TL;DR
Digital payment processing fees reduce the amount churches can put toward ministry. However, churches can reduce these fees by encouraging cost-efficient methods like recurring ACH giving and offering a “cover the fee” option. These small changes can lead to significant savings—allowing more money to support outreach, missions, and community efforts. OnlineGiving.org provides tools and strategies to help your church minimize costs and maximize ministry impact.
The High Cost of Payment Processing
Churches across the U.S. collectively forfeit tens of millions of dollars each year to digital payment fees. Every dollar lost in fees is one less dollar available for vital ministry initiatives like feeding families, supporting missionaries, or community outreach.
The good news? There are practical steps churches can take to reduce these fees and empower their donors to make every gift go further.
Why Covering Transaction Fees Matters
While payment processor rates vary by provider and transaction type, churches can typically expect higher fees for credit card donations compared to electronic bank transfers (ACH). To illustrate:
- Credit card transactions often include percentage-based fees plus a per-transaction charge.
- ACH bank transfers usually come with significantly lower costs.
To offer perspective:
- A small church receiving $500,000 in annual digital giving might see several thousand dollars lost in fees.
- A larger church processing $2 million annually may forfeit tens of thousands.
- A mega-church bringing in $10 million or more might lose a substantial sum if not optimizing giving methods.
Redirecting these funds toward ministry rather than fees can create a powerful impact—from hiring staff to expanding outreach.
Proven Strategies to Reduce Giving Fees
1. Promote Recurring ACH Giving
Recurring ACH donations are among the most efficient ways to receive contributions. Compared to card-based gifts, ACH gifts can lower processing fees substantially.
Consider this scenario:
- Shifting $100,000 in monthly giving from credit cards to ACH could reduce processing costs by several thousand dollars annually.
- That’s money that could be redirected toward new ministries, facility improvements, or increased staff support.
OnlineGiving.org makes it simple to prioritize ACH by featuring it prominently on donation forms and encouraging recurring gifts with just a few clicks.
2. Offer a “Cover the Fee” Option
Many donors want to ensure their full gift goes toward the cause they care about. By enabling a "Cover the Fee" checkbox, churches empower givers to include the transaction cost with their donation.
With OnlineGiving.org:
- Donors can see the fee and easily opt to cover it.
- Churches can include helpful messages like:
“To reduce processing fees, consider using a bank account instead of a credit card.”
In one church’s case, over 60% of recurring givers chose to cover fees—resulting in thousands saved annually.
Tip: The “cover the fee” amount can also be tracked separately in reporting when integrated with systems like Salesforce and Planning Center, giving administrators clear insights into donor-supported savings.
3. Educate Your Congregation
When donors understand how fees work, they’re often eager to help minimize them. Clear communication builds trust and encourages smarter giving decisions.
Use church bulletins, newsletters, and in-service announcements to:
- Explain the cost difference between ACH and card-based giving.
- Encourage recurring donations.
- Highlight the “cover the fee” option.
- Show real examples of how small savings add up to big ministry impact.
Small Adjustments, Big Ministry Impact
Every dollar saved from processing fees can be redirected to Kingdom work:
- $10,000 saved could fund a year of youth programs.
- $50,000 could support a mission team or feed hundreds of families.
- $250,000 could build new outreach facilities or launch a satellite campus.
Minimizing fees isn’t just about saving money—it’s about multiplying ministry.
Let OnlineGiving.org Help You Do More with Every Gift
At OnlineGiving.org, we help churches stretch their resources further. Whether it's setting up cost-saving features like ACH optimization, enabling "cover the fee," or helping you communicate with your donors, we’re here to make every dollar count.
Call us at (615) 206-4000 or email support@onlinegiving.org to get started with a free demo.
Let’s reduce costs and do more ministry—together.
The Stewardship Coach
Good news, church leaders! You can turn each dollar of donations into more ministry impact by reducing transaction fees. Discover simple strategies to save more and do more for the Kingdom.https://t.co/vkCgO0sW1C pic.twitter.com/ZcTJpqRnr6
— Online Giving (@onlinegivingorg) January 17, 2025
