Why are merchant processing services important to the bank?
It’s important to retain customers. All businesses have specific needs to operate, especially ones that make it easy to collect payments from their customers. The bank needs to provide the technology and services to make this happen in a timely and cost-effective way. Community banks need to remain competitive and offer the right services, or clients could consider moving their banking needs to one of the larger banks.
While there are merchant fees associated with accepting a credit card, it costs less money to pay the interchange and transaction fees than it does to pay the interest on borrowed money.
Anything a client can do to speed up the payment process is a benefit to their bottom line. We partner with a trusted partner to ensure our customers receive competitive rates with great customer service. When we have a trusted relationship, we know our bank’s customers are being well cared for and can rely on us to make a financial recommendation.
Why should a bank partner with an Independent Sales Office (ISO) for their merchant services?
I have been the primary contact for a merchant program in the past, and it is difficult to remain current with the trends and regulations in this industry. Merchant services is a very complex industry and a bank needs someone that is focused on the industry with years of experience in order to lead through challenging situations. This knowledge is critical to a successful program.
They not only need to tell the bank’s clients about merchant services, pricing, equipment, PCI compliance, and industry regulations, but they should be able to explain all the industry acronyms in business terms and explain why it is important for the business owner. They need to be able to do this for both B2C and B2B businesses.
It’s hard for someone to explain all the above nuances when it’s a part-time piece of your job, and almost impossible to answer questions when there is an issue with the account because of the third parties involved and context that may arise. The industry changes so fast, with all the different technology integrations and security updates, you really need a team that can lead these conversations. Furthermore, the partner has to offer competitively priced options and provide great customer service.