To further tap the small business market, the Illinois Credit Union League has partnered with card solution firm Primax to serve as a merchant and cash advance provider for more than 3,100 credit unions.
Formed through the Illinois CU League Service Corp., Primax can help CUs set up merchant programs for businesses with various outsourcing options, according to the league. An agent program also allows CUs to refer their merchants to Primax, who then takes care of the details and operations support that allows the merchant to set up business. The new alliance aims to reach the 3,100 CUs that are served by the league's subsidiary in 45 states.
"Local merchants in particular are looking for lower cost processing options, and these services are a great opportunity for credit unions and can lead to other business relationships," said George Fiegle, executive vice president of the Illinois CU Service Corp. "Our partnership with Primax is another way in which we are fulfilling our mission to help credit unions compete."
By providing processing services for merchant retail, mail order, telephone, and Internet transactions, CUs assume no liability and at the same time can benefit from a new revenue stream, the league said.