Merchant Services Advantages for Community Banks and Credit Unions

Merchant Services Advantages for Community Banks and Credit Unions

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

 

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 clients 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.

With the support of the right merchant services partner, your bank or credit union 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 financial institution to the next level.

Keep reading to learn more about how you can find business success with the right merchant services program.

 

Quick Merchant Services Breakdown

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 merchants and partners, we provide innovative, secure products and services including:

merchant services program allows your bank to provide these payment processing and acceptance solutions to your business clients. The right merchant services program will create valuable connections for both your clients and your bank or credit union. If you choose your partner wisely, the advantages you receive through a merchant services program can help your bank stand out from the competition.  

 

The Advantages of the Right Merchant Services Program

Merchant services should be advantageous for both you and your business clients. There is certainly plenty of opportunity for big benefits, if you have the right provider. Here are some of the advantages you should expect to experience:

 

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 bank accounts. Therefore, when you set up a new client 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 bank 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 bank at local banks, 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 solution 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 bank 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 Client Success Rates

Another advantage a merchant services program will offer is the power to help your business clients improve their success rates. For example, if your client 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 client 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 clients and avoid getting lost beneath the big bank 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.

 

Sources: PYMNTS.com, PYMNTS.com