PrintQ: What are the advantages of integrating merchant services with my business bank?
A: In today's relatively cashless society, customers who buy with credit and debit cards have been shown to spend more than they would if using cash. Moreover, use of credit and debit cards streamlines payment processing and accounting for businesses. A merchant account will also allow your business to develop affinity programs through the use of reloadable debit cards and gift cards, and build a pathway to lucrative e-commerce sales. Indeed, any costs associated with merchant accounts are quickly outweighed by the revenue that credit and debit card sales can bring in.
But one question still remains: To whom do you turn to provide merchant services? There are several options when it comes to merchant account services, but the best is right under your nose: your bank.
Many banks offer merchant services as part of a business account package. In fact, the provision of such services should be a criterion for any organization evaluating a financial institution for its banking needs.
Integrating merchant services with your existing banking relationship provides many advantages.
Chief among these is trust -- there is no underestimating the value of working with a trusted partner. Your bank knows you, and it knows your business. The bank's business advising team will be able to knowledgably assist you in effectively and holistically scaling your merchant services in alignment with your business's changing needs and goals.
In addition, when it comes to payment processing, your business and its customers need to know that payments will be handled in a secure, efficient manner and that any issues that do arise will be dealt with in a timely and courteous way. Most banks provide 24/7 customer service and support, not to mention the peace of mind that comes with working with a known entity.
Furthermore, many banks will offer proven business customers a reduction in account management and transaction fees.
Your bank should also be able to provide a consolidated view (via a dashboard) of all of your accounts and transactions. This will allow you to quickly assess the state of your financials and take appropriate action. Speaking of quick, another significant benefit to using your existing bank for merchant services is speedy turnaround time. Because your business checking account and merchant account are hosted by the same entity, the time between a transaction and when funds are deposited into your account is minimal -- often the next business day. This can be a major benefit compared with the kind of segregated setup that comes with a third-party provider, and it is especially important for small businesses with little breathing room when it comes to cash flow.
If you currently accept credit and debit card payments through a third-party payment processor, your bank should be able to easily switch you to its system. Some banks even allow you to use the equipment (such as terminals, PIN pads, and printers) and software you purchased through another provider.
Whether your business is new to merchant services or has been accepting credit and debit cards for some time, integrating these services with your banking institution can pay significant dividends.
