Large banks are tops for customer experience beating payments specialists according to the JD Power 2020 Merchant Services Satisfaction Study.
Specifically, seven of the top 10 ranked providers are banks and three are payment specialists. But PayPal and Square are breathing down the necks of the banks.
Topping the respected JD Power survey is US Bank Payment Solutions with a score of 882. BB&T (873) ranks second ahead of the top ranked payments specialist, PayPal (871).
Square, Capital One, Bank of America rank next with Chase, Wells Fargo, Stripe and Citi rounding off the top 10.
US Bank Payment Solutions provides merchant services to its small business clients through its subsidiary, Elavon.
Merchant services providers are locked in battle to become small businesses’ preferred means of accepting credit card and mobile payments. And the good news for challengers is that many business owners are prepared to switch providers.
Some 27% of SMEs say they “definitely will” consider switching to another merchant services provider during the next 12 months.
Bank/merchants acquirer partnerships show promise according to JD Power. The Merchant Services Satisfaction Study finds the highest levels of customer satisfaction occur when banks are partnered with merchant acquirers.
Merchant Services Satisfaction Study: other highlights
Overall satisfaction with their merchant services provider is highest among e-commerce merchants (860). Overall satisfaction is significantly lower among physically based businesses that accept card present or digital wallet payments (808).
Small businesses that accept payments through mobile or wireless card readers score an average of 830. By contrast, those that use a credit card terminal attached to a point-of-sale system score 800.
“Traditional banks have a natural advantage in providing merchant services by virtue of their existing relationships with business owners.
“Similarly, payment specialists such as PayPal and Square have built strong brands,” says Paul McAdam, senior director, JD Power. “They provide small businesses with easy, reliable ways to accept a variety of card and digital payment options. They provide the technology and security a small business requires, along with fee structures that are easily understood.”