Friend or Foe – Reduced Fees for Combining Services

Is there really an advantage when a bank offers reduced fees for combining services?  We like to call this “friend or foe” because in many cases, this seems like a great offer and the bank is being your friend, or at least recognizes the value of you as their customer.


“I can save you a X points on your line of credit or loan if you contract your merchant services solution with us.”

If you are in the market for a loan, then this may be a good idea. Saving even .25% on a $25,000 business line of credit to help you expand your business in 2017 could be a good deal.

However, take a look at the whole picture.

Do you process more than $25,000 per year on your current merchant account when clients and customers pay for your products, services and consulting on credit card?

If you do, then the savings might not work out to your advantage.

They can easily make up a ¼ percent discount on your loan interest rate if they know that you are running more than the loan amount in annual credit card sales.


This is where the bank may actually be against your best interests. They tend to “make up the difference” somewhere else. Either in contract requirements, with a 2 or 3-year term and agreement for your merchant services or they just don’t give you their best rate on the credit card processing.

There are always choices in banking and financial services, just as there other in industries like seasonal services, restaurants and real estate.  Just as you can choose your lawn service provider, the location of dining and your own title agency in a real estate transaction – you can choose to keep your loan separate from other services your bank offers.

If you have questions, please ask. We know you have choices to make for your business and we can offer an objective review of your options to help you make the right decisions.

~ Mary Ann