using "for profit" merchant account for nonprofit event

we are a non profit hosting a one time event and would like to use paypal to accept online registration payments.

We don't really have a need for a full time merchant account. Our president owns his own retail business and accepts credit cards there.

Is it possible (legal) to accept non profit money through that account if it is transferred after the event to the non profit's checking account?
thanks in advance for your help

I have no legal expertise whatsoever but I will give you my common-sense personal opinion that it is perfectly fine. We have a system (Wild Apricot ) which is used by hundreds of non-profits for event registrations etc. and all the payments are handled via PayPal, I have not heard anyone having any tax/legal issues.

Actually this is not legal per Visa/MC.  Due to fraud and laundering restrictions you are not allowed to charge for one business and deposit funds from those charges to a completely unrelated business.   The retail business could lose their merchant account for doing this, if I understand you correctly.

Let me know if anyone has any further questions regarding this.

Thanks,

Joe

msinfo@merchantseek.com