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is-adyen-a-good-choice-for-your-online-payments

Is Adyen the Right Nonprofit Payment Solution for You?

Elodie

Have you ever heard of Adyen? Recently it has been gaining a lot of traction, as it makes a great nonprofit payment solution. Adyen is quickly becoming a force to be reckoned with; it just replaced PayPal as eBay’s default payment processor. Adyen should definitely be on your list of potential gateways if it is not already. Want to know more? You are in the right place! 

We hope you find this information useful in your quest to find the perfect payment processor! 

Let’s go!

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What is Adyen?

Adyen is a payment processing provider that bridges the gap between businesses and their consumers; it handles payment data and finance management. Adyen is omnichannel, which means they allow transactions to take place on a variety of platforms, for example, in-person, on smartphones, and on laptop browsers. They have become the second most popular payment processor on the market.

Created by bankers in 2006, Adyen has grown rapidly for several reasons: they provide instant support in response to queries, fast transaction approvals, and they have very few complaints about both their general practices and sales practices. People have reported that there are no high levels of hidden fees, and their risk management is top tier. They accept payments from cards issued by many major companies, like AMEX and Amazon Pay. 

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Services Offered

In order to fully understand Adyen and what they offer, we have detailed what exactly they do, and how they do it. Let’s get started!

is-adyen-a-good-choice-for-your-online-payments-services-offeredEva is ready to dive in and learn about Adyen!

Mobile Payments

Shoppers are able to pay with mobile devices via a variety of platforms. When they choose to make a payment on your nonprofit website, Adyen will show them their options, and they will choose whichever one is best for them. Adyen supports Google Pay for charities, Amazon Pay, and even buy now, pay later services such as Afterpay and Klarna.

Point of Sale Solution

Literally speaking, your POS system consists of both the hardware and software that allows you to make sales. It accepts payments from shoppers, keeps track of your sales, and works alongside your payment processor to encrypt data. Your in-person card reader and your online storefront are both a part of your nonprofit point of sale.

EMV Card Readers

The days of swiping cards to pay at terminals are slowly phasing out. The mighty microchip has taken center stage with specially designed readers, like this card reader from Square for nonprofits, to enhance security. Counterfeit fraud is much more difficult to commit with a chip reader in place, and they will likely be the main way people pay with cards in the not-so-distant future. 

Reporting and Analytics

Adyen shows you important documentation about your transaction history in a simple and streamlined way. They did substantial research as to how to bring you the best information for each payment method. You can check balances, reconcile payments, and view the details of each payment instrument associated with your merchant account.

Payment Gateways 

Payment gateways are very similar to POS terminals. Examples of this are Stripe, iATS payments, Paypal for nonprofits, Amazon Pay, 2Checkout, and Square for nonprofits. The main purpose served is to actually approve the transaction process between the merchant and customer. It differs from the processor in the way that it marks the opening and closing "gates" of the transaction, opening when it is approved, and closing when it finishes. The payment gateway does not store information, but it runs it through a variety of servers to verify identities and card numbers. 

Virtual Terminals

A virtual terminal is the same as your in-store EMV processor, but it is online, embedded into your virtual merchandise store. It allows users to input sensitive information, and it sends that information to the payment processor via the payment gateway. The virtual terminal is usually a simple interface that is highly user friendly and easy to navigate. 

Card Issuing

Adyen allows you to create and issue your own card program with their unified payment platform. These can be prepaid cards or debit cards, and you can customize them with your branding. They have adjustable card controls built into the management software, and they are always completely transparent about the interchange pricing. 

Fraud and Chargeback Protection

Chargebacks are a common way that buyers steal from businesses. They will purchase a product, request a refund, and then cancel the card as soon as it is en route to the account. Then they tell their bank that the card was stolen, or that the purchase was unauthorized. This means they have one refund on the way, in addition to the card company issuing a second refund. Adyen will automatically defend the chargeback in this instance, and other straightforward situations of fraud. 

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Pros of Using Adyen

Firstly, Adyen accepts payments in multiple currencies, allowing you to accept donations and payments for things like merchandise and memberships from people all over the world, which vastly increases your reach. They also use tokenization, which is an awesome security feature to have within your payment processing. Tokenization is the process of changing each digit of sensitive information into a string of randomized numbers, characters, and letters. It ensures that this sensitive information will never touch your servers, which means that data is even more secure. 

Adyen is trusted by some of the most popular brands in the world, like Netflix, Uber, and Spotify, to name a few. The software is easy to implement, and it makes processing refunds directly back to a customer’s card simple. Refunds can be saved in a PDF file when you need to keep any important transaction information, and the built-in fraud protection is very effective. 

is-adyen-a-good-choice-for-your-online-payments_Simon-prosSimon is loving these Adyen features!

It also allows you to capture delay functionality. This is the specific amount of time between the payment being authorized and the payment being processed. It gives you a little bit of time to assess the legitimacy of a transaction, should you feel as though it is necessary. You can turn this feature off if you wish to speed up transaction times, but there are many circumstances in which it would come in handy. 

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Cons of Using Adyen

Firstly, the dynamics of the app design could use a little work. Many users have reported that there is a lot of room for the app to grow in terms of accessibility. There are a few technical features that require several different login credentials to access; users have found this to be troublesome. Creating a new merchant account with the app can sometimes be a little slow as well, and you will need to have a firm understanding of their pricing system in order to make good use of it. 

The document that outlines pricing models contains several detailed pages, which can be cumbersome to read. Adyen’s standard is to take 3.5% of each transaction; however, that varies quite vastly depending on the payment gateway or card company. The app also does not offer an extensive amount of features to physical storefronts, as it is mainly intended to be an online management system. 

Pro Tip: Adyen is not the best option for low-volume merchants (meaning those who are not processing a large number of transactions), as it has a minimum invoice amount of $120, or 1,000 transactions. 

Users have complained, though infrequently, of occasional outages in the system, bringing up some concerns about reliability. Moreover, the consumer user profiles do not display much information to the merchant, which is likely a safety feature. This information is intended to be relayed primarily through their reporting and analysis features, but if a merchant wants to view their user history with a fine-toothed comb, it might prove to be difficult. 

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Rates & Fees

An interchange rate is a fee that a merchant account will pay for the processing of each debit and credit transaction. There are interchange fees from each of the individual platforms that are required in the process of the transaction, and you usually receive it as a bundle in the bills you receive from your payment processor.  Interchange rates are subject to alteration. They are always based on the costs of actually moving the money, as there are a lot of different moving parts that go into the verification and handling of each transaction. 

When you use Adyen, you will have to pay a configuration of interchange rates based on the payment details and a $.012 processing fee. For example, the fee for Discover is 3.95% + $.012; for Google and Apple Pay, there is no additional interchange charge. An additional $.37, however, is taken out of all ACH transactions.

Pro Tip: Your monthly minimum will be $120, or 1,000 transactions; however, there is no early termination or PCI compliance fee, which is a huge bonus. Many merchants are glad to avoid lengthy contracts, and simply use the service on a month-to-month basis. 

Adyen offers a range of the latest terminals to be used in your storefront, allowing you to lease them. This rate is variable, depending on a variety of different factors that you’ll have to discuss with your Adyen representative. 

is-adyen-a-good-choice-for-your-online-payments-how-does-adyen-compare

How Does Adyen Compare?

The fact that Adyen comes without all the additional monthly fees is a huge benefit. They also offer a free trial, which is relatively scarce in the payment processing sector. Most processors are usage-based, meaning the charges will be incurred per transaction. You will generally see a rate of 1.7% to 3.5% per transaction. Stripe’s fees for nonprofits, for example, are 2.2% + $0.30 per transaction, and that varies. The lack of charge for Apple or Google pay is also a huge plus and helps Adyen to stack that much higher on the list of best payment processors. 

is-adyen-a-good-choice-for-your-online-payments_Emily-comparesEmily is taking stock of how Adyen compares to her current payment solution.

In review, it seems that Adyen is best for large organizations that are not necessarily high risk. They currently have about 3,500 customers, and its global operation means the consumers are making purchases from everywhere. 

is-adyen-a-good-choice-for-your-online-payments-final-thoughts

Final Thoughts

No matter what region of the world your customers hail from - Brazil, the Netherlands, Australia, Lithuania, Hungary, the Czech Republic, Iceland, and beyond - Adyen will help you connect with them. It makes processing online payments a breeze, and in this respect is a particularly good alternative to PayPal for nonprofits (eBay did just ditch PayPal for Adyen after all!). If you aim to process payments in person, and especially online, it may just be the right choice for you! 

is-adyen-a-good-choice-for-your-online-payments-end

Springly is trusted by over 20,000 nonprofits to help them run their organizations on a daily basis. Try it, test it, love it with a 14-day free trial!

 

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