J.D. Power: Banks Continue to Outperform Nonbanks with Small Biz Merchant Services

In a study evaluating small businesses’ satisfaction with merchant services providers, J.D. Power found for the second year in a row that banks outperformed nonbank fintech firms and merchant acquirers. Bank acquirers scored 863 on a 1,000-point scale for overall satisfaction, followed closely by nonbank fintech companies like PayPal, Square and Intuit (854). Customers were most satisfied by arrangements in which bank acquirers partner with a merchant acquirer, with scores reaching 873 for customers benefiting from these arrangements.

U.S. Bank Payment Solutions was the highest-rated of the 31 providers studied with a satisfaction score of 882, followed by BB&T Merchant Services (873) and PayPal (871). As with last year’s study, satisfaction was higher among users of newer technologies, such as mobile card readers and cloud-based point-of-sale systems, and was substantially higher among e-commerce merchants than card-present merchants.