Bendigo Bank cards business enters new phase
Bendigo Bank’s credit card business entered a new era this week when the bank became a full service provider of credit cards through becoming an acquirer of the three major card brands – Bankcard, MasterCard and Visa.
This will bring pricing and service benefits to Bendigo’s business customers, or merchants, as the bank will now be able to provide this service in its own right.
Previously, merchant acquiring was offered through a third party arrangement, as Bendigo was a participating member of the Visa scheme only.
Chief Manager Card Division, Greg Devlin, said the move to join MasterCard and Bankcard would bring immediate benefits to the bank and its merchants, including:
- Operating efficiencies that will ensure the bank can provide its merchants with competitive pricing and quality service
- The passing on of the Reserve Bank’s credit card reforms, which will immediately be reflected in lower merchant service fees.
- Faster establishment of new merchant facilities.
- Controlling the service end-to-end will provide the bank with more opportunities to deliver innovations to merchants. “An example of this is the release of our new state-of-the-art Verifone 3750 eftpos terminal on which we plan to provide additional value-add services over and above the acquisition of credit and eftpos transactions,” Mr Devlin said.
“Those benefits will be felt not only by our merchants, but by the communities in which they operate,” Mr Devlin said.
“This makes today’s initiative of significant strategic importance, because it effectively further enhances the package a Bendigo Bank branch or Community Bank® branch can provide to the community.
“We would expect the pricing benefits we can now deliver to result in more capital being retained by local businesses for spending within their community.
“This will further improve the local economies in which we operate, ultimately producing greater success for our business.”
Bendigo’s customers would benefit from greater choice and an enhanced Rewards program.
Mr Devlin said becoming a card acquirer would also produce financial benefits to Bendigo Bank, as it will not be paying a third party to conduct transactions on its behalf.