October 29, 2020

4 Ways Merchant Services Can Benefit Your Financial Institution

Samantha Hubay

Written by:

Samantha Hubay

4 Ways Merchant Services Can Benefit Your Financial Institution


As the payments industry continues to advance and develop, small business owners have more options for financial solutions and assistance than ever before. Non-traditional financial service providers are breaking into the industry, creating fierce competition for institutions like yours. To put yourself ahead of the competition, you need to offer complete merchant services solutions.

In this post, we'll discuss some of the key advantages associated with offering merchant services and how doing so can grow your business.


Table of Contents:

  1. Simplify Payment Acceptance
  2. Merchant Services Breakdown
  3. Advantages of the Right Merchant Services Program


Help Business Owners Simplify Payment Acceptance

Your business customers are navigating a complicated payment landscape right now. Due to the many advancements of our industry, customers are used to having many options to pay. As a result, every customer has a different preferred method of payment.

For example, let’s say Sally runs a small retail store on a busy street in her neighborhood.

Every day of the week, she welcomes dozens of customers, who all carry a different preferred payment method.

Customers one, two, and three choose to pay with a credit card, while customers four and five prefer to make their purchases in cash.

Customer six always has a checkbook handy, and customers seven, eight, and nine are looking for a contactless payment option.

To keep all her customers happy, Sally needs an innovative payment processing solution equipped for all these payment options and more.

With the support of the right merchant services partner, your financial institution can help Sally find the comprehensive solution she needs.

Offering solutions like these won’t just help Sally grow her business. They will also help you take your own institution to the next level.

Next, we'll explore merchant services a bit more in depth.


What Are Merchant Services?

Before we get into the good stuff, here’s a quick breakdown of what we mean by “merchant services”.

At their core, merchant services are the services a business uses to accept and process payments. There are many ways to accept payments today, which makes the term “merchant services” quite broad. It could refer to anything from full-scale point of sale solutions to payment gateways, mobile payment acceptance tools, and more.

merchant services provider is the company that provides the hardware and software involved with accepting and processing payments.

For example, Electronic Merchant Systems is a leading merchant services provider and payment processor. To best serve our customers and partners, we provide innovative, secure products and services including:

merchant services program allows your financial institution to provide these payment processing and acceptance solutions to your business customers. The right program will create valuable connections for all involved parties.

If you choose your partner wisely, the advantages you receive through a merchant services program can help your institution stand out from the competition. Let's take a look at those advantages right now. 


The Advantages of the Right Merchant Services Program

Merchant services should be advantageous for both you and your business customers. There is certainly plenty of opportunity for big benefits, if you have the right provider.

Here are four benefits you can expect when your financial institution partners with a merchant services provider:


Deposit Growth

We’re willing to guess that building deposits is a priority for your institution, which is why we put this advantage first. Merchant services enable businesses to accept credit card payments and automatically deposit them into their account.

Therefore, when you set up a new customer with a business checking account and merchant services solution, you set yourself up for a steady stream of deposits from that business. Before long, your business will go from a community institution to a community necessity!

Community Loyalty

That brings us to the second advantage: community loyalty. Many people, including business owners, are loyal to the communities in which they live. They strive to shop at local stores and manage their money with local institutions, in support of the economy in their hometown.

Local business loyalty is a huge, built-in advantage for your institution and offering dynamic merchant services solutions only enhances that advantage. Make sure the provider you choose is willing to assist you with marketing materials and messages, so you can spread the word about your merchant services offerings!

Upsell Opportunities

You can use merchant services to increase customer loyalty and engagement, but also to win new business and grow deposits. This is because merchant services products offer great upsell opportunities.

For example, let’s say a business owner comes to your institution in search of a simple credit card acceptance terminal. Of course, this is something you can provide through your merchant services partnership. However, if you’ve chosen the right partner, you can upsell them to a complete point of sale solution that will allow them to not only accept payments, but completely manage their business. This is an incredible advantage for your business if you’re earning residual income on merchant services sales.

Improve Customer Success Rates

Another advantage a merchant services program will offer is the power to help your business customers improve their success rates. For example, if your customer conducts business on-the-go, they may need a payment gateway to accept simple, secure payments online. You can provide them with this solution and offer to pair it with an in-person mobile payment acceptance option as well.

When your customer has the power to accept payments online, over the phone, and in-person, they can rapidly improve success rates with their customers and grow their business overall.

At the end of the day, a merchant services program is designed to help you retain more customers and avoid getting lost beneath the competition. The right partner will be by your side, every step of the way, to make sure you experience the benefits and advantages you deserve. Contact us today to learn more or to talk about entering into a partnership with Electronic Merchant Systems.


Sources: PYMNTS.com, PYMNTS.com

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