Small Businesses Need Dedicated Merchant Services; Big Banks Aren’t the Answer

Small business owners have a long to-do list, and while choosing a merchant services provider is essential, they may not have time to thoroughly research options. When a business owner can get merchant services from their current bank, convenience and proximity make a big bank the easy choice.

Common Problems With A Big Bank’s Merchant Services

Unfortunately, letting a big bank handle something as important to a small business’s wellbeing as merchant services could be a mistake. Here are some common problems that small business owners face when they trust big banks with merchant services.

Lack of expert assistance

When a small business owner has a specific problem with their merchant services, they may require help from an expert. Bank customer service representatives are trained to handle a set of general issues from their customers, none of which may have to do with merchant services. Without a working knowledge of merchant services, a customer service representative is ill-equipped to solve a problem unique to a specific small business.

No customer service outside banking hours

Business owners running a company that’s open 24/7 need access to reliable merchant services customer service. Gas stations, pharmacies, grocery stores, and restaurants may be in the middle of a holiday or weekend rush when their merchant services systems crash.

Without access to 24/7 specialized customer service, a business may have to close while temporarily solving the problem. Banks that offer round-the-clock customer service often outsource that service. Hence, a business owner ends up trying to solve a crucial technical problem with someone located on the other side of the world.

Confusing statements and hidden fees

Understanding a merchant services statement and discovering the hidden fees presents a challenge for business owners working with big banks. A monthly merchant statement contains important information that could help business owners make better decisions about running their company.

The fees section could be especially troubling for small business owners. Some banks give fees creative names that make those fees appear legitimate, but in actuality they are not. Some banks are known to charge hefty annual fees and fees to have statements delivered in the mail.

Introductory rates that slowly rise over time

Banks may offer new merchant service accounts at an introductory rate, with incremental increases over time. While payment networks like Visa and Mastercard typically raise rates annually, business owners who use their bank as a merchant services provider could see more frequent incremental price increases. Credit card processing fees and costs set by the bank may go up after a certain amount of time.

Banks advertise merchant services to current account holders, but big banks are not the best place for a business to get merchant services. Business owners often pay premium rates for access to essential merchant services when they accept an introductory offer from their bank. In the span of just a few months, their rates could increase to match some of the highest in the industry, and the business owner may be stuck with expensive equipment and a contract that they’ll pay hefty fees to break.

Here’s how Spike Financial can help:

• We offer customized plug-and-play merchant services solutions with a one-time equipment fee that allows a company to process customers’ credit and debit card payments.
• Our 24/7 Texas-based merchant services experts are ready to answer questions from our customers any time of the night or day. Spike Financial’s customer service team works through holidays, as well.
• We can help you understand your current merchant services plan. We’ll even analyze your merchant services statement at no cost to you.