Merchant services: It’s so much more than card processing

When some bankers hear the term “merchant services,” the first thing that comes to mind is usually credit card processing. And while that’s a key part of the equation, it’s just one piece of a much larger puzzle.

Modern merchant services programs have dramatically evolved over the past several years. Today, they represent fully operational ecosystems; think of them as the “operating system” for how a business gets paid and manages day-to-day operations. This represents a major shift from the traditional view of merchant services and is exactly why financial institutions should pay closer attention.

The cost of only promoting credit card processing

A common misconception many financial institutions hold is: “Our clients already process credit cards, so we’re good.”  Unfortunately, this mindset can cause financial institutions to miss out on two massive opportunities: the first being deeper, more meaningful client relationships, and second being new recurring revenue streams.

Your business clients aren’t just looking for a way to swipe cards—they want comprehensive solutions that help them run and grow their businesses efficiently and profitably. They want tools that automate tasks, improve customer engagement and integrate seamlessly with their financial institution. That’s where a modern merchant services program comes in, and where your financial institution can become indispensable. Recognizing this shift opens the door to conversations that go far beyond payment terminals and straight into business strategy.

What do modern merchant services include? 

Today’s merchant services go far beyond traditional card processing. Here are some of the key tools that a modern merchant services platform typically offers business clients:

• Mobile payments: Enable businesses to accept payments anywhere, anytime with mobile payment acceptance, enhancing convenience and sales potential.
• Recurring billing: Perfect for subscription-based businesses, automating invoices and payments for steady cash flow.
• Invoicing tools: Simplify payment collection by sending professional, trackable digital invoices.
• Customer vaults: Securely store customer payment information to speed up repeat transactions and help improve safety.
• Gift cards and loyalty programs: Help businesses drive customer retention and increase repeat visits.
• Inventory and timecard management: Provide essential operational tools to streamline payroll, scheduling and stock control.
• Tax and reporting tools: Reduce administrative burden by automating sales tax calculation and financial reporting.

Each of these features plays an important role in helping businesses run more smoothly, and they all connect back to your financial institution. This creates increased deposit activity, additional revenue streams and stronger client “stickiness.”

Building loyalty through deeper engagement

As business clients adopt these diverse merchant services through your financial institution, they become more deeply embedded in your ecosystem. Rather than shopping around for rates or alternative providers, they’re building their success alongside your institution. This leads to long-term loyalty and a solid foundation for future growth.

How bankers can expand the conversation

The next time you’re in a commercial client conversation, don’t stop at the simple question, “Do you accept credit or debit cards?” Instead, try diving deeper with questions that uncover opportunities for additional services, such as:

• How are you sending invoices to your customers?
• Do you offer gift cards or loyalty rewards to encourage repeat business?
• How do you manage your inventory or employee timecards?

You might be surprised how many clients don’t realize their financial institution can help with these operational challenges. By asking better questions, you create openings for valuable conversations, helping to uncover solutions that serve both your clients’ needs and your institution’s goals.

Merchant services as a strategic growth tool

Merchant services have grown beyond a simple product line or revenue stream; they’ve become a strategic growth tool for financial institutions. When offered thoughtfully and comprehensively, merchant services not only boost non-interest income but also strengthen business relationships, improve client retention and support the long-term success of your commercial clients.

If you want to build stronger connections and grow your business banking portfolio, it’s time to think bigger when it comes to merchant services. Help your clients do more—and stay longer—by offering the modern tools that power their operations every day.