Business Account Opening
A business opens its first commercial checking account. During onboarding, the banker may learn that the owner still needs a way to accept cards or online payments.
Bank Referral Partnerships
Bank Merchant Services Referral Partnerships for Commercial Banking Relationships
Bank merchant services can complement business checking, treasury management, and commercial banking relationships by helping customers explore payment processing and payment acceptance technology. Valued Merchant Services works with qualifying community banks, regional banks, and commercial banking organizations interested in offering these additional resources through approved referrals.
From opening a business account to expanding an established commercial relationship, banks encounter opportunities to recognize customer payment needs. A suitable referral program can extend that relationship while creating potential noninterest revenue under agreed terms.
The objective isn't to replace the bank's existing financial services. Instead, an appropriate partnership gives interested business customers a way to evaluate relevant merchant solutions while the bank maintains its institutional relationships and oversight responsibilities.
Partnership structures, due diligence, permitted compensation, and institutional participation require individual review and an approved written agreement.
Since 2006
VMS merchant services experience
50 States
Nationwide business reach
Bank-Focused
Commercial relationship opportunities
Defined Roles
Approved institutional arrangements
Understanding the commercial banking opportunity
What Is a Bank Merchant Services Referral Partnership?
A bank merchant services referral partnership is an arrangement in which a financial institution introduces eligible business customers to an independent payment services provider through an approved process. VMS can then evaluate the merchant's payment acceptance requirements, processing expenses, and available solutions.
The parties establish referral procedures, communications, responsibilities, service expectations, and any permissible compensation through a written agreement. Consequently, the bank can consider a model that complements existing business relationships without necessarily operating its own merchant acquiring platform.
A Referral Program Is Not the Same as Merchant Acquiring
A referral-oriented arrangement generally involves introducing interested commercial customers. By contrast, a bank-sponsored acquiring program or payment facilitator relationship can involve substantially different operational, network, financial, compliance, and contractual duties.
Therefore, an approved VMS referral relationship should not be understood as automatically establishing a bank-branded acquiring program or transferring acquiring obligations to the bank. The actual responsibilities must be evaluated and documented.
Four natural commercial customer milestones
MOMENT 01
MOMENT 02
MOMENT 03
MOMENT 04
Where Bank Merchant Services Fit Into the Commercial Customer Lifecycle
Banks do not need to turn every customer interaction into a processing discussion. Instead, the strongest introductions arise when businesses already have relevant payment acceptance or reporting needs.
Treasury Services Review
A cash management discussion may reveal questions about payment settlements, reconciliation, ACH collections, or transaction reporting.
Business Expansion
A customer adds a new location, expands ecommerce activity, or introduces another payment channel. As a result, additional technology or merchant processing services may be needed.
Ongoing Relationship Review
An established business asks whether processing expenses or existing equipment deserve review. With authorization, VMS can discuss possible alternatives.
Appropriate introductions:
Customer interest and
institutional procedures
should guide participation.
Maintaining a bank account
does not automatically
authorize transferring
customer information or
making unsolicited referrals.
Complementary services with distinct responsibilities
THE BANK'S RELATIONSHIP
VMS AND APPLICABLE PAYMENT PROVIDERS
Bank Merchant Services, Treasury Management, and Commercial Deposits: How the Roles Differ
Accepting a customer payment, processing a card transaction, settling the proceeds, and managing the resulting cash balance are connected activities. However, they are not interchangeable.
A referral relationship can connect commercial deposit customers with payment acceptance solutions while preserving the bank's established roles.
Commercial Banking Services
- Business checking and deposit accounts
- Treasury and cash management products
- Commercial lending decisions
- Deposit account terms and funds availability policies
- Bank-controlled customer servicing and compliance
- Institutional vendor and relationship oversight
Payment Acceptance Services
- Authorized processing statement reviews
- Available card acceptance solutions
- Eligible terminals and point-of-sale tools
- Available ecommerce and mobile payment options
- Merchant application coordination
- Agreed merchant implementation and support
Settlement Routing Must Be Reviewed Separately
A bank may want to preserve a commercial customer's deposit relationship. Nevertheless, a payment processing referral does not guarantee that settlement funds can be directed to a particular bank. Processor requirements, merchant eligibility, underwriting, contractual terms, and applicable settlement arrangements must be considered.
Important distinction:
The bank's deposit
relationship and the
merchant's processing
agreement are separate.
Neither customer
retention nor payment
settlement into the
referring institution
is guaranteed.
Business customer situations
Four Commercial Customers. Four Reasons a Bank Might Make an Introduction.
A business customer's payment needs vary with its industry, size, location, and operating model. For example, a restaurant opening its doors has different needs from a professional firm collecting recurring invoices.
New Restaurant Depositor
A restaurant owner opens a commercial checking account ahead of launch. During the conversation, the banker learns that the business has not selected a POS system. With permission, an introduction allows VMS to discuss eligible payment and restaurant technology options.
Retailer Adding Another Store
A regional retailer establishes a new location and asks about managing payments across stores. Consequently, merchant equipment, reporting, and processing requirements may need review without changing the bank's deposit relationship.
Professional Firm Seeking ACH
A professional services company wants clients to pay invoices electronically. The banker can first explain the bank's own treasury offerings. Where appropriate, VMS can discuss separate available payment collection services.
Established Business Reviewing Fees
An existing commercial customer questions its processing expenses. An authorized statement review may help identify relevant charges, transaction characteristics, and possible alternatives. However, savings are not guaranteed.
Programs that fit different banking organizations
MODEL A · INTRODUCTION
MODEL B · BUSINESS TEAM
MODEL C · INSTITUTION
Three Bank Merchant Services Referral Models Worth Discussing
The right structure depends on a bank's commercial customer base, branch network, staffing, existing vendors, risk tolerance, and strategic goals. These examples describe possible discussion models, not guaranteed VMS contractual offerings.
Banker Referral Program
Authorized relationship managers introduce interested commercial customers through an established permission-based process. VMS then conducts agreed merchant services discussions.
Key considerations: Customer consent, employee procedures, lead attribution, service ownership, and appropriate disclosures.
Commercial Banking Team Program
A bank may consider a more structured approach involving business development, treasury management, or commercial relationship teams.
Key considerations: Department responsibilities, branch participation, management reporting, training, and internal approvals.
Institution-Level Referral Agreement
A financial institution evaluates a broader written arrangement addressing referral eligibility, possible compensation, service standards, and ongoing oversight.
Key considerations: Vendor due diligence, contractual safeguards, risk management, performance reviews, and termination.
Referral Revenue Versus Acquiring Revenue
One-time referral fees and potential recurring revenue sharing are different from operating a merchant acquiring business. Any eligible revenue calculation should clearly define qualifying merchants, payment events, compensation formulas, exclusions, and payment conditions.
Moreover, a signed referral agreement must not be interpreted as conferring processor status, network sponsorship authority, exclusivity, or other commercial rights that have not been expressly established.
Payment acceptance options for commercial clients
Bank Merchant Services Can Connect Customers With More Than Card Terminals
A bank's commercial portfolio may include retailers, hospitality businesses, contractors, ecommerce sellers, professional practices, and other industries. Their payment acceptance requirements are not identical.
VMS provides or facilitates merchant processing, payment technology, and related business solutions. Therefore, an appropriate review starts by understanding each merchant's transactions, equipment, software, and operational priorities.
Actual products, fees, integrations, financing, underwriting, and settlement terms depend on eligibility, provider capabilities, approvals, and applicable agreements.
Processing Statement Reviews
Merchant Card Processing
Point-of-Sale Systems
Countertop Payment Terminals
Contactless Acceptance
Mobile Payments
Ecommerce Gateways
Virtual Terminals
Available ACH Services
Multi-Location Payment Needs
Third-party risk, customer trust and bank responsibilities
Bank Merchant Services Partnerships Require Appropriate Due Diligence and Institutional Oversight
A financial institution must evaluate a proposed referral relationship according to its own risk assessment, supervisory obligations, and policies. The process should consider more than referral compensation because customers may associate an introduction with the bank's reputation.
Evaluate the Relationship Before Launch
Planning should establish the program's scope, participating teams, intended outcomes, and available internal resources. For example, a limited introduction program may present different risks from a bank-branded technology arrangement.
1. Third-Party Due Diligence
Determine what information is appropriate to evaluate the provider's business, experience, financial considerations, security controls, services, and operational capacity.
2. Customer Contact and Consent
Document who may make introductions, how interested customers consent, which disclosures apply, and how provider communications are presented.
3. Confidentiality and Information Security
Deposit balances, lending files, login credentials, private financial records, and other protected information should not be disclosed merely to create merchant referrals.
4. Compensation and Contract Terms
Address permitted referral fees, ongoing revenue calculations, reporting, payment conditions, service standards, liability, and termination in a written agreement.
5. Merchant Support and Complaints
Identify responsibility for merchant applications, billing questions, equipment, technical support, service disputes, complaint escalation, and communications.
6. Monitoring and Program Exit
Establish appropriate performance reviews, responsible contacts, incident escalation, contract changes, termination rights, and transition expectations.
Applicable Regulatory Guidance
Federal banking regulators have published guidance addressing risk management throughout the lifecycle of third-party relationships. However, a particular bank must determine the appropriate application based on its activities, charter, regulatory status, and relationship risk.
Authoritative resource:
The FDIC, Federal
Reserve, and OCC
published
interagency guidance on
third-party relationships
and risk management
.
Banks should
evaluate applicable
regulatory expectations,
policies, and
requirements independently.
This resource
does not represent
government approval
or endorsement
of VMS.
An institutional program with defined responsibilities
How a Bank Merchant Services Referral Program Can Move From Discussion to Implementation
The objective is not to burden commercial banking staff with complicated payment processing sales responsibilities. Instead, an approved referral relationship should establish a useful path for interested business customers.
01
Explore Strategic Fit
Discuss commercial customer segments, bank locations, existing treasury services, and institutional objectives.
02
Review Risk and Terms
Determine necessary approvals, diligence, privacy rules, compensation eligibility, and written obligations.
03
Prepare Participating Teams
Establish authorized introduction language, contact permissions, referral tracking, and service escalation procedures.
04
Monitor the Relationship
Assess appropriate referral activity, merchant experience, provider performance, and contractual responsibilities.
Customer Experience Should Stay Central
Program reporting may help a bank understand participating locations and qualifying referrals. Yet volume alone does not determine whether the relationship is successful.
Therefore, institutions may also consider responsiveness, customer satisfaction, service issues, staff workload, oversight findings, and whether the arrangement supports the original business objective.
Merchant services experience since 2006
A Bank's Introduction Carries Institutional Trust.
Founded in Idaho in 2006, Valued Merchant Services serves businesses nationwide with payment processing, payment technology, and related business solutions.
The company is led by co-founders Sean Ruppel, CEO, and Chris Del Grande, President. VMS emphasizes consultative service, practical solutions, and long-term merchant relationships.
We recognize that a referral from a commercial banker is not simply a sales lead. It can carry the weight of an established financial relationship. As a result, program design should emphasize appropriate customer communications, clearly assigned responsibilities, and accountability.
Compare our Credit Union Referral Partnerships or explore the VMS Business Referral Partnerships program .
Illustrative image, not a photograph of an actual bank partner.
Common questions from banks and commercial banking leaders
Bank Merchant Services Referral Partnerships: Frequently Asked Questions
These answers explain referral models, commercial customer relationships, institutional oversight, compensation, and merchant support responsibilities.
What is a bank merchant services referral partnership?
It is an approved arrangement in which a bank introduces interested business customers to a separate payment services provider. Written terms define responsibilities and any permitted compensation.
Can a community bank offer merchant referrals without becoming a processor?
Potentially. A referral-oriented arrangement may focus on business introductions while applicable providers handle agreed merchant activities. The bank must still assess its legal, risk, and oversight responsibilities.
How does merchant processing complement business checking?
Business checking supports the deposit relationship, while merchant processing addresses payment acceptance. The services may complement each other without being interchangeable.
Can banks earn ongoing revenue from merchant referrals?
Eligible arrangements may include one-time fees, continuing revenue sharing, or another approved structure. Actual payments depend on legal eligibility, bank policies, contract terms, and qualifying merchant activity. Revenue is not guaranteed.
Does a referral guarantee merchant settlements at our bank?
No. Settlement account eligibility depends on provider, merchant, underwriting, and contractual requirements. Deposits at a particular institution cannot be guaranteed.
Can treasury management employees refer merchant customers?
Potentially, under an approved program. Treasury teams may encounter payment acceptance questions while working with commercial customers. Referrals should remain distinct from bank-provided treasury services.
Do bankers have to sell payment processing products?
Not necessarily. A referral-only relationship may allow authorized bankers to recognize interest and introduce customers. VMS handles merchant conversations within its agreed role.
What customer information is necessary for a referral?
An initial introduction may require only appropriately authorized business contact details and the customer's expressed interest. Confidential banking and lending records should not be shared unnecessarily.
Who determines merchant underwriting and approval?
Applicable processing and acquiring providers determine merchant eligibility and approval. VMS may coordinate applications within its authorized role. A referral does not guarantee approval.
What is the difference between a referral and acquiring partnership?
A referral relationship generally focuses on introductions. A bank-sponsored acquiring arrangement may involve additional payment network, operational, contractual, financial, and regulatory obligations. They should not be treated as equivalent.
Can customers keep their existing point-of-sale equipment?
Sometimes. Compatibility depends on the actual software, terminals, gateway, processor, and provider requirements. Existing equipment cannot be guaranteed to work with every processing arrangement.
Can VMS review a commercial customer's processing fees?
With authorization, VMS can review relevant merchant processing statements, transaction characteristics, pricing components, and eligible alternatives. Savings are not guaranteed.
What should a bank evaluate during third-party due diligence?
Depending on the arrangement, relevant topics may include planning, financial and operational risk, provider capabilities, information security, contractual obligations, complaint handling, monitoring, and termination. The institution determines its appropriate review.
Can multiple bank branches participate?
An approved arrangement may define participating branches, commercial teams, authorized employees, referral tracking, and support procedures. Participation requires institutional approval.
Who handles support for referred merchants?
Agreements should define responsibilities for merchant applications, processing questions, equipment, escalations, complaints, and communication. Banks should retain appropriate oversight.
Can a regional bank coordinate an institution-wide program?
VMS can discuss program structures for banks with multiple branches or commercial divisions. Actual arrangements depend on institutional review, eligibility, operational fit, and written terms.
Are merchant processing services FDIC-insured bank deposits?
No. Merchant processing services are not themselves FDIC-insured deposit accounts. Deposit insurance treatment, if applicable, relates to eligible deposit relationships under separate legal and regulatory rules.
How can our bank discuss a partnership with VMS?
Complete the inquiry form below or call 208-243-0818. Describe the institution, commercial customer base, branch structure, and program objectives. An introductory discussion is nonbinding.
Explore a commercial banking referral relationship
Let's Discuss Bank Merchant Services Partnerships That Fit Your Institution
Whether you represent a community bank, regional institution, or dedicated commercial banking team, we'd welcome a discussion about the businesses you serve and the payment needs they encounter.
Tell us about your branch network, commercial services, customer industries, and the type of referral relationship you want to explore. Please don't submit confidential customer account records or private banking credentials through this form.
Form not displaying? Open the referral partnership inquiry directly.
Submitting an inquiry does not establish a bank referral relationship, confer regulatory approval, guarantee compensation, or authorize disclosure of protected customer information. Any arrangement requires appropriate institutional review and a written agreement.
Valued Merchant Services provides or facilitates merchant processing, payment technology, and related business solutions subject to availability, merchant eligibility, underwriting, provider approvals, and contractual terms. VMS is not a bank and this page does not imply an existing relationship with any particular bank, regulatory endorsement, or government approval. Merchant processing is not itself an FDIC-insured deposit product. Banks remain responsible for evaluating their own institutional authority, third-party risk, customer confidentiality, marketing and consent practices, contracts, supervisory obligations, and approved program scope. A referral relationship does not automatically establish acquiring, processing sponsorship, settlement-account routing, exclusivity, or bank-branded payment services. Permitted referral compensation requires an approved written agreement and qualifying activity. Merchant approval, processing savings, referral revenue, customer retention, and deposit routing are not guaranteed. This page is informational and is not legal, regulatory, banking, or compliance advice. Images are illustrative.