| In the past, the term “merchant services” essentially meant credit card processing. Today, it has evolved into much more than that. Check processing, mobile phone applications and remote capture technology are all part of the merchant services world, and all add value to a business’s bottom line. |
“As technology expands, it becomes easier and more effective for companies to complete transactions, reduce costs and receive payment quickly,” says Michael R. Meola, Vice President of merchant sales for FirstMerit Bank Merchant Services. “It’s all about enhancing cash flow.”
Whether your business model is traditional retail, business-to-business or E-Commerce, there are benefits to talking with your bank about merchant service products.
Smart Business spoke with Meola about how changes in merchant service capabilities can create efficiencies, enhance customer service and potentially offer cost savings.
What are some of the latest advances in merchant services?
There have been major improvements to check processing. If you go to the bank and deposit a check, a ‘hold’ could be placed on the funds until the check clears — a process that could take two to ten days. With certain check products that exist in the merchant world, you have the ability to receive funding by the next business day, without actually taking the checks to the bank. The merchant terminal converts the check into an electronic item through a process called electronic check acceptance. A sales associate would hand the check back to the customer, who would then sign a credit card receipt. The check is then processed as an electronic item through the merchant’s credit card terminal. This process can offer a cost savings to the business by not having to send someone to the bank to make a deposit.
There are also check processing capabilities called remote deposit capture terminals. It’s not a credit card terminal, but a device which simply takes an image of a check, creates an electronic file and forwards it to the bank for processing. Again, no one has to physically go to the bank, potentially reducing expenses for the merchant or business.
How are mobile technologies impacting merchant services?
In retail sales, there are new iPhone and BlackBerry applications for which the device itself can be programmed to process credit cards. Imagine you’re in a store and an associate pulls out an iPhone and swipes your card right there. Customers can pay for transactions where they stand. That’s the environment we’re in. By the time they walk back to the register, the receipt is printing. It provides great customer convenience, and that service will hopefully bring customers back.
This technology assists businesses in non-traditional sales, such as residential and commercial contractors. These businesses would no longer have to generate an invoice and wait for payment. If you had an iPhone or BlackBerry with credit card processing capabilities you could get paid today. The invoice is paid on the spot, eliminating the wait for payment, and the resulting cash flow enhances the bottom line.
These capabilities can also help a company better manage its receivables. By accepting credit cards as payment, it eliminates the need to perform due diligence to determine if a customer is creditworthy.
How can these technologies assist companies who do business in an E-Commerce environment?
No longer does a business have to pay extensive overhead for a brick-and-mortar location. Many companies use the phone or the Web to drive business. The Web, in particular, has become very cost-effective, with companies using credit cards as the only source for payment. Credit card processing in an E-Commerce environment creates efficiencies and reduces operating costs while not having to maintain a storefront.
How do these efficiencies affect businesses?
Mobile technologies provide the merchant a lower fee structure, resulting in lower transaction costs. E-Commerce businesses are able to conduct business without having the expense of the traditional brick and mortar. The bottom line: these advances in technology drive customer satisfaction, offer added convenience and provide efficiencies and cost savings.
What are some of the features and benefits of FirstMerit Bank’s merchant services?
Some of the features include:
Community-based sales and service teams (unique).
No out-of-country or third-party call center.
Alternative product offerings, such as telecheck and gift cards.
Often next-day availability of funds.
Online access of credit card transaction processing information.
Competitive pricing alternatives.
Benefits include:
Relationship based — ongoing assistance when needed.
Assistance with PCI compliance.
Assistance with fraud and risk mitigation.
Training for optimal card processing practices.
MICHAEL R. MEOLA is Vice President of merchant sales for FirstMerit Bank Merchant Services. Reach him at (330) 996-8036 or [email protected].
