There are many reasons why a business may seek out a combination of different suppliers, vendors, and service providers to help support their operations, but in some situations this approach may actually be detrimental to the success of the company over the long term. In the case of payment processing and merchant services, a single-source approach can make a lot of sense, and the advantages to the business can be quite significant.
No matter what type of business you operate, you’ll surely have multiple partners, vendors, suppliers, and support services that help you manage the many different aspects of operating your business each and every day. In some cases, these partners will serve a defined purpose to help drive your business forward. After all, a restaurant is probably not going to be able to use the same partner for both food supply and marketing support. However, there are other elements of business operations that make sense to consolidate with a single-source, such as payment processing, merchant services, POS equipment, and ecommerce platforms. In fact, there are many advantages to doing so.
To fully understand the scope of the impact that an all-in-one provider for payment processing and merchant services can have for a business, it’s important to first outline the various disadvantages that are often experienced by companies who are currently using a more fragmented approach to these types of business services.
The Disadvantages of Dealing with Multiple Vendors
There are several common challenges that every business has experienced in some way, shape or form as they seek to solve problems, improve efficiency, and get support from their various suppliers and partners. Some of these situations are related to various types of hardware and software, while others are related to business processes, both internal and external.
Multiple Statements and Multiple Fees
It’s not unusual for some suppliers and vendors to only handle a very narrow list of services or products, with everything else falling outside the standard packages and pricing. This means that to get everything you need to manage your inventory, process payments, deploy an ecommerce solution, coordinate rewards programs, and all the other tasks you require, you will end up with a long list of suppliers and vendors. Naturally, for every service provider you work with, there will be costs associated and likely some recurring fees for ongoing support. Handling all these different monthly statements and fee payments is a real hassle, and results in ballooning overhead costs and internal inefficiencies.
Fragmented Reporting and Missing Data Connections
When dealing with separate partners for different business tools and operational processes, there’s a significantly greater likelihood that the various systems won’t effectively ‘talk’ to each other. This creates disconnects in the analysis and reporting functions that are so critical to understanding how the business is operating. Under this type of structure, each independent system would need to be looked at individually, with analysis requiring substantial manual effort in order to get a complete picture of the success of the company. When you need insights into how your business is performing, the time required to obtain them can be a major hindrance.
Customer Service and Technical Support Challenges
When you encounter any kind of problem that requires a call to customer support or technical services, the responsibility then lies with you to determine which vendor or partner is the right one to call for that particular issue. The last thing you need when there’s a problem is confusion and wasted time trying to figure out if the problem lies with your POS system, your ecommerce platform, or something else. Calling the wrong vendor needlessly takes up your time and theirs. All of this adds up to lost revenue and decreased productivity, and certainly more stress and frustration for you.