Why Your Favorite Big-Box Stores Want to Cut Out the Credit Card Middleman
Something big is happening in payments, and most people are not paying attention. Major grocery chains like The Giant Company, Giant Food, and Stop & Shop are rolling out a new way for customers to pay called pay-by-bank. Instead of using a credit or debit card, customers link their bank account directly and pay from it at checkout.
There are no card networks involved. There is no interchange and no middle layer. Consequently, the money moves directly from the customer’s bank account to the merchant. This is not a small test. This initiative is being powered by Fiserv and rolled out across in-store, online, and mobile platforms, with thousands of users already enrolled.
The Real Driver Behind Payment Innovation
What is really driving this shift? The answer is processing fees. Large retailers are tired of paying interchange and network fees on every transaction. Therefore, they are doing what large, sophisticated businesses always do. They are finding alternatives that give them more control and reduce their costs.
This is the same problem that small businesses deal with every day. The only difference is the scale of the operation. In fact, we are already seeing similar strategies at the small business level through dual pricing, cash discounting, and other approaches designed to offset or reduce processing costs.
A Signal of Shifting Payment Economics
This is not a coincidence. Instead, it is the same underlying issue showing up in different ways. When large retailers start rolling out new payment methods like this, it is not just a trend. It is a signal that the traditional card model is being challenged.
Furthermore, it is a signal that merchants want more control over how they accept payments. It proves that the economics of payments are continuing to shift. This movement is not going away. In fact, it is going to accelerate as more businesses seek to protect their margins.
Why Small Businesses Should Take Action
Small businesses should not sit on the sidelines and wait for large retailers to figure this out. There are already practical ways to reduce processing costs, structure pricing more effectively, and improve how payments are handled. The big players are simply validating what smaller businesses have already started doing.
If you are a business owner and you have not taken a close look at your payment setup recently, it is worth asking whether there is a better way to approach it. Because the industry is changing, your strategy should change with it.
Explore New Strategies for Your Business
Our team is always happy to have a conversation and walk through these changes with you. Whether you want to explore options like dual pricing and cost reduction strategies, or simply understand what is changing in the industry, we are here to help.
Call us or visit our website to request a review of your current payment setup. We will show you how to leverage these industry shifts to reduce your costs and support your long-term growth.
☎️(978) 276-9300 📧[email protected]
Are You Paying Too Much for Credit Card Processing?
Why Merchants Overpay Many business owners assume their processing rates are fixed. They see a percentage on a statement and think that is the cost of doing business. Most statements are designed in a way that makes it difficult to see the fee breakdown, which allows hidden markups and unexpected
Are Your Merchant Services Eating Into Your Profits?
The Problem with Hidden Fees Many business owners are told that their payment processing costs are fixed. Recurring fees, complex statements, and long-term contracts are treated as inevitable. Then they wonder why revenue slowly disappears and reconciliation feels impossible. That approach is broken. Merchants overpay not because they are reckless,
Why Flat-Rate Pricing Feels Safe but Often Costs More Than You Think
A Closer Look at Why “Simple Pricing” Isn’t Always the Most Cost-Effective Ever wonder why flat-rate pricing feels simple and safe but somehow ends up costing more than it should? Many business owners fall into this trap. Flat rates look predictable and straightforward. One number. No math. No surprises. But
Do You Really Know What You’re Paying for Credit Card Processing?
Understanding Your Credit Card Processing Rate Many business owners see a single percentage on their merchant statement and assume it is a fixed cost. Most statements are confusing, with multiple fees hidden in fine print. One business owner recently told us he saw “3%” and thought that was all he
