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Transparent fee structures
The ve
The very point of salery point of sale
McAdam also noted that banks are helping small
businesses leverage faster payments initiatives. "Before
JD Power, I worked with FIS," he said. "Banks and the Fed
and the Automated Clearing House got the ball rolling and
fintechs were early movers, but now financial institutions
are definitely catching up."
Banking on digital McAdams pointed out that Square, PayPal and Stripe

traditional service providers rapidly followed suit.
By Dale S. Laszig simplified complex pricing structures, and banks and
DSL Direct LLC Payments industry veterans often opine about simplifying
pricing models, as Square did, and there are efforts to make
inancial analysts have called branch transforma- that happen throughout the market—but explaining fee
tion a wake-up call for financial institutions, but structures is just as important, he noted.
not all banks are hitting the snooze bar on their
F digital clocks. In fact, a recent J.D. Power survey, "Even if customers don't like the fees that they pay every
published Feb. 3, 2022, found big banks outrank fintechs now and then, they feel a whole lot better if they at least
in customer satisfaction. Paul McAdam, senior director, understand the fee structures and if they feel that the
banking and payments intelligence at J.D. Power, stated company is committed to the customer relationship," he
that small business customers gave banks high scores in said.
payment processing agility and chargeback management. Big banks, big hearts

"When we put fintechs side by side with the banks, banks McAdam summarized four key points of the 2022 study as
hold up pretty well, particularly with customer service and follows:
resolving problems," McAdam said. "Within the context
of all the other things we see at JD Power, the big thing 1. Satisfaction with merchant service providers:
that separates top-rated brands is satisfaction with fee Satisfaction improved by 23 points among merchants
structures, support and fee transparency." McAdam noted that obtain payment processing services from a bank,
that service is a second big differentiator separating big utilize card present payment acceptance channels,
banks from lower tiers, especially with telephone service and have annual business sales/revenue less than $1
problem resolution and IVR solutions. While fintech million.
banking providers like Chime, SoFi and Credit Karma
have awesome technology, tools and interfaces, generally 2. Satisfaction with cost of service: Satisfaction with
speaking, their customers don't have many problems, he communication and support relating to all types of
noted. fees are a critical priority for SMBs.

More than a number 3. Satisfaction with phone-based customer service:
Satisfaction with prompt service and resolutions
During our interview, I recalled when bank branches notably improved.
were closing nationwide and in my hometown. My initial
concern during this transformation was who would take 4. Satisfaction with faster payments: Satisfaction
care of me. Recognition based on a one-time password can with faster payments and same-day settlements is
only go so far. I want my bank to know who I am when I call reflected by a 14 percent increase in adoption rates.
in. However, my bank continued to do an amazing job with
my small business account. I may be a micro merchant, but McAdam also stated that SMB owners were pleased by
I'm a happy one. their banks' solicitous attention and services throughout
pandemic-related shutdowns. Banks took steps to inform
McAdam said big banks have historically performed well their customers of available assistance and access to
in small business banking and with helping businesses working capital, he said, adding that in addition to COVID
migrate from old card readers to cloud-based POS systems. relief measures, access to credit and accelerated funding
Noting that more can break down or go wrong in the card- times, banks provided SMB customers with supportive
present POS world, he said technology is becoming more communication, guidance and resources.
reliable, and service and support have improved.
Dale S. Laszig, senior staff writer at The Green Sheet and managing
Commenting on the most surprising survey response, director at DSL Direct LLC, is a payments industry journalist and content
McAdam said, "I've been doing surveys for 20 to 30 years strategist. Connect via email dale@dsldirectllc.com, LinkedIn www.
and have never seen anything go up 14 percent in one year, linkedin.com/in/dalelaszig/ and Twitter @DSLdirect.
but that's the increased percentage of businesses saying
they're now using faster payments."
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