When Your Bank Asks For Your Merchant Account

From time to time, we receive calls from clients to report that their bank has offered them “special incentives” to move their merchant account to the bank.  As a merchant services provider, we specialize in processing credit cards, providing check guarantee service as well as handling loyalty and gift card programs.  Basically, we handle the processing of how you get paid in a variety of payment methods.  We are experts at what we do.  The truth is, very few banks actually process credit cards.  They contract with companies such as Chosen Payments and then pass the cost of that outsourcing on to you.


Banks are really good at holding your money safe for you, providing safe deposit boxes in a secure environment and issuing competitively priced loans.  They are not experts at processing credit cards and promises of providing access to your money quicker because they are a bank are simply not true.  The process of moving funds between the bank that issued your customer’s Visa card and you as the merchant are complex as the money shifts through an interchange and swaps hands.  We provide next day funding.  Your bank may offer that as well but for a much higher fee than what we offer.

You wouldn’t go to a brain surgeon for a knee replacement so why go to a bank who may be able to do something but not be the best at doing the job.


As for so-called “special incentives” offered to you, if your bank truly values your business, you would be getting these same incentives without having to move your merchant account to them.  Be sure to ask them why they hadn’t been offered to you before.  Usually, when you receive an offer like this, it is because a bank analyst noticed how much money was being deposited into your account through credit card processing and seeks to capitalize on the opportunity.


Anytime someone approaches you to provide a quote to you for merchant services, please reach out to your Chosen Payments rep before you switch accounts to make sure any quote you take into consideration is truly comparing apples to apples.  Because we specialize in many vertical markets, our pricing is guaranteed to always be the lowest because of negotiated rates for the markets we serve.