Topic: Electronic Acceptance and Payment of Funds
The Rotary District 6250 District Governor line has received numerous requests to help the clubs move towards electronic acceptance and payment of funds.
There are two distinct categories driving these funding needs:
- Payment for traditional and recurring club activities such as dues, events and other related functions
- Payment for “Happy/Sad Dollars” and other programs used within your Club to raise money
Read more for suggestions on Traditional/Mainstream Options as well as Newer Options
Suggestions:
Traditional / Mainstream Options:
Any time money is involved, our best advice is to start with your local bank. If your bank isn’t aware of potential services or have a suggestion, the following is a list of options that have been used successfully for many years.
For acceptance of payments via credit card or other services, the following are good options:
- If you club uses Clubrunner, take a look at its built in payment module - https://site.clubrunner.ca/Page/online-payment-and-ecommerce-us
Notes: While Clubrunner's fees are a bit higher, their customer service and simplicity make it the easiest option for clubs to roll out if your club already has Clubrunner.
- Stripe - https://stripe.com
Notes: Stripe doesn't charge monthly fees and can accept payments from a web-module they setup for you.
- Square - https://squareup.com
Notes: Square sits in the middle, and it allows you to accept payments from any card.
- Bill.com - https://www.bill.com
Notes: Bill.com allows for ACH/Direct Deposits. This solution provides a more integrated and formal option to the automation of payment processes.
Newer Options:
Zelle (https://www.zellepay.com) and Venmo (https://venmo.com) are two newer entrants into this field. The following link will take you to an article which provides a good current breakdown of the pros and cons of each service.
https://www.nerdwallet.com/blog/banking/peer-to-peer-p2p-money-transfers/
https://www.nerdwallet.com/blog/banking/peer-to-peer-p2p-money-transfers/
Zelle is a service developed in a partnership by many of the major banks, including many banks located in Wisconsin. Zelle offers a service almost identical to Venmo with a few caveats.
- Zelle allows for instant transfers whereas Venmo payouts can take 1-3 days.
- Zelle requires that your bank be a partner with Zelle Network, whereas Venmo can make payments to any bank account with a valid routing number.
- Zelle only accepts debit and direct bank transfers, not credit cards (which is how it can bypass most fees).
There are downsides to these newer payment options such as Zelle and Venmo. A few key risks are that neither services’ transactions are protected by the FDIC or other banking institutions. Both these products are designed and marketed toward transactions from individuals to individuals. While this helps eliminate fees with credit and debit cards, it also eliminates many of the protections and services normally provided by banks, a risk people may or may not be willing to incur to reduce fees.
Implementation:
If you/your club would like to move forward with electronic payments and would like advice, we are available to help.
Dick Spencer, District 6250 Treasurer
Email: Dspencer6250@gmail.com
Phone: 608-783-2448
Todd Restel, District 6250 Finance Chair
Email: trestel@1supply.com
Phone: 608-790-5134