| Traditionally, credit card processing has been the | | | | internet credit card payment gateways. This |
| domain of banks. Most merchants already have | | | | allows businesses to process at very low cost. |
| accounts with banks, and banks have never had | | | | Third party agencies have hi-tech equipment, |
| trouble finding takers for their card services. The | | | | secure technology and high quality internet |
| point-of-sale machines at the merchant's end are | | | | connections to process large volumes of |
| easily linked to merchant bank accounts. The bank | | | | transactions effectively. They can offer the same |
| then processes the transaction for a fee. | | | | or better services as banks at compelling prices. |
| Innovative technology and the internet have | | | | Why look around when you are satisfied with the |
| enabled the rise of third party credit card | | | | bank? |
| processing agencies. These agencies offer | | | | There is no harm in continuing with the card |
| competitive prices and faster processing time. | | | | processing services of banks. In fact, many |
| Banks are now facing heavy competition with | | | | businesses may not want to change from banks |
| many merchants moving their accounts to the | | | | to third party processing agencies because of the |
| more economical third party credit card | | | | longevity and comfort of the business relationship. |
| processing firms. | | | | Some businesses prefer to keep things simple by |
| Third party agencies are being preferred over | | | | having one provider service all their financial needs. |
| banks for many reasons. Some of these are | | | | But, they may be missing out on more |
| discussed below. | | | | economical options. |
| Businesses prefer multiple service providers | | | | Take time out to get price quotes from third |
| Banks made the mistake of getting too | | | | party agencies. Check out the kind of services |
| complacent with their market share in credit card | | | | that are offered such as internet processing and |
| processing services. They wrongly assumed that | | | | signature-less processing. If nothing else, you will |
| businesses would prefer the bank as its processor | | | | get a better idea of the services you pay the |
| solely because they have accounts with them. | | | | bank. If an agency offers the same services at |
| Businesses may not prefer one provider for all | | | | lower costs, you can at least ask the banks to |
| their financial solutions. However, as banks | | | | explain why their charges are higher. This also |
| monopolized the credit card processing market, | | | | pushes banks into a more competitive mode. |
| businesses had no choice. The arrival of third | | | | It is always good to have an idea of the going |
| party processors changes things. Third party | | | | market rates for any service. Surveying the |
| agencies offer better services at lesser cost. | | | | services and rates of third party credit card |
| Faster service at lower cost | | | | processing agencies helps business owners |
| The internet has been the root cause of changing | | | | understand and question the rates charged by |
| market scenarios. Third party credit card | | | | banks. Saving on processing fees is bound to |
| processing agencies offer faster service because | | | | improve the profit margin if a business has high |
| the internet allows fast, inexpensive and accurate | | | | credit card sales. |
| processing. Most businesses can afford to install | | | | |