I like it! Good job finding a small one-time change that would add up to a big difference over time.
Visa, PayPal, and some others already have discounted credit card processing rates for charities. How do you plan to respond to a boilerplate reply saying they’re already providing a discount for charities? I’m concerned that the existing nominal discount will “check the box” for some people that the credit card processing companies “care”.
Do you have a plan for negotiating if you get an interested response? In my limited experience with vendor pricing negotiations at work, counterparties are usually more amenable to a narrowly limited ask that demonstrates you understand the value they are providing. “Can I get a discount on the oversize box fee?” or “Can I get a discount on these 7 standard items?” are easier to say yes to than changing a whole category multiplier, where they would have to actually do the math.
This might look like asking for
transaction fees to be waived on only Giving Tuesday
a specific, deeper discount that still covers their expenses for providing the service
a fee rebate program that could be. implemented separately from their payment processing
Also, if you target multiple processors, you might be able to play them against each other.
The honest answer is that we are not approaching this project anticipating that it will end in a negotiation with VISA. My assumption (could very well be flawed as this is our first social media campaign) was that VISA would either change the fee or not, without negotiating externally. You may very well be right though so thank you for offering these tips, it’s greatly appreciated!
The aim in targeting one processor was to maximize the pressure on a single company vs spreading ourselves thin across multiple.
I like it! Good job finding a small one-time change that would add up to a big difference over time.
Visa, PayPal, and some others already have discounted credit card processing rates for charities. How do you plan to respond to a boilerplate reply saying they’re already providing a discount for charities? I’m concerned that the existing nominal discount will “check the box” for some people that the credit card processing companies “care”.
Do you have a plan for negotiating if you get an interested response? In my limited experience with vendor pricing negotiations at work, counterparties are usually more amenable to a narrowly limited ask that demonstrates you understand the value they are providing. “Can I get a discount on the oversize box fee?” or “Can I get a discount on these 7 standard items?” are easier to say yes to than changing a whole category multiplier, where they would have to actually do the math.
This might look like asking for
transaction fees to be waived on only Giving Tuesday
a specific, deeper discount that still covers their expenses for providing the service
a fee rebate program that could be. implemented separately from their payment processing
Also, if you target multiple processors, you might be able to play them against each other.
Good luck!
Thanks so much for your question Cienna!
The honest answer is that we are not approaching this project anticipating that it will end in a negotiation with VISA. My assumption (could very well be flawed as this is our first social media campaign) was that VISA would either change the fee or not, without negotiating externally. You may very well be right though so thank you for offering these tips, it’s greatly appreciated!
The aim in targeting one processor was to maximize the pressure on a single company vs spreading ourselves thin across multiple.
Thanks again!