As banks and payment processors look for new ways to attract and retain merchants, bundled services are becoming more common. U.S. Bank recently announced a bundled service that allows businesses to use mobile card readers and provides same-day funding and availability of funds.
This setup, however, still has all the standard processing fees.
The offering, delivered via a platform that integrates U.S. Bank’s business checking accounts and Elavon’s processing services, is part of a growing trend among financial institutions and processors to streamline merchant services by tying banking and payments together in one place.
While this is a great offer and speeds up funding, other companies offer similar programs that utilize banking as a service.
One such solution from Priority Technology Holdings offers same-day funding pre-settlement when money is tight.
We spoke with Eric Cohen, CEO of Merchant Advocate, to understand how this model works, what merchants should know before jumping in, and whether it signals real change or just a new wrapper on an old idea for the broader payments ecosystem.
Our chat with Eric Cohen is shared below.
Crowdfund Insider: Can you provide an overview of the new U.S. Bank offering and what sets it apart from traditional payment processing models?
Eric Cohen: U.S. Bank has introduced a bundled solution called Business Essentials, which includes a checking account, mobile card reader, and card acceptance with same-day access to funds at no extra program-specific cost.
Unlike traditional setups where banking and payment processing are managed through separate vendors, this is about convenience and control, giving the processor direct access to the business’s checking account for cash flow and treasury management.
This model works through U.S Bank’s relationship with Elavon and is less about innovation and more about integration. The real value here is the bundling of banking and payment services under one roof, which is convenient for small business owners, but not new. Other processors have been offering similar programs for years.
Crowdfund Insider: Even with bundled offers like U.S. Bank’s, why do hidden processing costs still catch merchants off guard?
Eric Cohen: While the US Bank’s offering may sound groundbreaking, it still doesn’t solve one of the biggest pain points for merchants: unpredictable and often misunderstood processing fees. These fees are typically the third-largest expense after labor and rent, yet few merchants fully understand what they’re paying for. There are interchange fees, assessment fees from the card brands, and markups from processors, among many other fees.
These costs slowly add up, and for high-volume merchants or those operating on thin margins, it can be the difference between profitability and a loss. Fee increases happen several times a year, and it’s not uncommon for merchants to be overcharged due to billing errors or misclassified transaction types, without them even realizing it.
Crowdfund Insider: For merchants who aren’t ready to switch processors, what other strategies can they use to reduce fees or improve transparency?
Eric Cohen: There are quite a few, and this is where education is critical.
Merchants should always request a detailed breakdown of their processing statements. If a provider resists, that’s a red flag. Look for hidden surcharges, tiered pricing structures, or non-qualified rates, as these are often ways processors sneak in extra fees.
It’s also crucial to understand interchange optimization, ensuring transactions are set up in a way that qualifies for the lowest possible rates. Using the right data fields and batching transactions properly can significantly lower interchange rates for business, corporate, and purchasing transactions.
Most merchants don’t realize that processing fees are negotiable, even with large providers. You can often get lower rates, eliminate junk fees, or secure better contract terms if you ask the right questions. The key is knowing what to ask for, which is usually the problem. The best option is to find someone that speaks the language of merchant services. This third party can audit your statements and identify errors, overcharges, and other optimization opportunities, recovering money for your business and reducing costs without switching providers or disrupting operations.
Crowdfund Insider: What are some common misconceptions merchants have about payment processing fees?
Eric Cohen: Merchants also misunderstand surcharging programs, believing they are a simple fix to recoup costs. There are strict rules around how and when surcharges can be applied, which vary by state and card brand. Non-compliance can lead to penalties or legal issues.
Another misconception is that newer payment methods, like contactless payments, digital wallets, or B2B virtual cards, are always more expensive to process. That’s not necessarily true. It depends on how the transaction is categorized and what backend systems are in place.
Crowdfund Insider: Do you think U.S. Bank’s approach will become more common among other banks or processors?
Eric Cohen: In terms of packaging, yes, but the underlying model is already in use. We’re seeing increasing pressure on processors to justify their fees and offer more transparent, value-driven solutions. With open banking, embedded finance, and fintech disruption accelerating, traditional providers are being forced to evolve.
What U.S. Bank is doing is smart. They’re not eliminating processing costs; they’re bundling services in a way that improves operational efficiency and usability. This model may ultimately push others to repackage similar offerings more competitively or transparently.
Crowdfund Insider: For any merchant reading this, what’s one piece of advice you’d give them today about processing fees?
Eric Cohen: Don’t assume you’re getting a fair deal just because you’ve been with the same provider for years. Processing is not “set it and forget it.” Review your statements regularly, ask hard questions, and don’t be afraid to bring in outside help to evaluate your setup.
Every dollar saved on processing goes directly back into your business. In a tough economic environment, that’s not just helpful, it’s essential.