3 Reasons Not to Use Your Bank for Credit Card Processing

When it comes to banking, it can often be beneficial for a company to seek services from the bank where they hold their business accounts. For example, a company that is a loyal customer to a bank may receive better terms on a business loan when they apply for the loan through their own bank instead of a competitor.

But it is not always a good idea to automatically turn to your bank for financial services. One area where a business should look outside of their bank is credit card processing. Here's 3 reasons why you should look elsewhere.

1. Lack of Specialization
Many banks offer credit card processing services, but this is not an area in which they specialize. Credit card processing is often seen only as a way to increase a bank’s revenue and the actual processing is outsourced to a third party, which results in higher fees for a merchant. Working with a company that specializes in just credit card processing is the best way for a company to ensure that they get the best service, and the most competitive rates.

2. Banks Are Not Set Up to Efficiently Process Credit Cards
A bank’s specialty is lending or storing money, neither of which help a company with merchant services. Most banks are not able to set up merchant accounts on multiple networks, so a business may get stuck working with a network that does not meet their needs. This can result in numerous problems, and much higher credit card processing costs over time.

3. Customer Service is Usually Not Up To Par
Since banks do not specialize in credit card processing, their employees usually do not have a good understanding of the unique issues associated with the credit card processing industry. If you have any questions or problems with your accounts, you will be referred to a representative that may not be able to help you. When you work with a company that specializes in credit card processing, you will have access to representatives that understand all aspects of credit card processing.