Use the Payrix merchant application that matches how your organization is legally set up: Non-Profit if the IRS recognizes it as tax-exempt, such as a 501(c)(3); Government only if a government agency owns and runs it; and Business for every other organization. Payrix makes the final call from your documents, and the classification doesn't change your processing rate.
Applies to: Admins and treasurers setting up card payments · All plans · Organizations applying for a Payrix merchant account
Where: The Payrix merchant application link that TeamSideline Support sends you. After approval, your gateway is listed under Administration > Subscription > Payment Gateways.
Which application to use
| If your organization is | Use | What Payrix may ask you to prove |
|---|---|---|
| A nonprofit the IRS recognizes as tax-exempt, such as a 501(c)(3) league, including one that operates under a different name (DBA) | The Non-Profit application | The IRS 501(c)(3) determination letter, and sometimes your Articles of Incorporation |
| A program owned and operated directly by a city, county, school district, recreation district or other government agency, using the agency's EIN and address | The Government application | Documents that show the agency owns and operates the program |
| Anything else, such as an LLC, corporation, partnership or sole proprietor, a club without IRS tax-exempt status, or a group with its own EIN that works alongside a government agency | The Business application | Business registration documents and the IRS letter that shows your EIN, such as the CP 575 or a 147C letter |
In the application, choose the business type that matches your registration paperwork (for example corporation, LLC, nonprofit or government), and enter the legal business name exactly as it appears on your IRS paperwork. Nonprofits enter 8398 as the industry.
Why government-entity status may be denied
- Payrix classifies an organization as a government entity only when a government agency, such as a city, county, school district or recreation district, owns and operates it directly.
- If your application used a separate EIN, or lists a business address that's independent of the agency, Payrix may classify the account as a business instead. For example, a nonprofit league that plays on city fields but has its own EIN isn't a government entity.
- If your organization is part of a government agency, TeamSideline Support can work with you to send Payrix documents that show the relationship.
What the classification changes, and what it doesn't
- It doesn't change your processing rate.
- It changes what Payrix asks for. The Government application doesn't ask for the owner's Social Security number or date of birth. The Non-Profit and Business applications do, because Payrix verifies the person named as owner or principal; for a nonprofit, that's usually an officer such as the President or Treasurer.
- Whatever the classification, Payrix may approve the account conditionally while it reviews your documents. You can take card payments during that time, but payouts may pause until the documents arrive.
What you'll see
After Payrix approves the application, TeamSideline Support connects the new payment gateway to your site. Admins with the Billing role then see it under Administration > Subscription > Payment Gateways, shown as your legal name, doing business as the name you entered, with your Payrix merchant ID and the status Connected.
If it doesn't work
- Payrix asked for a 501(c)(3) letter and you don't have one. A state nonprofit filing or an EIN alone doesn't show federal tax-exempt status. Payrix can set up the account as a business so you can start taking payments. When the IRS recognizes your organization, send the determination letter to TeamSideline Support, and Support asks Payrix to change the account to Non-Profit.
- Payrix classified your city or district program as a business. Your application probably used a separate EIN or an independent address. Contact TeamSideline Support with documents that show the agency owns and operates the program.
- You used the wrong application. Contact TeamSideline Support before you start over. An account set up under the wrong type is usually replaced with a new application, and Support plans the switch of the payment gateway on your site.
- Your organization's legal entity or EIN changed. That needs a new merchant application, after which Support replaces the payment gateway on your site. Changing only the bank account doesn't need a new application; see Payrix - How to Update Bank Account.
Good to know
- TeamSideline Support sends you the application link and connects the gateway after approval, but only Payrix decides how your account is classified. Admins can't add a payment gateway themselves.
- The documents Payrix may ask for, and how to send them, are in Payrix verification: which documents are required and how to submit them.
- Never email a Social Security number or date of birth. If Support needs them, they send you a secure link.
Related articles
- Payrix verification: which documents are required and how to submit them
- How to complete the Payrix merchant application
- What are the Payrix credit card processing fees, and who pays them?
- Integrated Payments with TeamSideline
- Payrix - How to Update Bank Account