August 23rd, 2005 by Jamie Estep
MSP’s and ISO’s are better than banks for credit card processing!
Filed in: Merchant Accounts | 1 comment
I’m not going to pose this topic as a question, I’m just going to say it. Merchant Service Providers are better than banks for providing quality credit card processing services.
Merchant service providers provide the same type of service as banks, but do it with better customer service and support, with lower rates, and better prices on credit card processing equipment.
| The settlement by the San Francisco bank amounts to a partial return of what the plaintiffs contended were “junk fees” that were never properly disclosed beforehand “and never explained when the merchants called to ask about them.” |
Why do banks retain and gain customers?
The 3 biggest reasons that merchants chose their bank for their credit card processing are sentiment, convenience, and not knowing of other options.
Many merchants stay with their bank for their credit card processing because they have always been with their bank and they feel a sense of loyalty to them. They believe that since they have been with their bank for so long, their bank is definitely going to give them the best deal and the best service. The truth to the matter is that these people pay the most for their credit card processing of any group in the country. They are usually locked into expensive leases or expensive equipment purchases. Their processing fees are also usually much higher than the standard in the industry. These businesses also don’t realize that many banks resell services with a substantial markup from a merchant service provider. Yes, banks use merchant service providers for their own merchant services. Only a few large banks actually operate their own merchant services department.
Banks are in the business of money for the purpose of making more money. Even past banking history with them isn’t going to prevent them from making more money if they are able to.
The convenience of doing business with the same company for several financial needs is very appealing for many. Banks are no more convenient that a merchant service provider when it comes to credit card processing. Both organizations provide the exact same services in the same way, so there should be no difference in convenience to a business.
Many business owners do not realize that they have other options than their bank. Until they look for or hear about their other options, they will have no idea that other options do exist.
Why are Merchant Service Providers Better?
Merchant service providers are in the business of providing credit card and check processing services and nothing else.
Assuming that it is a good provider, they should have far superior customer service, lower processing rates, and substantially lower prices on processing equipment. Good MSP’s have 24 hour support, and you will have a personal account contact if you have questions or problems. If your account manager is unavailable, there will be other people who can speak to you, so you are never left with an unanswered problem. MSP’s can fix almost any problem over the phone. The equipment that MSP’s sell is far cheaper for the same equipment sold by banks. You may also have the option for free overnight equipment replacement if you have a equipment problem.
Merchant Service Providers can also work with any bank, and you can change banks and not have to change your credit card processing. If processing with a bank, you have to change both accounts if you ever want to switch to a new bank.
Merchant Service Providers have experience with every type of business. Odds are that you are not the first business in your industry. Merchant Service Providers that have been around for a long time, probably have businesses just like your processing with them. They will know what the best setup for your business is.
MSP’s are in actuality more convenient, lower priced, and have better service than banks. If they didn’t they would never be able to stay in business.
Additional Articles Involving Banks:
Why would you ever lease processing equipment?
I apologize if this duplicates post another post I made on this site. But as per my other post, this page reflects exactly what I was talking about. That is, all the discussion on this page about merchant accounts, but NO mention of specifically who are the good merchant account providers and how do I find a review of MSP’s? On the page about shopping carts there’s a list of shopping carts, and on the page about gateways there’s a list of gateways, but on the page about merchant services providers there’s no mention of any MSP’s.
Maybe I’m missing something. I thopught I’ve looked at every page on this site, but maybe there’s a great discussion somewhere here about specific MSP’s?
Please help!