Can a non-profit organization open a merchant processing account to accept donations via credit card?

Yes, a non-profit organization can open a merchant processing account for the purpose of accepting credit card donations. However, the non-profit organization must go through the same process as any other business, so the approval process can be lengthy. Also, the fees charged by the bank may vary. The advantage is that the non-profit organization will receive the credit card donations more quickly and the name of the non-profit will show up on the donor's credit card statement.