Tithing at ATM kiosks offer nebulous rewards |
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Work on the system began in the summer of 2004. By the next spring, a system designed on an e-commerce model was placed at Stevens Creek. Essentially, it was a Web site on a kiosk.
"The first year, we received $100,000 on that
unit," says Baker. But the bank fees and associated costs of
doing business prompted a system re-evaluation.
"We took a closer look with an eye toward keeping more money in the ministry," he says. "We decided to offer PIN-secure debit giving and revamped the application into a self-service giving kiosk. It's made a significant difference, in both bank fees and more money for the church."
Forsaking fees
Ah, yes, fees. Even when trying to render unto God, it's impossible
to forget about that portion that goes to Caesar or his agents.
As with purely commercial transactions, each credit
card swipe generates a fee of around 1.9 percent of the amount for
the processing company. There's also a fee of 30 to 35 cents for
running the card through the reader.
So does that mean the church member will see an few extra bucks taken from his or her account when a gift is made at a kiosk, similar to the charges at many secular ATMs? No.
"The church absorbs the fee," says Baker, who adds that although SecureGive is a for-profit company, he doesn't view the fees as a way to make money. "We couldn't survive doing that."
Instead, the bulk of the business's income is from
sales of the machines, which cost between $2,000 and $5,000, depending
upon how the purchaser wants the unit configured. SecureGive also
charges a $50 monthly fee that covers, in part, processing fees
and support services.
But the main reason for creating the company, says Baker, was to find a way to encourage giving and keep more of those gifts in the ministry.
"If you donate $1,000 to your church on a Web
site, it will cost the church $20 to process it. If you donate $1,000
with SecureGive's PIN debit, it will cost the church about a dollar
to process that gift."
The difference? The cost to run a debit transaction
is the interchange rate and a swipe fee, which combined is around
$1 per transaction.
Essentially, the church takes a small hit on kiosk donations. But the givers are happy because the transaction is easy and costs them nothing. Many, in fact, choose to use plastic so that they can more quickly earn airline miles and other card bonuses.
From the church's standpoint, since it eats the fees,
it technically receives slightly less from each e-gift. The trade-off,
however, is that the church likely receives a kiosk contribution
from a member who might not have given that day because he or she
didn't have a checkbook or cash on hand.
Convenience for the cashless
Penny Oates is just such a cashless congregant. A five-year, pre-kiosk member of Stevens Creek, she now gives regularly via the system, drawn by its convenience. "I use my debit card for everything," says Oates. "As we speak, I have no cash in my pocketbook."
Oates also likes the speed of the transaction. After a member initially signs into the system, on each subsequent use he or she simply has to type in an identifying code and donate. "It's a quick transaction, so quick it's literally two minutes," she says. |
