to pull out and balance my checkbook, which I prefer to do at the end of the month.
Also, I do feel more secure about giving with a credit card - if some hack gets your bank account number, that cash is gone until you can prove fraud, which takes forever. However, you can refuse to pay your credit card bill if you believe there has been fraud.
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