Many payment processors categorize nonprofits as high-risk businesses due to higher chargeback rates, fraud risks, and regulatory concerns. Chargebacks are common in the nonprofit space, as donors may forget they signed up for recurring contributions, dispute charges due to financial misunderstandings, or request refunds for large one-time donations.
Additionally, nonprofits are frequent targets for credit card fraud, with fraudsters using stolen cards to test transactions on donation pages. International donations also pose compliance challenges, as some banks and processors flag large or frequent overseas transactions as potential money laundering risks.
PayCompass specializes in high-risk nonprofit merchant services, meaning we work with nonprofits to prevent chargebacks, minimize fraud, and ensure compliance with financial regulations, allowing your organization to operate smoothly without constant payment disruptions.