Chase Merchant Services Fees
Chase Merchant Services charges 2.6% + $0.10 for tap, dip, and swipe transactions, and 3.5% + $0.10 for keyed transactions. Aside from a few exceptions, there are no monthly fees and long-term contracts. However, users note some long-term fees when renting POS equipment.
As you make key financial decisions for your small business, it might feel natural to check the trusted names you already know, like your personal bank, for the business products you need.
Chase Merchant Services (formerly Chase Paymentech) might be one of those options for you.
Chase Merchant Services is an arm of JPMorgan Chase, one of the largest banks in the nation, and it incorporates top-of-the-line technology from the acquired Paymentech merchant services company. If you’re searching for a familiar name that’s also elevating the game, then Chase Merchant Services might be the perfect choice for your business, but there are some crucial points to note. In this review, we’ll go over what Chase Merchant Services is, the cost of using Chase Merchant Services, look at the pros and cons of using this service—including what other clients think of them, and provide some alternative payment processors for you to consider.
What Is Chase Merchant Services?
Since acquiring Paymentech, Inc., Chase Merchant Services is now both the processor and the acquiring bank in transactions. These types of arrangements, often referred to as direct processors, often offer small businesses speed and peace of mind as a two-in-one experience.
All payment processing systems have to connect with an acquiring bank during each transaction. However, with Chase Merchant Services, the payment processing system and the acquiring bank are one and the same.
As a result, choosing Chase Merchant Services as your payment processing system could seriously streamline the steps toward successfully getting paid.
The Details on Chase Merchant Services
With the fundamentals of how Chase Merchant Services functions covered, it’s time to dig a little deeper.
In order to figure out if Chase Merchant Services is the right fit for your business, we’ll need to dive into the details and become more familiar with its intricacies.
Chase Merchant Services Pricing
The first detail that you’ll likely want to learn about Chase Merchant Services is how much it will cost you.
Their tap, dip, and swipe transaction fees are 2.6% + $0.10, and 3.5% + $0.10 per keyed transaction. Some ecommerce payment systems, however, list a 2.9% + $0.25 transaction flat fee for keyed transactions. They do note that, when speaking to a payment specialist, you may be able to negotiate on fees.
There should be no monthly fees and no long-term contracts their website says. But that isn’t true for all businesses. There are some exceptions, so be sure to pay attention to your exact contract with Chase before making any decisions. These include:
- Businesses that need to process multiple currencies
- Businesses that process over $5 million in credit and debit sales
- Businesses that have specific software or connectivity requirements
These businesses won’t be able to opt out of long-term contracts and, instead, will operate by additional terms and conditions, which might include early termination fees. However, judging by these restrictions, these additional Chase Merchant Services fees will not likely apply to small businesses. If they do apply to your business—say, because your business relies on processing many types of international currencies—you may want to consider alternatives to Chase Merchant Services (which we’ll get into in a little bit).
Note that there may be additional fees to look out for if you rent, instead of buy, POS hardware like terminals and card readers—something we’ll discuss further when we look at user reviews for Chase Merchant Services.
Chase Merchant Services Point of Sale Payments
When it comes to point of sale systems, Chase Merchant Services can provide your business with many options to choose from.
These point of sale options have a wide reach. You’ll be able to opt for some of Chase Merchant Services’s POS hardware, like the Ingenico iCT250 or the Verifone VX680. They have mobile solutions as well as user-friendly standalone terminals and point-of-sale tablets or virtual web portals for payment.
Here’s an overview of all the POS products Chase Merchant Services offers:
- Bluetooth card reader with app: Can integrate with iPhones, iPads, and Android devices. While it processes EMV chips, it doesn’t yet come with tap functionality.
- Standalone terminals: These can process EMV chip and magnetic stripe cards, along with certain mobile payments like Apple Pay. These also allow for tip adjustment and reporting.
- Tablets: You can build your ideal payment solution around this iPad-based hardware system, or buy all parts as part of a bundle. These offer more advanced capabilities, like customer information, inventory and employee management, and sales tracking.
- Virtual terminals: If you run an ecommerce business, this is necessary for processing payments made online, but this solution can also be used to process card payments made by phone or mail. Chase’s solution will allow you to manage shipments as well.
- Ecommerce solutions: These flexible solutions allow integration with multiple platforms and uses Authorize.Net as its payment gateway.
Additionally, you can also choose to integrate another brand’s point of sale software with your Chase Merchant Services system, in order to easily address your business’s specific needs and preferences.
The Chase Merchant Services website has a tool you can use to see which options are best for your business, just by telling them what type of business you run and how you generally accept payments. You can also use this tool to view the best software integrations and ecommerce solutions for your business.
It should be noted, however, that prices and payment plans for any POS systems you select do not seem readily available on the Chase Merchant Services website.
Chase Merchant Services Ecommerce Platforms
If you run an ecommerce store you’ll be able to use Chase Merchant Services as well. They have integrations with many of the popular ecommerce platforms including:
They have a search function where you can check whether your ecommerce platform is supported. Once you select the payment solution through the ecommerce platform you use, you’ll be prompted to enter your information so that a representative can contact you with their recommendations.
Chase Merchant Services Mobile Payment Processing
With the mobile payment processing capabilities that Chase Merchant Services offers, you and your employees could run quick, secure transactions beyond the checkout counter. With a Chase card reader and the Chase Mobile Checkout app, you’ll be able to accept payments through Apple and Android smartphones and tablets.
Chase also offers a wireless terminal that functions much like a desktop point of sale device but can move around as needed thanks to a WiFi or cell service connection.
Chase Merchant Services: The Advantages
Having combed through the many features that Chase Merchant Services offers businesses like yours, it’s time to take an evaluative look at these features.
First, let’s cover which of Chase’s features are particularly good news for your business:
The first bit of notable good news that Chase brings to small businesses?
The option to choose to integrate with your ecommerce platform.
If you do most of your business online through an ecommerce site, then it will come as a relief that Chase Merchant Services easily lets you integrate that ecommerce platform with their processing so you can collect payments.
They work with a variety of ecommerce platforms so it’s likely that the one you use it one of the ones they also work with and you can be up and running, accepting payments in no time.
Two-in-One Processor and Acquiring Bank
Another huge plus that Chase Merchant Services boasts?
Its two-in-one nature of being both a payment processor and an acquiring bank.
Since Chase will wear both of these hats, your business’s payment processing will move much more quickly and be more secure. Because there will be fewer hand-offs in the process, there will be fewer hoops for payment information to jump through.
Additionally, because there are fewer stakeholders that need to get paid in this payment processing setup, Chase will often be able to get you a better deal than other processing systems that involve more entities.
Chase Merchant Services: The Disadvantages
Just like any other small business financial product out there, there are drawbacks to Chase Merchant Services.
Here are two of the most notable disadvantages to choosing Chase as your business’s merchant services provider:
One of the most notable downsides to choosing Chase Merchant Services is that they have an independent reseller program.
You’re probably wondering what an independent reseller program is exactly. It essentially means that other companies will bundle Chase Merchant Services with their own merchant services and potentially mark them up.
Although the reseller program is easy to avoid by buying straight from the Chase Merchant Services source itself, it simply throws another uncertainty and complication into the mix of finding the right merchant services for your business.
Another downside to Chase Merchant Services that you’ve probably gathered throughout this review?
Previously, Chase Merchant Services did not list their transaction fees on their website. Though this has changed, there is still some lack of transparency when it comes to their POS options. It seems that either way, once you select your ideal package, you must speak to a payment specialist to finalize your transaction.
Because these specialists may be either in-house or not, this can lead to confusion about pricing and payment, as users have noted in reviews.
Chase Merchant Services: Users Reviews
The most recent user reviews of Chase Merchant Services aren’t exactly glowing.
The reviews and complaints on the Better Business Bureau’s page for Chase Paymentech, the company that provides the merchant services for Chase, are largely negative and amount to just 1.5 stars out of five. They they have a B rating, which points to them being able to settle customer complaints relatively quickly. Customers say they’ve canceled their account only to continue to receive charges from Chase Paymentech, and that while the integrations exist, they’re difficult to use. Other customers reviewed the service and wrote that they experienced poor customer service.
The Top Alternatives to Chase Merchant Services
Now that you’ve learned all the ins and outs of Chase Merchant Services what are your next steps?
Well, it depends on how you feel about everything you’ve learned. If you’re not completely convinced by Chase Merchant Services, then it’s important for you to shop some other options to see if there’s a better fit out there for your business.
First up on your list is Square.
You’ll probably recognize Square’s characteristically sleek and white payment processing gear—from its most basic magstripe reader to its souped-up stand, you’ve likely encountered a wide variety of Square products as a consumer.
But what can Square offer you as a small business owner?
Well, the list of features that Square point of sale systems offer up is a long one—you’ll be able to manage employees, manage inventory, create a streamlined checkout process, and even provide gift cards for your customers.
As for hardware, you can choose from a range of five Square point-of-sale devices that include a magstripe reader, a chip reader, a contactless payment and chip reader, a stand, and a register.
And for software, you can choose from a free app, Square Point of Sale, or a more pricey and powerful software called Square for Retail.
However, beyond this list of features, devices, and software options that Square boasts, Square is simply one of the easiest POS systems to use on the market. Plus, Square’s pricing is incredibly transparent and simple to wrap your head around. Square charges 2.6% + $0.10 for in-person payments and 3.5% + $0.15 for card-not-present transactions.
All in all, Square will be much more user-friendly for you, your bookkeeper, and your employees.
Another top alternative to Chase Merchant Services for you to consider is Clover point of sale systems.
Just like Square, Clover is a tech-based point of sale company that aims to disrupt an industry that incumbents like Chase have run for years.
And they’ve succeeded in doing so by offering up some of the very best point-of-sale hardware and software options on the market. Clover has a wide range of point of sale device options—the Clover Go, the Clover Flex, the Clover Mini, and the Clover Station. Only the Clover Go requires a smart device to process payments, whereas the other options come fully equipped.
Clover also offers up multiple point of sale software options. You can choose from the free Payments Plus, the middle-of-the-road Register Lite, or the ultra-powerful Register software plans.
Altogether, though Clover point of sale systems aren’t as recognizable as Square or as tenured as Chase Merchant Service, they’re certainly a viable option for business owners who are searching for a straightforward, fairly priced payment processing system.
PayPal is another example of a payment service provider like Square is. It’s one of the options that, if you don’t need a dedicated merchant account for your business, could work quite well.
It’s also a great option for those processing a lot of online payments because the fee is 2.9% + $0.30 for each transaction. This is more than Chase Merchant Services in-person transaction fee but it’s built specifically for online. It comes with other perks as well.
You can set up PayPal Here if you need an in-person smart device to use for physical transactions, using the PayPal Here card reader, the transactions would cost you 2.7%.
This might work to your advantage and be a better option for you depending on what sort of transactions your business usually runs.
Is Chase Merchant Services Right for You?
With the info you’ve learned through this guide, you’re more than equipped to decide whether or not Chase Merchant Services is the right payment processing point of sale system for your business.
And if the advantages do outweigh the disadvantages, do these advantages address your business’s needs as well as Chase’s simpler competitors? Because finding the right price tag and list of features is half the battle with merchant services, the less complicated alternatives—like Square and Clover—have a leg up.
So, before you sink the time into dialing in and signing on with Chase Merchant Services, we suggest examining the most streamlined options, as well.