The Bank is Not Your Credit Card Processing Choice

It can be tempting for a business owner to consider keeping all their financial resources in one place – usually their bank. The bank has their checking account, may have provided a loan to get the business going and has probably offered a great deal of sound financial advice.

However, when that business makes the leap to the Internet they are going to want to make sure they offer online credit card processing. The savvy business person knows that more and more consumers are embracing online shopping, not to mention that that those same shoppers expect to be able to pay by using their credit cards.

They are also acutely aware of the benefits that come with being able to accept payments online. Online retailing studies have shown that credit card acceptance spurs site traffic, increases sales and profits and drives repeat business. What business owner wouldn’t want that?

But when they go to their bank some business owners may be told their business isn’t big enough to rate merchant services. Or they may look at what the bank charges for card processing and run for the hills.

Much of this stems from the fact that banks have several revenue streams – savings, checking, CD’s, mortgages, insurance, financial planning, etc. It’s like the old cliché that they are like a “jack of all trades and a master of none.” As such there are some things, like online card processing, where it is hard for them to be the optimum provider.

So what’s the answer? A smart business person should seek the offerings from a merchant services company. There are several reasons for doing so.

The chief reason is that credit card processing companies do not have any other professional disciplines under their umbrella. As such they can concentrate on that particular business and make better and more strategic offerings.

Plus, they have the ability to offering merchant services to companies of various sizes, which is a great asset to the small business that wants online card acceptance as a means of building their business to the next level.

And because they only do one thing, and do not have to service multiple profits centers – as does a bank – their rates are bound to be competitive.

It has almost become a fact of life for online business owners that having credit card processing it going to make their financial picture better – so why not maximize what card processing will bring to the table by making sure one gets the best possible merchant account package?

And by the way – the point of this article was not to demonize the banking business. As stated at the beginning a great relationship with a bank is important for a business person, no matter what size their business is.

So when your online store sees sale and profits increase, take that extra money to your favorite banker and put it to work for you. Trust me, the bank will be happy to see you walking in the door week after week with larger and larger deposits.