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Processing with Banks Cost Merchants More Money

July 13, 2015

You spent years dreaming of owning a business, taking measures to bring that vision to life, conceptualizing, and executing every last detail. Finally, it’s time to set up your credit card processing, but where do you go?

 

Most people when getting set up with their Merchant Services go through their Banks or Costco, because it seems like a logical solution and it’s easy to just walk into a bank and get help. What you may not know is that by law, banks can’t actually process your payment. That’s right, banks have to outsource your payment because it has been deemed a monopoly. So, the bank goes through a Merchant Service Provider (MSP), who then must go through a Platform Company, who gets their rates directly from the major card brands like Visa/MasterCard. Phew!

 

What does all of this mean for the Merchant?

 

It means you are paying middlemen and all the unnecessary markups associated with a middleman!

 

Basically, every bank has their own MSP in which they refer business when you walk into their financial institution to get set up. The MSP then gives the bank a kickback.

 

Guess where that Kickback is coming from?

 

You guessed it. Your pocket!

 

The MSP tacks on an extra percentage to your rates to thank the banks for referring them all of the merchant business that walks through their door.  If you’ve been wondering why your rates are so high…now you know!

 

So, where can Merchants go to get the Best Rates?

 

Finding a good platform company is key to getting you the best rates possible.

 

Riverside Payments is a platform company who gets their rates directly from Visa/MasterCard. Whether you end up processing with Riverside or another provider, we welcome the opportunity to build you an apples-to-apples quote, so you can see exactly how much money we can save you by cutting out the middlemen.

 

You found this article for a reason.

 

Why pay middlemen your hard earned cash. Riverside can help put hundreds or even thousands of dollars per year back into your pocket!

 

Contact Us today to schedule your free, no obligation quote




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