Most Business owners in Orlando we’ve spoken to have asked “Should I use my bank merchant services?”
Without understanding how the credit card processing industry works you may quickly be convinced that this idea makes the most sense.
However, once you grasp the whole picture, it’s easy to see that there are better options and using your bank is probably not in your best interest.
Choosing your bank seems like the smart play
Trust in a person, establishment, or process is usually the most important factor when choosing any type of service or product; especially when it has to do with money and finances.
Banks are secure financial powerhouses with long lasting credible names. So when your bank tells you that they provide credit card processing, it’s normal to think that they are the best option.
Plus, you know that your bank probably isn’t going anywhere so you can walk in at any time to discuss your credit card processing.
When you set up your business bank account you’ll quickly learn that they can also provide merchant services, business loans, bill pay, etc.
They will tell you that by bundling your bank account and merchant services they can give you a special rate or at least eliminate certain bank fees; Just like bundling your TV and internet services.
These seem like appealing reasons to choose my bank?
I must admit, if I were opening a new business and didn’t understand how credit card processing works, I would buy into a bank’s pitch and most likely choose them as my merchant partner.
However, having inside trade secrets and knowledge on the payment industry, I know for certain that this would be a mistake.
Let me first explain why and then i’ll provide insight on the best way to choose your merchant services provider.
Why you shouldn’t choose your bank
Even though banks can set up your merchant services, they aren’t providing this service in house. Meaning, they aren’t the actual processor.
Yes they deposit money and yes they issue credit cards to consumers. They however, do not process credit and debit card payments.
The reality is they are simply sending your information to the credit card processor who then creates your merchant account and gives you the ability to accept credit and debit cards. Learn more here.
The bank will profit in two ways: #1 Selling or leasing you the equipment that goes into your store to accept credit cards. #2 Monthly processing revenue markup and miscellaneous fees that the processor shares with your bank.
If you need to discuss your account, have questions, or run into a problem, the 1-800# that the bank provides to you goes directly to the processing company, not the actual bank. Banks only hire a local team to sell the merchant services and provide little to no after sale customer service.
So if you walk into your bank looking for help, it’s very unlikely that you’ll see the employee who convinced you to sign on the dotted line. Instead, you’ll be directed to that remote support number.
It’s very unlikely that someone will ever be available to come out to your business to help with any changes, upgrades or fixes.
The integrated services or bundled package is a sneaky sales tactic at best. They may save you a few bucks with your bank account fees but it will end up costing you an arm and a leg on the credit card processing side of things.
Banks use their credibility and undeniable advantageous position in the market to create this additional stream of revenue. It’s too bad they don’t provide a more trustworthy and customer satisfaction service to their clients.
Who should you choose for your merchant services?
Let me first say that you will have an equally secure financial institution processing your credit cards regardless if you choose your bank, a company you find on Google, or a random agent who shows up at your door. None of these merchant providers will actually be handling your money in a tangible way.
In fact, there is a really good chance that they will all be offering a program powered by the same U.S. processor who handles the billions of transactions for the biggest retailers in our Country. Scroll down on our home page to view – click here.
What you’re not guaranteed is low fair rates that are locked in long term or dependable customer service. To achieve this you need to do some research to find an individual with a proven track record.
It may sound easy or like common sense but for some reason business owners skip this extra step in verifying who they are dealing with. They often get caught up in too good to be true savings and rates and forget to check if the individual has delivered these types of results to other businesses in the market place.
In 2017 with the internet and reviews posted everywhere, it’s easy to quickly do your due diligence and find a reputable agent. No search results on the persons name or company is equivalent to 1 star Google reviews. You want to find a rock star who has a vested interest in your business’s effectiveness, savings, and overall success.
Basically, you want to call me and I’ll quickly get you on the right track. Contact Donnie.