In a world saturated with misinformation and deceit, knowing the truth is paramount. This is doubly true in finance and banking, where maintaining credibility is essential.
Truth will always be your best strategy when dealing with anyone in finance. You can’t deceive your bank or payment processor. Far too many policies, procedures and safeguards are in place to make sure that a load of reality will come crashing down on your head should any shadiness come to light — which is bound to happen eventually. Time is the natural enemy of lies. The more time passes, the more likely it is that the truth will come out. That’s why, even beyond the ethical reasons, honesty is the best policy from a practical standpoint as well.
Honest businesses are seen as lower-risk, which can translate into more competitive rates, access to additional services and growth opportunities.
Be Transparent Right Off the Bat
Every relationship — personal, business or otherwise — is about trust. You can’t build trust if you lie your ass off on the first date, so to speak. Providing false information to your processor or bank might seem minor, but it could result in severe consequences later. Certain omissions, related to the nature of your content or your business, might lead to loss of service.
That’s right: you could absolutely lose your banking. I can’t tell you how many times over the last 20 years I’ve been called by a potential client in chaos mode due to a lost banking relationship. This has happened so many times that I’ve lost count. Fortunately, a trusted payment processor with solid relationships can be instrumental in rectifying such crises — but why let it get to that point?
Omissions: A Ticking Time Bomb
Did you know that in a significant chunk of marriages, one or both partners admit to cheating? Over 22% of men say they’ve cheated, and 14% of women admit it. Relationships can sometimes be repaired or saved after infidelity comes to light. However, walking in on your spouse in the midst of a passionate affair can often make forgiveness impossible.
What does all this have to do with banking? Imagine you’re the bank. You’re in a new relationship with a business, but unaware that this business omitted some very considerable details from its application. The business relationship goes on normally until one day, while routinely reviewing transactions and flagging unusual activity, the bank notices something amiss. The bank discovers that it has been lied to — lying by omission is still considered lying — and now your credibility is lost. Trust diminishes. In many cases, the bank’s terms and partnerships require that it discontinue business with a dishonest merchant.
The best insurance against sudden loss of service is being truthful from the start. Building solid long-term relationships with banks is the basis of long-term business, but you can only do that when processors know precisely what you are processing for, and how.
Mistakes happen, and in most circumstances you can recover from them. However, if a gaping omission or violation comes to light and looks intentional, you’re finished. That’s why, in finance, it is always better to ask permission rather than desperately scramble for forgiveness.
The Ripple Effect
Beyond the immediate consequences to you and your business, dishonesty can also create a ripple effect that impacts the entire industry. When one merchant engages in deceptive practices, it erodes trust in that particular sector. Historically, this has also made banks and payment processors more cautious and vigilant, leading to stricter underwriting standards and increased scrutiny. This, in turn, can make it more challenging for honest businesses to establish relationships and access the financial services they need to thrive.
In contrast, embracing truth and transparency can be a powerful differentiator. Truthfulness promotes a culture of accountability and ethical behavior within the industry. When merchants prioritize transparency, it sets a positive example for others, fostering an environment where integrity is valued and rewarded. This, in turn, helps to mitigate the prevalence of fraudulent activities, protecting the interests of both businesses and consumers. That’s why truth is so vital in the world of finance and payment processing.
Help Processors Help You
By demonstrating integrity, businesses and whole industries can build more substantial and enduring partnerships with banks and payment processors. When financial institutions see that a merchant is forthcoming, trustworthy and committed to compliance, they are more likely to provide favorable terms, personalized support and long-term stability. Honest businesses are seen as lower-risk, which can translate into more competitive rates, access to additional services and growth opportunities.
Upholding credibility through honesty and transparency is crucial for establishing and maintaining solid relationships with banks and payment processors. The consequences of dishonesty can be severe, undermining trust, damaging reputations and jeopardizing business stability, but the truth safeguards businesses from potential pitfalls and paves the way for long-term success and growth. The truth shall set you — and your business — free.
Jonathan Corona has two decades of experience in the electronic payments processing industry. As chief operating officer of MobiusPay, Corona is primarily responsible for day-to-day operations as well as reviewing and advising merchants on a multitude of compliance standards mandated by the card associations, including, but not limited to, maintaining a working knowledge of BRAM guidelines and chargeback compliance rules defined in both Visa and Mastercard operating regulations.