Credit cards, by design, have a finite lifespan. Typically, they expire every three to four years, necessitating donors to update their payment information to continue their support . This expiration cycle introduces a natural attrition point, where donors might unintentionally lapse in their giving due to outdated card details.​
CAF

Moreover, the risk of credit card fraud cannot be overlooked. In South Africa, gross fraud losses on credit cards amounted to R426.5 million in 2023, marking a 13.9% increase from the previous year . Such incidents often lead to card replacements, further disrupting recurring donations.​

Additionally, nonprofits with recurring giving programs often lose 15% to 30% of their monthly donations due to expired or declined credit cards or address changes . These challenges underscore the vulnerability of relying solely on credit card donations for sustained support.​

Contrastingly, debit orders offer a more stable and enduring solution. Once established, they continue indefinitely, unaffected by card expirations or replacements. This consistency ensures that nonprofits can rely on a steady stream of income, vital for planning and executing long-term projects.​

At Paysoft Impact, we’ve observed that debit order donors exhibit remarkable commitment. Nearly 90% of our donors opt for indefinite contributions, with an average donation size of R235. Over time, this translates to a lifetime value exceeding R75,000 per donor. Such figures underscore the unmatched potential of debit orders in fostering sustainable giving.

While both methods have their merits, the evidence leans heavily in favor of debit orders for nonprofits aiming for long-term financial stability. Their resilience against common pitfalls associated with credit cards makes them an invaluable tool in the quest for sustainable fundraising.