Here is something that most merchants don't know. When you get the idea to start your own business what is one of the first things that everyone does? You probably open up a business checking account so you can pay vendors and clients can pay you. Many banks boast that they offer merchant services, but what most people don't realize is that most banks do not handle the credit card processing in house. Most banks have a "referral relationship" meaning that they sell their clients to a third party processor as an additional revenue stream.
So what is the big deal? Well, the banks portray the service as if it were in house, but you'll learn that this is a big fat lie if you ever start to have problems with your merchant account and need some help. Suddenly, your banker won't have all of the slick answers for you that they had before you signed your merchant contract. Also, with all of the bank buyouts, many banks are constantly changing their referral relationships so they might refer you to one processor today and try to convert you to a new one next month.
Be very careful who you give your business to in the merchant services world because you can risk thousands of dollars over trying to pinch a couple of pennies. If you are ever unsure about a potential relationship with a merchant account provider or have questions about the contract you are currently in you can always contact Ideal Cost by visiting www.idealcost.com.
