14 Apr Why Not to Get a Merchant Account From Your Bank
For businesses, the traditional way of payment such as cash, checks, and money orders has been replaced as the preferred method of payment. Today, new technology developments have provided people with a variety of payment options, which include credit cards, bank check cards, and debit cards. Moreover, these payment options can be easily used to make payments by phone, online, or with card payment processing machines.
With the transformation from traditional payment methods to payment options such as credit cards, many businesses have made adjustments to cater to their customers. One of the major adjustments has been the addition of merchant accounts to accept payments made with credit cards, check cards, debit cards, and other similar payment options.
As businesses have aggressively added merchant accounts to accommodate customers, the number of merchant providers has grown significantly. In addition, with the increase number of providers, the options available to businesses regarding the cost, services, and flexibility associated with merchant accounts has made obtaining one more cost effective.
However, businesses must be proactive in seeking out the best merchant business accounts for their particular situation. In general, one of the providers that most businesses should usually avoid is their bank. There are several reasons why businesses should avoid the use of their bank as their merchant business account provider, which include the monthly fees typically associated with the accounts, the setup cost for the accounts, the usual delay in transferring customer payments, and the direct access that banks have to checking accounts.
Banks are in business to make money, and many banks make a significant amount of revenue directly from their customers, which include businesses. Therefore, the vast majority of businesses will be able to find better merchant account deals with providers other than their banks. In addition, merchant business accounts are additional revenue streams for banks. As a result, the technology, customer service, and cost options are usually lacking in comparison to providers that provide merchant accounts as either the sole or the primary source of company revenue.
Credit card processing is a necessity for most businesses today. People expect the acceptance of payment by credit cards, and businesses that do not offer credit card processing are at a significant disadvantage. Even though many banks offer merchant business accounts to their customers, it is generally better for a lot of businesses to look outside of their banks for merchant services.