justgowithit - 5:06 pm on Nov 12, 2009 (gmt 0)

free processing for charitable / Not for profit organizations?

You're not going to find a merchant service provider that will process transactions for free.

Each transaction must be some flat cost to them.

The underlying cost of Visa, MasterCard and Discover bankcard transactions is based on the interchange reimbursement fees for each of the respective card brands. Interchange is expressed as a percentage of the gross transaction value and often a per-transaction charge.

Check out each company's website for their interchange fee schedules. The charge assessed to a credit card transactions depends on which interchange category that it qualifies to. In your case, international transactions and business transactions will qualify to a higher interchange category.

Charity organizations are tough. If it's a well known organization doing significant volume, you should be able to secure an interchange-plus pricing model that will put you several basis points above interchange.