2023 Updates to Blackbaud Payment and Merchant Services

BBMS Rate Change FAQ

• What is changing?
  As we simplify our payment offerings and accelerate innovation, Blackbaud Merchant Services customers will have access to features such as daily disbursements (for all currencies excluding Euro) and Credit Card Updater (for USD and CAD). In conjunction with these latest capability releases, some of our Blackbaud Payment Services rates  —  including card processing, direct debit, PayPal, and interconnect —will change beginning on January 13, 2023. We continue working to bring ongoing enhancements across all markets in compliance with local regulation and user preferences. 
• Is there anything I need to do?
  No, your Blackbaud Payment Services rates will automatically update for transactions beginning January 13, 2023.    
  
• When do the new rates take effect?
  Rates will be updated for Blackbaud Merchant Services, interconnect, direct debit, and PayPal for USD on January 13, 2023.  PayPal rates for CAD, GBP, EUR, and AUD will be effective upon release in November 2022. 
• What are the new Blackbaud Merchant Services rates?

  Currency	New Blackbaud Merchant Services Rate (Jan '23)
  USD	2.5% + $0.30 (+1% for AMEX)
  CAD	2.5% + $0.30 (+1% for AMEX)
  GBP	2.5% + £0.20 (+1% for AMEX)
  EUR	2.5% + €0.20 (+1% for AMEX)
  AUD	Tiered rates based on volume (+1% for AMEX)
  NZD	Tiered rates based on volume (+1% for AMEX)

• What value-add services are included in the new rate?
  Daily disbursements (for all currencies excluding Euro) and Credit Card Updater (for accounts processing in US and Canadian dollars) are available at no additional cost.  For more information, visit resources in the Payments Help Center. 
  
• I don’t currently use Credit Card Updater or daily disbursements.  Will these be turned on automatically on January 13, 2023?
  These features will be made available to your organization without an additional cost in January but will not be turned on automatically.  Should you choose to take advantage of these services, you can opt in from the Blackbaud Merchant Services Web Portal.  For some payment-enabled solutions, you will also need to turn on Credit Card Updater in the product. Please refer to Knowledgebase for specific instructions. 
• I use a third-party merchant provider with the Blackbaud Payment Service. Are my interconnect fees changing?

  The per transaction fee has increased by 0.10; however, the monthly minimum is unchanged.

  Currency	Current Interconnect Fee	New Interconnect Fee
  USD	$0.25/transaction  $25 min. monthly	$0.35/transaction  $25 min. monthly
  CAD	$0.25/transaction  $25 min. monthly	$0.35/transaction  $25 min. monthly
  GBP	£0.20/transaction  20£ min. monthly	£0.30/transaction 20£ min. monthly
  EUR	€0.20/transaction  20€ min. monthly	€0.30/transaction  20€ min. monthly
  AUD	$0.20/transaction  $20 min. monthly	0.20/transaction  $20 min. monthly

• I pay interconnect fees annually. Are those rates changing?

  Yes, for K12 customers paying annually, the rate table will follow the updated interconnect per transaction fees as follows:

  Annual Transactions Tier	Price (USD and CAD)
  1,500	$450
  2,000	$600
  4,000	$1,200
  6,000	$1,800
  8,000	$2,400
  10,000	$2,500
  Over 10,000	Contact Account Executive for pricing

• Why is Blackbaud making these changes?

  While the payments industry continues to impose increasing costs, Blackbaud Payments Services rates have remained constant for many years. With these rate changes, we are working to both remain competitive in the payments industry and streamline globally to a simplified rate structure.
  

  These updates also enable us to provide key innovation in the Digital Giving space. As always, Blackbaud is committed to providing you with modern and innovative tools that help you raise more money to support your mission. To learn more, watch the October Product Update Briefing for Payment Services.

• Do these changes apply to all currencies?

  Yes, Blackbaud is working to streamline globally to a simplified rate structure.

• Do these changes apply to all card types?
  Yes, the new rates apply to all card types, with an additional 1% for American Express. 
• Do these changes apply to PayPal?

  Blackbaud’s PayPal Rates are as follows: 

  Currency	Existing PayPal Rate	New PayPal Rate
  USD	2.8% + $0.26	2.9% + $.30
  CAD	N/A	2.9% + $.30
  GBP	N/A	2.9% + £0.20
  EUR	N/A	2.9% + €0.20
  AUD	N/A	1.1% + $0.29

• Do these changes apply to YourCause®?
  No, YourCause processes through the Blackbaud Giving Fund or international giving partner and is not subject to these changes.
• Do these changes apply to Blackbaud MobilePay Terminal™?
  Yes, MobilePay Terminal transactions will follow the standard rate pricing by currency, where available. 
• Do these changes affect direct debit transaction fees?

  Yes, for currencies where direct debits are accepted, the below rates will apply:

  Currency	Current ACH Direct Debit Rate	New ACH Direct Debit Rate
  USD	$0.75/transaction	1.00% + $0.30/transaction  $5 cap per transaction
  CAD	$1.50/transaction	1.00% + $0.30/transaction  $5 cap per transaction
  GBP	N/A	N/A
  EUR	N/A	N/A
  AUD	N/A	N/A

• Are there changes in how direct debits are processed?
  The returned check fee remains at $5 per occurrence. 
• What does this mean for me? How can I determine if my costs are increasing or decreasing?

  Many factors determine how the rate change will impact your organization, including average gift size, transactional volume, and credit card brand mix.  For help calculating your specific rate impact, contact your Customer Success Manager.

  In addition, Complete Cover™ and donor cover for Blackbaud Raiser’s Edge NXT® and Blackbaud eTapestry® customers offer ways to reduce, or even remove, fees associated with online transactions.  To date, we have put hundreds of thousands of dollars back into our customers’ missions, with over 85% of donors opting in for participating organizations. 

• I’m under contract with fixed rates, do these new published rates apply to me?
  Yes, this applies to your organization as our contracts allow for rate changes. Rates will be updated for Blackbaud Merchant Services, interconnect, direct debit, and PayPal USD on January 13, 2023.  PayPal for CAD, GBP, EUR, and AUD will be effective upon release Q4 2022.  This language is published as part of Blackbaud Payment Service Terms.
• How is this different from the Payment Enablement Fee?
  Blackbaud Merchant Services rates encompass the cost of actually processing a given transaction. The Blackbaud Payment Service Interconnect Fee is designed to encompass the collection, transmission, and storing of credit card data for payment processing with third-party credit card payment gateway service providers and credit card processors. The Payment Enablement Fee helps support the efforts needed to build, maintain, and support secure, compliant, and reliable connections for our customers leveraging payments-enabled solutions.