// Financial Institution Insights
Consider these attributes before selecting your merchant services partner.
Once you’ve made the decision to offer a merchant processing solution, the next question to ask is, “Who is the right merchant partner to meet the needs of our financial institution?”
Selecting a merchant processing partner can be tedious and overwhelming. There are several providers in the industry, each with advantages and disadvantages. Narrowing down the criteria can help make this task easier. Below are a few important attributes to consider as you begin the decision-making process:
· The culture of your organization and how it matches up with the partner.
· The capacity and resources available to meet the demands from a sales, marketing and innovation perspective.
· The extent of services and if the partner is a reseller of core processing services.
· The longevity and experience the partner has in the industry.
· The reputation of the partner and what other businesses they work with.
As you may have noticed, revenue share was not mentioned above. While it’s important to consider, a simple comparison of what providers are willing to pay is not a fair evaluation. Since revenue share can be constructed differently among providers, further discussions will be needed to better understand how the revenue share aligns with your organization. For example, Partner ABC may agree to pay ‘X’ for any approved merchant, while Partner 123 agrees to pay “Y.” You would assume the provider paying more would be the logical choice. However, depending on what X or Y is can impact the provider’s ability to be competitive in the market. The more revenue the provider pays per deal makes them less competitive with each merchant you send their way.
A key attribute to consider is the partner’s ability to attract and retain customers, while producing solid revenue for your organization. Providing a satisfied customer experience, innovative and trusted solutions, competitive pricing and a good working culture will allow the partnership to grow and prosper.
Contact me today for more information on how Elavon Financial Institution Solutions can provide a successful merchant processing solution to your organization.
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