Consumers are using plastic for more purchases than ever, and credit card processing fees have become a painful but accepted cost of doing business for business owners. The average fee hovers around 2 percent or more per transaction, all of which usually goes straight to a large credit card processing company.
A local startup company is offering businesses a way to actually feel good about paying those inescapable processing fees. Giv Local has developed a socially responsible credit card processing model that donates 20 percent of transactional fees to a local charity of the merchant’s choice.
“Giv Local is a credit card processing company that was created because I wanted to help people,” said co-founder Shizuka Buckley. “I wanted to help the community, and I also wanted to help businesses of all sizes and nonprofits. Giv Local was a way of bridging all of that together.”
Once a business signs on to be a Giv Local merchant, Giv Local charges that merchant a rate that is equal to or less than the credit card processing rate the merchant currently is paying. The merchant then chooses a local, verified charity to benefit. Giv Local gives 20 percent of the revenue it makes from the processing fees to that charity.
Because it uses the same technology that the big banks do, the entire process, from encryption to authorization, is as secure as every other credit card transaction, according to co-founder Sam Buckley, Shizuka’s husband. A system of “checks and balances” is in place: Centre Foundation verifies that each chosen charity is authentic, a CPA firm provides an annual attestation verifying that Giv Local has indeed donated 20 percent of the revenue it makes from fees, and Giv Local provides a detailed impact report each year to participating merchants and nonprofits.
“Credit card processing has always been such a muddy industry. We saw that big banks were taking advantage, and we wanted to clean it up,” Shizuka Buckley said. “We want to be very transparent. That was very important to us.”
The Buckleys and their friend, Christian Baum, began the intensive research and legwork necessary to become a credit card processing company in December 2017. Shizuka Buckley, a former Chloe & Isabel representative, has an extensive background in marketing. Sam Buckley has had a long career in big banking, most recently with PNC Bank. Baum is an artist, freelance designer and co-founder of community initiatives, including the co.space and New Leaf Initiative. The three have been friends for seven years, and bonded over a shared interest in gaming and entrepreneurship, Baum said. Their official titles reflect their passion for gaming and their areas of strength. Shizuka Buckley is “Charity Sorceress,” Sam Buckley is “Processing Druid” and Baum is “Design Yeti.”
The team officially opened the company in June, and have been off and running ever since.
“Because of all of our experiences in marketing, design and banking, we could actually produce something that we could really get going basically on Day 1,” Baum said. “We already have about three dozen customers and 200 more in the queue.”
Scott Dutt, co-owner of Happy Valley Optical, is one of those customers. He and his wife and business partner, Dr. Robin Dutt, recently partnered with Giv Local and chose Centre Safe and Centre Foundation as their beneficiaries.
“Credit cards are something that every business must process, and this is an opportunity for us to use what we’re already doing to give back to the community,” Dutt said.
“These guys were super easy to work with, and they will be saving me a little bit of money, but that’s not the important part of this. … I think every small business that cares about their community should look at how they spend their money and what they’re spending their money on. I think it’s very important that we keep our money local to support our local community members. … This was really a no-brainer.”
This is the kind of reception the Giv Local team has been expecting.
“We’re giving some of these small businesses who may not have the margins to build nonprofit giving into their budgets a way to donate to whatever they are passionate about without costing them any extra money — in fact, most of them will actually save money,” Sam Buckley said. “It’s a win-win situation.”
The founders are anticipating rapid growth and are planning accordingly.
“We’ve accounted for it and we’re definitely structured for growth, not only in the local adjacent counties, but also on the national stage,” Sam Buckley said.
Ultimately, the Giv Local team remains focused on its altruistic goals. The group is working toward becoming certified as a B Corporation — a for-profit company that meets rigorous standards of social responsibility and transparency. The team’s short-term goal is to give $1 million back to the Centre County community.
“One of the things that is so exciting about this is the impact the community is going to feel as a whole,” said Shizuka Buckley. “Not only are the businesses saving money, but it’s really making a big difference for everyone.”
