Blackbaud payment services are the payment-processing and payment-related fees that sit alongside Blackbaud’s software subscriptions. Blackbaud says its solutions provide payment processing capabilities that let donors make donations and purchase goods and services by credit card and automated clearing house (ACH) transactions.[1] For a software asset manager they matter because they add two cost lines that are not in the software subscription: a fixed payment enablement fee and variable transaction fees. In Blackbaud’s annual report, transactional recurring revenue is described as fees and voluntary donor contributions, to offset processing fees, associated with use of its solutions, including donation processing, tuition management, consumer giving and event-based usage.[1]
Editions and services
| Service | What it is | Catalog row |
|---|---|---|
| Blackbaud Integrated Payments (BBIP) | Lets the customer accept credit card, debit card and ACH payments, including cards bearing Visa, Mastercard, Discover and American Express marks, through a Blackbaud-designated Processor[2] | Blackbaud Integrated Payments, Blackbaud Integrated Payments services |
| Payment enablement fee | A monthly fee, invoiced annually, for customers of payment-enabled solutions; not a processing or transaction fee[3] | Payment enablement fee |
| Fee-cover programmes | Complete Cover and Donor Cover, optional plug-in features that offset processing costs[2] | Alternative Fee-Cover Programs (Complete Cover, Donor Cover) |
| Tuition Management | Platform for K-12 tuition and fee payments with fees paid by families[4] | Tuition Management, Tuition Management family fees |
| JustGiving disbursement | Donations through Blackbaud Peer-to-Peer Fundraising powered by JustGiving are disbursed through the customer’s BBIP account where BBIP is used[2] | JustGiving from Blackbaud |
Metrics
Organizational site ID
The payment enablement fee has its own counting unit. The customer pays one monthly fee per organizational site ID, regardless of how many payment-enabled solutions it has.[3] The fee is a monthly fee, invoiced annually.[3] It applies to all payment-enabled solution customers whether they process payments through BBIP, Blackbaud Payment Service or third-party payment gateways and processors, and even if no payments are currently processed.[3] The fee applies globally.[3] The catalog row is Organizational site ID.
Blackbaud lists the payment-enabled solutions as including Altru, Billing Management, Blackbaud CRM, the Education Management portfolio, Enrollment Management System, School Website System, eTapestry, Guided Fundraising, Internet Solutions, Luminate Online, NetCommunity, Online Express, Raiser’s Edge NXT and Raiser’s Edge, and TeamRaiser.[3] The FAQ says the fee was rolled out in April 2021 and that customers can ask to co-term it to an existing subscription so that the fee and subscription invoices share the same renewal date.[3] The Payments Terms confirm that a customer of a payments-enabled Solution is responsible for paying the payment enablement fee.[2]
A software asset manager should identify the number of site IDs, since one fee applies to each, and whether the payment enablement fee has been co-termed to a solution’s renewal. The documents do not say how site IDs are assigned, so the count should be confirmed with Blackbaud.
Payment transaction
Payment Services Fees apply to all financial transactions conducted through BBIP, including credit card, debit card and ACH transactions, and are as set out in the Fee Schedule or as agreed in writing.[2] Blackbaud’s annual report says customers are charged one rate for credit card transactions.[1] The cited documents do not reproduce the rate, which sits in the Fee Schedule and the customer’s agreement. Fees are set off from processed funds or debited by ACH, and Blackbaud may add or amend Payment Services Fees at any time in its sole discretion, with revised fees applying after 30 days from posting of the revised Fee Schedule.[2] The row is Payment transaction (BBIP).
BBIP for all Solutions currently has a per-Transaction limit of USD 50,000 unless Blackbaud pre-approves otherwise in writing.[2]
Counting and floors
The payment enablement fee has no published amount in the FAQ. The Payments Terms state that all payments are non-refundable and that fees are exclusive of taxes unless provided otherwise.[2] Customers must notify Blackbaud in writing of any error in a statement within 30 days of receiving the first statement or payment that contains it, or the error is accepted and any claim waived.[2] Transactions are processed by the Processor, not Blackbaud, and Processor settles proceeds to the customer’s bank account, possibly through a pooled account.[2]
Fee-cover programmes
Alternative Fee-Cover Programs, namely Complete Cover and Donor Cover, are optional and available only for select fundraising and engagement Solutions.[2] With Complete Cover, Blackbaud accepts responsibility for processing fees up to a Coverage Maximum of USD 3,000, or the equivalent in the BBIP account currency; the customer is solely responsible for standard fees above that amount, and an amount given by a donor through Complete Cover is retained by Blackbaud, is not a charitable donation, and results in a bifurcated receipt.[2] With Donor Cover the additional amounts are retained by the customer.[2] Blackbaud may modify, suspend or discontinue the programmes at any time in its sole discretion.[2] The cover maximum creates a cost exposure that finance teams should track against actual fee volumes.
Virtualization and partitioning
Not applicable to payment services. The relevant restrictions are on use: the customer must use Payment Services only for its legitimate business purposes, may not use them for load testing, and may not sell or provide any portion of Payment Services to any third party.[2] The customer must also maintain compliance with PCI-DSS and the card network rules.[2]
Cloud and bring-your-own-licence
Payment services are provided through Blackbaud’s designated Processor. Blackbaud may suspend, modify or terminate its relationship with any Processor in its sole discretion and, if it replaces the Processor, the customer may be required to accept new or additional terms.[2] The Payments Terms are part of the Solutions Agreement and prevail over it, to the extent of a conflict, for Payment Services.[2] Customers may instead connect third-party gateways, in which case the payment enablement fee still applies.[3]
Programs
| Program | Catalog row | Notes |
|---|---|---|
| Payment enablement fee | Payment enablement fee | Monthly, invoiced annually, per site ID[3] |
| BBIP services | Blackbaud Integrated Payments services | Fee Schedule; 30-day change; USD 50,000 limit[2] |
| Fee-cover | Alternative Fee-Cover Programs (Complete Cover, Donor Cover) | Complete Cover maximum USD 3,000[2] |
| Tuition Management family fees | Tuition Management family fees | Wire USD 15.00; follow-up USD 40.00; returned payment USD 30.00[4] |
For Tuition Management, the family-facing fees are published: a wire payment fee of USD 15.00, a follow-up fee of USD 40.00 for past-due accounts, and a fee of USD 30.00 for each failed ACH or returned check, plus an administrative fee and a platform fee that vary with the payment.[4] These fees are paid by families, not schools, but schools choose which payment methods to accept.[4]
Compliance and risk
Under the Payments Terms the customer is responsible for chargebacks, refunds, identity theft, fraud and assessments imposed by the Processor or card networks, and for determining and remitting any taxes on its own sales.[2] Blackbaud may require a reserve account, after reasonable prior written notice, to satisfy any delinquent obligation under any agreement with Blackbaud, and funds in it may be set off against amounts otherwise payable.[2] Blackbaud or the Processor may report transactions to tax authorities, for example on Form 1099-K.[2]
Out of scope
This article does not give processing rates because the Fee Schedule is not reproduced in the cited documents. It does not cover consumer-facing fees on JustGiving, which are governed by separate JustGiving terms, or Blackbaud’s data-security incident matters.