Banks Have Ability to Win Back Payments Customers

Some payment providers like Square have been in the news recently for the increases in withholdings during the crisis; Square says the majority of sellers do not have to hold reserves in case of chargebacks; the practice could open an opportunity for banks to win back some customers; “There’s a lot in the media in terms of what’s happening, but we’re not withholding funds,” said Doug Mearkle, Head of U.S. Merchant Services Sales at TD Bank, to American Banker; banks typically have a larger relationship with customers, including lending and other services, which allow them to avoid the practice of holding reserves; online transactions do have higher rates of fraud, card-not-present fraud rates are 3.1% versus 1.2% for brick-and-mortar purchases; small businesses have been feeling the pain more than most during the pandemic and reserves remove much needed capital at times of stress; banks could have the ability to win back some customers lost in recent years by being more customer friendly. American Banker.

Todd is the Chief Product Officer of LendIt Fintech.

He is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists.

He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences.

He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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