As a bank or credit union, finding the right merchant services partner is critical to expanding your service offerings, increasing non-interest revenue, and strengthening your relationships with business clients. However, not all merchant service providers are created equal, and while larger processors may seem like the obvious choice, they aren’t always the best fit for every financial institution.
In this blog, we’ll explore the key factors to consider when choosing a merchant services partner and why going with a smaller, more specialized provider might make more sense than working with a large processor.
1. Tailored Support vs. Call Center Experiences
One of the biggest challenges banks and credit unions face with large processors is the lack of personalized support. Large processors often treat financial institutions and their business clients as just another number, relying heavily on call centers for customer support. This can result in frustrating, impersonal service for your business clients, damaging the trust they have in your institution.
Smaller, specialized merchant service partners, like Merchant Processing Pros, offer dedicated support. Our clients work directly with a dedicated account rep who understands the unique needs of your financial institution and is readily available to assist you and your clients. With direct access to a small, responsive team, you won’t have to worry about your clients getting lost in the shuffle of a large call center.
2. Flexibility in Partnership Models
Larger processors often offer rigid partnership models that force your financial institution to fit into a predefined mold. This lack of flexibility can limit how you serve your business clients, especially if you want more control over the sales and support process.
On the other hand, smaller providers offer more flexibility. For example, at Merchant Processing Pros, we offer several partnership models to suit your needs:
- Agent Partnership: Your institution takes the lead on sales and support, maximizing revenue.
- Full Service Partnership: We handle all sales and support, allowing you to focus on your core services.
- Back-Up Partnership: We step in to support high-risk clients when your primary processor declines to work with them.
This flexibility allows you to choose the level of engagement that makes the most sense for your financial institution and its business clients, something that larger processors often don’t offer.
3. Specialization and Industry Expertise
Larger processors may have the resources to work with many clients across industries, but that doesn’t mean they have the specialized knowledge required to serve all businesses. This can be particularly problematic for your business clients in high-risk industries, such as e-commerce, telehealth, or travel, who may face rejection from large processors.
A smaller, more specialized partner like Merchant Processing Pros brings deep industry expertise, allowing us to cater to the specific needs of high-risk businesses. We offer tailored solutions, including Level 2 and 3 data optimization for B2B businesses, chargeback prevention with EMV technology, and support for industries that are often underserved by large processors.
4. More Flexibility in Risk Management
Larger processors tend to have stricter, less flexible risk management criteria, which can result in turning away clients that are low risk in banking but high risk in payment processing. This can lead to frustration for your financial institution and your business clients, especially when clients are declined for reasons that may not seem relevant to their actual business practices.
Smaller providers like Merchant Processing Pros can offer more flexible risk management strategies, ensuring that businesses aren’t unfairly rejected. We specialize in high-risk processing for industries that may not meet the risk tolerance of large processors, ensuring that no client is left without the services they need.
5. Relationship-Building Over Transactions
For large processors, the focus is often on high-volume transactions rather than building long-term partnerships. This transactional approach can leave your institution feeling unsupported, and it can be detrimental to your ability to foster strong relationships with your business clients.
Smaller partners prioritize relationship-building. At Merchant Processing Pros, we work closely with our financial institution partners, offering a boutique-style approach where we focus on the success of your clients as an extension of your brand. This relationship-driven strategy allows your institution to offer more value, improve customer retention, and increase revenue over the long term.
Conclusion: Why a Smaller, Specialized Merchant Services Partner May Be the Better Choice
When it comes to choosing a merchant services partner for your bank or credit union, bigger isn’t always better. Large processors may offer the promise of scale, but they often come with impersonal service, rigid partnership models, and a lack of flexibility. Smaller providers, on the other hand, offer personalized support, flexible partnerships, and industry expertise that can better serve your financial institution and its clients.
By partnering with a specialized provider like Merchant Processing Pros, you can ensure that your business clients receive the tailored service and support they need, helping you strengthen relationships, improve customer satisfaction, and drive non-interest revenue.
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