An interesting consideration to make when working with a business is whom they’re owned by. The owners of a business typically make all of the important business decisions, and play a significant role in how a business operates; if you’re a business owner yourself, you know this first hand. Given this, it’s important to consider who the owner is of the payment processor you’re working with, and how this could impact the working relationship you form with a company.
There’s numerous payment processing companies operating in Canada today with different owners, but many fall into a few categories: bank owned, privately owned, or publicly owned. There’s a number of benefits to working with a bank backed processor that companies owned by other parties simply don’t offer.
Increased Cash Flow
One great benefit of working with a bank backed payment processor is the ability to have quicker deposits into your business account. Because your end-of-day revenues and bank account are operated by the same company, the delay that you may experience in having funds deposited into your account could be diminished. This allows you to have the funds you rely on quickly, and helps to ensure that you’re not waiting on systems out of your control to process transfers behind the scenes.
Better Fee Structures
When your business banking accounts and your payment processor are owned by the same company, you may be able to save on monthly fees from either one of the parties. On the banking side, you may be able to negotiate better rates for transactions in and out of your business account, as these deposits are being made by a company they own. From a payment processing perspective, you may be able to get lowered rates on terminal rentals or processing fees. Having these fees lowered allows your business to save money just by making sure you’ve partnered with the right team.
For more information on payment processing, check out our articles Tips for Transitioning to a New Payment Processing Company and What Else Can Your Payment Terminal Do For You?
The information in this article is provided solely for informational purposes and is not intended to be legal, business or other professional advice or an endorsement of any of the websites or services listed.