Five Reasons Why You Should Not Use Your Bank for Credit Card Processing
Although it may seem appropriate to seek services from the bank where you have your business account, this would not be true for your credit card processing. For example, a company that is a loyal customer to a bank may receive better terms on a bank loan when they apply for the loan through their own bank. But when it comes to your credit card processing this is the exception. You should look outside of the bank for better processing options.
Many banks offer credit card processing services, but it is through a third-party vendor. This results in higher fees for a merchant. Credit card processing is offered only to increase a bank’s revenue. Working with a company that specializes in just credit card processing is the best way for a company to ensure that they get the best service, and the most competitive rates.
2. Banks Are Not Efficient
A bank’s specialty is checking accounts, lending or storing money. Banks do not process credit cards. The vendor used may not offer many options or networks. This can result in numerous problems, and much higher credit card processing costs over time.
3. Banks Do Not Service Your Merchant Processing Account
Since banks do not set up the account, which is through a third-party vendor, the bank will not be able to help you when it comes time for service. If you have any questions or problems with your account, you will be referred to a representative of the third-party vendor. When you work with a company that specializes in credit card processing you will have access to representatives that understand all aspects of credit card processing.
4. Costly long-term contracts
The standard wording of the agreement from “banks” is a three-year term with a prohibitive cost to close the account early. It is referred to in the industry as “early termination fee” or ETF. Unless you negotiate, it is there by default. It is not disclosed. This will come back to the bank as revenue.
5. Expensive Lease
The standard operation procedure is to place a merchant in a 48-month lease if you need equipment. Rarely is it mentioned purchasing equipment is an option. The customary cost of equipment is around $300 to $500. A lease can run around $50.00 plus per month. Over 48 months that adds up to $2400.00. Just like a car, you must fulfill all the terms and then return the equipment back to the leasing company to satisfy the lease and stop future payments.
If you have questions about this subject or other concerns related to Point of Sales Systems or credit card processing, contact us anytime via email email@example.com or call us at 904-567-8612
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