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Credit Card Processing with your local Bank | A good idea?

Posted by Alex Neir on Thu, October 04, 2012 @ 04:19 PM
Bank Credit Card Processing

It is often thought that opening a merchant account with the bank that handles the business checking account is the best way to ensure good rates and quality customer service for credit card processing. While there are instances where this is true, especially with very large business, often times it is the exact opposite.

Here are a few reasons why this is the case.

1.) Credit card processing in not their core competency

Most banks specialize in storing and lending money. Most, if not all have little to no experience in credit card processing and only see it as a way to leverage their customer relationships to increase revenue. Credit card processing is often outsourced to a third party where additional markup is added as a referral to a third party processor. Credit card processing is a completely different industry from the banking industry. The assumption that a bank is most capable entity for the set up and maintenance of a merchant account is similar to assuming a dentist can fix a broken arm.

Your business is much better served through seeking the assistance of a specialized company that only works with credit card processing accounts. Similar to the medical industry, you will be much better served through the use of a specialist and unlike the medical industry you will achieve a much better rate.

2.) The sales represenative is a 9 to 5’er

When working with a local bank to set up an account for credit card processing you will be working with a sales representative that has no financial interest in seeing that your account is set up and set up correctly. More often than not the representative will be a salaried employee working 9 to 5, or worse an hourly employee that will have no financial incentive for helping set up your account.

You would be much better served with a processor that has a sales force that is financially connected to the account creation and maintenance. If the representatives salary is connected to the processing account’s they set up, it’s amazing how efficient and available they become.

3.) Lack of flexibility

Most banks do not have the flexibility to set up merchant accounts on multiple networks. There are a handful of processing networks available and some are better than others depending upon the source of the transaction. For example the Omaha network is better than Nashville for retail swiped transactions. Again, it comes down to the fact that banks are not set up to handle the unique demands of credit card processing. Save yourself a lot of hassle and cost and seek a company that specializes in credit card processing.

Would you like information from a company that has specialize in credit card processing for over 10 years?

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Tags: Credit Card Processing Account, Credit Card Processing, Credit Card Processing for Small Businesses

How to save on credit card processing for small businesses

Posted by Alex Neir on Mon, April 11, 2011 @ 09:48 AM
Credit Card Processing For Small Businesses

How to save on credit card processing for small businesses

There are many ways to save on credit card processing for small businesses. First you want to make sure you select a company with a good reputation. Always check www.ripoffreport.com.

Next, I always suggest asking for the customer service number and testing the customer service experience before going any further. Let’s face it you are trusting a company to handle, what will amount to, a sizable portion of your businesses accounts receivable. If that function has a problem it’s nice to know that it will be handled appropriately before you spend the time and energy of setting up the account.

Once you select a company it’s important to understand what you can negotiate. Interchange fees and association due and assessments are fixed but the processor markup and fees are completely negotiable. An example of these fees include but are not limited to; monthly statement fee, monthly minimum fee, per transaction fee, batch fee, PIN debit fee, address verification fee, annual fee, account access fee,  PCI verification fee, termination fee, chargeback fee, set up fee, application fee, reprogram fee, etc.

Once you negotiate the very best rates and fees possible make sure, for retail businesses, the terminal equipment prompts customers to enter their PIN on debit/check card purchases (known as BIN Seeker technology). This has been proven to reduce costs up to 40%.

Lastly, make sure the business reviews their statement every month and compares each statement to the previous month. It is not uncommon to uncover junk fees that, when brought to the attention of the processor can’t be explained.

Want to know more? Check out: How to avoid big mistakes when opening a merchant account.

Tags: BIN Seeker, Affordable Credit Card Processing, Credit Card Processing for Small Businesses