Partner Funded Transaction Processing Fee – Replenishment Process (to be shared with Partner )
What is this? A mechanism that allows 100% of Partner’s end user Credit Card donations to go to the designated charity.
How does it work? For Partners that will be covering transaction processing fees, Network for Good will manage the reimbursement/replenishment of transaction processing fees in the following manner
For Credit Card donations
- Partner will prefund an amount equivalent to 2 months of projected transaction processing fees; the “base fee coverage”
- At the beginning of each month, Network for Good will reconcile the previous month’s donations and will deduct the corresponding transaction processing fee from the “base fee coverage”.
- Network for Good will invoice the Partner for the amount deducted from the “base fee coverage”
- Partner will pay out on the invoice bringing the “base fee coverage” back to whole
- Changes - During any given month, if the donation volume is trending high (possibly due to a disaster relief effort, or giving campaign), Network for Good reserves the right to invoice mid-month to ensure there is enough money to cover the fees. Conversely, if the donation volume is lower than expected, the Partner may request for a reduction in the “base coverage fee” (intention should be to keep 2 months’ worth of expected volume in reserve).
- Unused Funds – At the contract close, Partner may request for Network for Good to refund the entire unused amount of the “base fee coverage”
For Batch donations
- On a scheduled (I.e., Monthly or Quarterly) basis, the licensee will submit a batch file on behalf of the Partner
- Network for Good will process the batch file
- Network for Good will invoice the Partner/Licensee for the transaction processing fee associated with the batch, along with the total value of donations in the batch
- Partner will pay out on the invoice
- Network for Good will confirm receipt of payment. The payment confirmation date will be the effective donation date. Once confirmed, donations are eligible for payment to charities on the 15th of the following month.
Receipting: At the request of the Partner, Network for Good can provide a tax receipt for the replenishment of fees. Please notify your account manager during implementation so that this can be arranged and scheduled.
Timing for Setup: Depending on the Partner payment cycle, a minimum of 2-3 weeks should be allowed for the setup from both a technical and accounting standpoint.