Blackbaud Merchant Services Reviews & Complaints

Blackbaud Logo
4.5
full star full star full star full star empty star

How did they treat you? ▼

Pros & Cons
Pros: Cons:
Easy donation forms setup. Customer support can vary.
Integrated with Blackbaud solutions. Limited to Blackbaud software.
Secure, PCI-compliant processing. Potentially higher overall costs.
Competitive transaction fees. Limited merchant account flexibility.
Real-time reporting features. Contract terms may be restrictive.
Dedicated nonprofit focus. Customization options are limited.

Company Overview

Blackbaud is a software and merchant account provider that specializes in solutions for nonprofit organizations. Its payment solutions allow merchants to process credit card and ACH payments. Founded in 1981, the company has grown from a simple computerized billing service into one of the largest all-in-one solutions available for charities. Blackbaud utilizes Chase Merchant Services, Wells Fargo, and First Data Canada for its backend processing. As of 2022, Blackbaud has integrated Paypal and Venmo payments into its services.

In 2023, Blackbaud partnered with Almabase, an educational software company, and SwipeTrack Solutions, a patron experiences tech company.

Blackbaud Merchant Services' Credit Card Processing

The primary service of Blackbaud Merchant Services is efficient credit card processing. This service enables nonprofits to securely accept a variety of card payments, ensuring a smooth transaction experience for organizations and their donors alike. The system is designed to handle transactions promptly and securely, building trust in the payment process.

Blackbaud Merchant Services' Online Payment Processing

Recognizing the growth of online transactions, Blackbaud Merchant Services offers a secure online payment processing service. This service includes a reliable online payment gateway that facilitates efficient management of online transactions, meeting the needs of a digitally engaged donor base.

Mobile Payment Solutions by Blackbaud Merchant Services

To cater to nonprofits that require flexibility and mobility in transaction handling, Blackbaud Merchant Services offers a robust mobile payment service. This feature allows organizations to accept and process card payments directly from a mobile device, providing increased convenience and adaptability.

Integrated Fundraising and Donor Management Tools from Blackbaud Merchant Services

In addition to their payment processing services, Blackbaud Merchant Services also offers integrated fundraising and donor management tools. These software solutions cover a variety of functionalities, including donor relationship management, campaign tracking, data analytics, and more. These tools aid nonprofits in improving their operational efficiency and fundraising effectiveness.

Blackbaud Merchant Services' Fraud Management and Security Services

Understanding the importance of secure transactions in maintaining donor trust, Blackbaud Merchant Services provides advanced fraud management and security services. These services include tokenization, PCI compliance, and fraud detection and prevention tools to ensure secure handling of donations.

Blackbaud Customer Reviews

Here's What Their Clients Say

Customer Reviews Summary
Total Online Complaints >10
Live Customer Support Yes
Most Common Complaint N/A
Recent Lawsuits Yes

Low Complaint Volume

Our research has uncovered just over 10 negative Blackbaud reviews, with none categorizing the company as a ripoff or scam. A particularly detailed negative review of Blackbaud Merchant Services suggests that while Blackbaud offers a robust array of features and has a strong sales team, it may be overpriced relative to its value and can have a steep learning curve. This sentiment is echoed in several reviews, both positive and negative, framing Blackbaud as a dependable, all-in-one solution suited for medium to large non-profit organizations. However, very small or very large charities might find the lack of third-party support or the cost of additional features limiting. We encourage you to share your own experiences with Blackbaud Merchant Services in the comments below to provide further insight to others.

Blackbaud Lawsuits and Fines

In 2018, Blackbaud faced a lawsuit from Mission Measurement Corporation in the Eastern Division of the United States District Court for the Northern Division of Illinois, accusing the company of violating the Defend Trade Secrets Act of 2016 by improperly using confidential information. The status of this case remains unresolved.

Another lawsuit was filed against Blackbaud in April 2018 in the Central District of California. In this class-action lawsuit, William Brown, et al v. Blackbaud, Inc, the plaintiffs allege that Smart Tuition, a Blackbaud subsidiary, included unlawful late fees in its contracts, violating California’s Unfair Competition Law. This case is also pending resolution.

In 2020, Blackbaud experienced a significant ransomware attack leading to a major data breach, impacting many clients including The American Red Cross and The Boy Scouts of America. The breach involved sensitive information for millions of individuals. This incident has led to at least one class-action lawsuit, focusing on Blackbaud’s delayed disclosure to its clients.

Additionally, Blackbaud has been fined nearly $200,000 for wage and hour violations and labor relations issues.

Blackbaud Customer Support Options

Blackbaud provides customer support options including a dedicated phone number and chat support, offering service levels that are in line with top-rated credit card processors known for excellent customer service.

Blackbaud Customer Service Numbers

  • (800) 443-9441 – Toll-Free Customer Support
  • (843) 216-6111 – Fax
  • (800) 468-8996 – Billing

Blackbaud Online Ratings

Here's How They Rate Online

Online Ratings Summary
BBB Reports 32

Low Complaint Volume

The Better Business Bureau currently assigns an “A-” rating to Blackbaud and does not show that the company is accredited. Blackbaud’s BBB profile has received 20 complaints in the past 36 months. Of these 20 complaints, only 11 were resolved to the satisfaction of the merchant. The remaining 9 were resolved to the dissatisfaction of the merchant or received no final response.

What Merchants Say

In addition to those 20 complaints, Blackbaud has received 12 informal reviews on its BBB profile. All 12 reviews are negative, receiving 1 out of a possible 5 in each case. The most recent complaint details difficulties with Blackbaud’s tuition management:

They call themselves “Blackbaud Tuition Management” but then use the moniker “Smart LLC” when taking money out of downstream customer bank accounts. It looks like fraud and they claim no responsibility for their bad business practice. They assess bank fees that they refuse to waive when shocked customers see potentially fraudulent charges on their bank accounts from their affiliate company. If they are using multiple names to do business, they need to be transparent to the end users. This is a bad and terrifying business practice.

Businesses in situations like these can benefit from understanding how to cancel services without paying a fee or enacting other undesirable terms and conditions of their contract.

An “A” Rating

In light of this information, we agree with the BBB’s rating at this time, but business owners should be aware that there is cause to be skeptical of the BBB’s information.

Blackbaud Fees, Rates & Costs

A Closer Look at The Contract

Cost & Fees Summary
Cancellation Penalties No
Monthly & Annual Fees No
Processing Rates Variable
Equipment Leasing Yes

Blackbaud Pricing Overview

The Blackbaud Terms & Conditions introduce a unified fee structure known as OneRate, which applies a fixed rate of 2.60% plus $0.26 to all card transactions, irrespective of the card type or transaction method. Additionally, ACH transactions incur a fee of $0.75 each. The pricing details, highlighted on page 3 of their documentation, confirm the absence of monthly minimum fees, annual fees, setup fees, gateway fees, PCI compliance fees, batch fees, or binding long-term contracts.

Blackbaud’s marketing materials do not clearly state if an early termination fee is applied. However, a representative from Blackbaud mentioned in a review comment section that users can terminate their service without incurring any penalties, a stance supported by the contractual terms.

Evaluating Blackbaud’s Payment Solution

While Blackbaud’s flat rate for transactions mirrors the industry’s average for mid-qualified or non-qualified transactions, the elimination of additional fees renders it a cost-effective choice for many organizations. The primary limitation noted by clients is Blackbaud’s preference for integrating their payment solutions exclusively with its suite of software products. This integration may restrict non-profits from seeking competitive third-party solutions for donor management, web services, analytics, and marketing tools. Consequently, organizations should thoroughly assess their interest in Blackbaud’s comprehensive software offerings prior to adopting its payment processing services. Non-profits aiming for the most favorable rates should consider comparing services from more affordable merchant account providers.

Additionally, for broader service options, reviewing our selection of the top merchant account providers is advisable.

Blackbaud Employee Reviews & Sales Tacitcs

Should You Work For Them?

Jobs & Marketing Summary
Uses Independent Resellers No
Telemarketing No
Misleading Marketing No
Discloses All Important Terms No

No Sales Complaints

Since Blackbaud Merchant Services is an optional service within the Blackbaud suite of products, it is primarily marketed to interested or prospective Blackbaud customers. This means that the company does not utilize independent sales agents or engage in “hiring mill” policies that typically plague the credit card processing industry. As a result, we have found no Blackbaud reviews that accuse the company’s sales staff of misrepresentation or nondisclosure.

This compares favorably to our list of best credit card processors.

No Deceptive Advertising

The Blackbaud website does not disclose the pricing of many of its products and services, but it also does not promote any deceptive rates or fees. We will therefore award it an “A” in this category for the time being. If you suspect that Blackbaud is overcharging you, we recommend seeking a third-party statement audit to find and eliminate hidden fees.

Our Blackbaud Review Summary

Our Final Thoughts

Blackbaud appears to be a solid credit card processing provider according to all available information. The company has garnered positive feedback from medium-to-large nonprofits, praised for its extensive range of features and customizable solutions. However, its rigid and relatively expensive pricing structure may not be as appealing to smaller nonprofits or very large organizations.

Blackbaud stands as a reliable payment processor for established nonprofits, offering tailored solutions that meet the needs of organizations looking for robust and adaptable payment processing capabilities. Nonetheless, we recommend that potential clients compare Blackbaud’s pricing and features with those of other top-rated providers to ensure they find the best fit for their unique requirements.

Location & Ownership

Blackbaud is headquartered at 65 Fairchild Street Charleston, SC. The company’s payment processing service is called Blackbaud Merchant Services and will be the primary focus of this review. Michael Gianoni is listed as the president and CEO of Blackbaud.

If you found this article helpful, please share it!

Which is Most Important for You?

If you had to pick one, which quality would you say will be the most important with your next credit card processor? Tap or click your selection to register your vote:

  1. Low Transaction Fees
  2. No Monthly Fees
  3. No Contract
  4. Reliable Customer Support
  5. Quick Signup

Testimonials & Complaints

How Did Blackbaud Treat You?

9 User Reviews

  • katie

    This payment-enabled fee of $50/mth from Blackbaud started at the beginning of March. According to the information, it would only be for customers that use payment-enabled services, such as processing payments, etc. Come to find out that even if you only use the database to store and record donors, and not to process any transactions through your bank, you are still expected to pay this fee. Which by the way they say is a monthly fee of $50, but they will be billing it annually…so $600.00 EXTRA dollars in addition to the renewal amounts that do not list any additional fees after the renewal charge. But all their CEOs and Directors are making bank selling their shares…it’s ridiculous.

    • Lynne Esselstein

      We are equally upset about this. The additional charge $450 annual charge was imposed outside of our signed contract. A Blackbaud rep told us today: “Your account executive or sales person would likely have had no idea of this charge, this was only
      recently introduced by the highest levels of Blackbaud, I do not think they would be able to help.” We do not use any merchant services with our subscription as we have a separate setup with PayPal which is adequate (and reasonable!) for a nonprofit our size. Whoever these people are at “the highest levels”, they just lost our business.

  • Mark J Theodoroff

    Blackbaud offers an integrated payment program, but we are currently working with a merchant that is using Blackbaud and their current program is a “bill back” payment program. Most of the time these bill back programs don’t not work out in favor of the merchant. Bill back programs are confusing and allow processors to “hide” fees and charges. I’d like to hear your feedback on bill back and why a processor would ever use this kind of program.
    The merchant we are working with does about $3-4M a year in revenue, so they are a decent size merchant.
    Thanks for your comments on this Phillip!

  • Kendra DeWitt

    Phillip:

    Thank you very much for your review of Blackbaud Merchant Services. As the Payment Business product marketing manager, I wanted to reach out and let you know that we don’t charge an early termination fee. Clients can come and go as they wish without penalty.

    Please don’t hesitate to let me know if you have any questions or if there’s any other information that you need.

    Best regards,

    Kendra DeWitt
    Product Marketing Manager, Payment Business
    Blackbaud, Inc.
    [email protected] | blackbaud.com

    • Joe Smith

      Thanks for taking questions. Why is Blackbaud introducing this fee outside of contracted terms after all of your customers had to win back the trust of donors when you had the largest data breach in the history of the nonprofit world? Shame. On. You.

      • Les Fujimoto

        Joe,
        We complained to Blackbaud and they told us it was for the betterment of all Blackbaud customers, those who use and those who do not use their payment system.
        What legitimate business today gets away with and has the audacity to unilaterally charge all their customers, especially nonprofit customers for an additional program that we never agreed to , wanted, or signed up for, right in the middle of our contract term!
        Class action?????

          • Can I switch database providers?

            The “Payment Enablement Fee” is infuriating! Every time I see that fee on an invoice, I’m angry all over again. I imagine if Blackbaud weren’t still embroiled in the data breach class action suit, that one(s) of us would have launched such a suit about this fee. If it weren’t so complicated and time-consuming to switch databases, we would have done so when this fee came out of the blue, non-negotiable, for a service to which we don’t and won’t subscribe (and which we pay another company to provide to us).

            When the fee first came up, along with being disgusted, I imagined some cost center within Blackbaud was not making its numbers, thus this fee to cover.

            You know how a disgruntled customer tells 7 people who might each tell 7 more…?

            When people ask what database software we use, I suggest they steer clear of Blackbaud.

Tell Us How They Treated You

Sharing your experience influences our rating and helps other business owners make informed decisions. Please take a moment to tell us if they are serving you well. Your email address will never be published, shared or sold. We only use it to authenticate that you are a real person and, if you select the option for it, to let you know if someone replies to your comment. Required fields are marked *

Comments must contain details about your experience. Please do not use ALL CAPS. Self-promotion, marketing content, or contact information of any kind will not be published. By submitting a comment, you are agreeing to our Comment Policy

Copyright

Copyright © 2024 CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.

Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.