How AMR Helped a Client Cut Credit Card Fees in Half

For many associations, credit card processing fees are a necessary but frustrating expense. While members often appreciate the convenience of paying by card, the organization is left absorbing the costs. With the overall cost of doing business skyrocketing, credit card fees are also going up because associations have to charge more to cover expenses.

One of AMR’s clients recently tackled this challenge with guidance from the AMR team, and the results speak for themselves: a reduction in credit card processing fees by more than half. By working with AMR to rethink how payment costs were handled, the organization implemented a simple, member-friendly change that dramatically reduced expenses without sacrificing convenience.

The Strategy: Adding a Flat-Rate Processing Fee

The organization added a simple field to its forms asking how members plan to pay. Those who choose to pay by credit card are automatically charged a flat-rate fee, loosely based on 3%, to help offset processing costs.

While these fees do increase the overall amount assessed by the processor, the added revenue from the flat-rate fee significantly offsets the organization’s expense.

How It Works in Practice

• Members self-identify their payment method when completing a form.
• A flat fee is applied if they choose credit card as their payment option.
• Fee offsets are tracked in the organization’s general ledger by coding this portion of the revenue directly to the credit card fee expense account.

This approach not only makes the costs more transparent but also aligns the expense with its true source.

The Results: A 58% Savings

By implementing this simple change, this AMR client has seen its credit card processing fees reduced by more than half from 2022 pre-processing fee to 2024 once it was fully implemented across most forms. That is money that can now be redirected to member services, programs, and initiatives instead of going to a credit card processor.

Why It Works

1. Cost-sharing: Members who choose the convenience of credit cards help cover the expense of that convenience.
2. Transparency: Members clearly see the fee at the time of payment, which minimizes confusion.
3. Efficiency: Offsets are automatically tracked in the accounting system, simplifying financial reporting.

Additional Tips and Resources

Credit cards are not the only payment option available to associations, and in many cases, alternatives like ACH payments can significantly reduce transaction costs. ACH fees are typically a flat amount per transaction and are often far lower than percentage-based credit card fees, making them a cost-effective option for dues, event registrations, and recurring payments. For organizations collecting online payments, it is also important to understand how processing fees should be recorded and reported correctly. Resources like How to Account for Credit Card Fees When Collecting Online Donations from DonorSnap and How to Avoid the Hidden Fees Costing Your Nonprofit from CharityEngine offer helpful guidance on fee transparency, accounting treatment, and strategies to minimize unnecessary costs.

A Model for Other Associations

Credit card fees can be a hidden drain on association budgets, but this client’s experience shows there are smart, member-friendly ways to reduce the impact. By introducing a small, predictable fee and capturing it correctly in the ledger, associations can take back control of their finances while continuing to offer payment flexibility to members.

Contact AMR today to see how we can help your association change the world.