But most people – and even most businesses – have no idea just how complex the credit card industry is.
Multiple parties for instance, are involved in a single transaction.
When a customer makes a purchase, the money is transferred from their bank to an acquiring bank.
Licensed members of card associations like Visa or Master Card, acquiring banks allow businesses to accept credit card payments from customers.
Only a handful of credit card acquiring companies exist in the U.S. And the top five, which include Chase and Bank of America, are responsible for approximately 80 percent of the total volume of card transactions nationwide.
Transactions are processed by a credit card processing company, a third party that handles the details of accepting credit and debit cards, whether in person, over the phone or online.
Thousands of credit card processing companies are contracted by acquiring banks, resulting in heated competition and oftentimes, deceitful sales practices.
Some credit card processing companies have misled business owners, promising incredible savings that never materialize, providing overpriced credit card processing products and increasing rates outside the terms of the original contracts.
And then businesses are stuck in long contracts with less than ideal terms.
This is why business owners should work with someone they trust, like a local bank.
At F&M Trust, we understand the complexities of credit card processing and believe businesses deserve the best the merchant credit card processing industry has to offer.
That’s why we partner with a credit card processor that delivers both competitive pricing and excellent service.
Why not partner with someone you know and trust?
Brian Reidell is the Vice President, Treasury Management Manager at F&M Trust.