Chase Merchant Services Review

Pros:

  • pros All-in-one payment processing solution
  • pros No monthly fee for basic account
  • pros Monthly billing with no early termination fee
  • pros Excellent integration with leading payment platforms

Cons:

  • cons Lack of transparency about plan details
  • cons Free credit card terminal requires long-term contract
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Score: A

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Product Overview

Chase Bank Merchant Services is the merchant-services subsidiary of one of the world’s largest banks, JPMorgan Chase. It was established in 1985 as Chase Paymentech and later merged with JP Morgan. According to many Chase Merchant Services reviews, the provider doesn’t offer the cheapest merchant service account. However, it is a direct processor, which means you get an all-in-one payment processing solution without having to deal with third-parties. Chase handles payment processing for nearly half a million businesses in the United States worth more than $1 trillion dollars annually.

Pricing and Fees

Before we delve deeper into the merchant services that Chase offers, let’s break down the pricing structure. When making a Chase merchant account, the first thing you need to decide is whether you want stand-alone or virtual terminals. You can also choose a mobile on-the-go solution, eCommerce solutions, or a solution that lets you simply connect to the Chase payment gateway using your own existing system or device.

The basic offer for small-business owners involves having a flat rate across all credit and debit card types with no monthly account fee, month-to-month billing, and no early-termination fee. The rates for non-virtual solutions are as follows: 2.6% + $0.10 for swiped transactions and 3.5% + $0.10 for keyed transactions. Meanwhile, eCommerce and virtual terminals will set you back 2.90% + $.25 per transaction. Chase Merchant Services fees are lower if you have a PIN pad and get your customers to use their debit cards and PINs. 

The company offers an interchange rate + $0.25 for electronic funds (PIN-debit) and electronic benefit transfers as well as 0.05% + $0.49 for Chase PIN-debit transactions.

A classic interchange-plus plan is available on request. It’s a fairly competitive rate of 0.35% + $0.10, and there are no minimum monthly processing amounts or PCI compliance fees. 

The monthly Chase service fee of $9.95 is mandatory, and printed copies of the monthly statements from your Chase Merchant Services account will set you back another $5 per month. 

Other Chase fees include a chargeback fee of $10, an ACH return fee of $25, a voice authorization fee of $0.65, and a batch settlement fee of $0.15. You also have to deal with card network fees, such as the Visa Fixed Acquirer Network Fee and the Mastercard Merchant Location Fee. 

Interchange-plus plans are open to negotiation when it comes to processing rates, so the reputation of your business, time in business, and transaction volume can all have an effect on the final rate.

Type of Transaction

Cost per Transaction

Swiped transactions

2.6% + $0.10

Keyed transactions

3.5% + $0.10

eCommerce and virtual terminals

2.90% + $.25

Contract and Termination Conditions

A number of Chase Merchant Services reviews warn that some businesses may not qualify for month-to-month contracts. In order to avoid a long-term contract, you must have a payment terminal or buy a Chase card reader directly from the bank. If you also want a free terminal with your business account at Chase, chances are you will have to sign up for one of the long-term plans and it will likely have an early termination fee. 

The company also states that businesses requiring processing capabilities in multiple currencies or those that process over $5 million in annual credit and debit card sales may also require longer-term commitments.   

As with any credit card processing provider, longer-term contracts aren’t mandatory but are necessary if you want to get the best possible rates and other benefits.

Products and Services

What do Chase payment solutions actually offer you for your money?

This full-service, direct processor differs from traditional payment processing services. The provider takes care of your merchant account and processes transactions as a receiving bank. In other words, you are dealing with just one party. This minimizes the back-and-forth commonly found with third-party payment processing companies and banks, making Chase’s system one of the best merchant processing services for people who want to avoid chargebacks and account freezes.

The provider offers several payment processing methods, which can be separated into point-of-sale, mobile, and online solutions. As one of the world’s largest banks, Chase also offers several other benefits such as international payments in over 120 currencies, next-day funding, lines of credit, and business cards.

Point-of-Sale Credit Card Processing Options

Options here vary depending on whether you are looking to set up a Chase POS system from scratch or already have an existing system or payment solution in place. If you’re just looking to get a countertop or wireless solution for your business, Chase has everything you need. The solutions can process EMV payments, magnetic stripe cards, select mobile payments like Apple and Google Pay, contactless cards, and PIN debit transactions. The provider also supports restaurants and retail stores with reporting and tip adjustments. 

Chase provides popular Verifone and Ingenico terminals, and you can choose between leasing or buying them. Unfortunately, prices aren’t listed on the website; you have to request a quotation.

Our Chase Merchant Services review has already mentioned that you can get a free terminal. However, you are limited to one such device and will likely need to sign a long-term contract with an early termination fee in order to get it. If you already have your own system or device, the fixed rate will remain the same, but you won’t be forced into a long-term contract and could possibly get a better quote down the line.

Mobile Credit Card Processing Options

If you’re looking for a solution that’s more suited to mobile payments, check out the Chase Mobile Checkout app. It’s available for both iOS and Android systems. Additionally, the Chase credit card processing system works through an EMV-compliant eDynamo card reader that connects via Bluetooth. The app is very versatile. In addition to creating a product catalog and accepting credit and debit card payments, you can get email and tax receipts, issue refunds, search for and cancel transactions, prompt customer tips, print transaction and receipt geolocations, and add employees while managing user permissions.

Online Credit Card Processing Options

The final set of options is designed largely for those who primarily want to set up online payments. 

Chase bank merchant services include eCommerce solutions and virtual terminals. These give you the option to integrate with many of the world’s most popular eCommerce platforms such as 3dCart, Shopify, BigCommerce, Spreedly, Infusionsoft, and WooCommerce. 

Orbital Virtual Terminal is Chase’s web-based solution. It allows you to turn your PC or Mac into a credit card terminal and key in transactions manually or use an optional USB-connected card reader. The web interface is free, but you’ll have to pay for the reader.

Those more interested in payment gateways for eCommerce have the option of using the proprietary Chase payment service, Orbital Payment Gateway, or a third-party option such as Authorize.net. All these platforms are regarded as fast and secure payment authorization systems within the industry.

You can also use Chase’s Resource Online reporting tools to see your statements, review transactions, run reports, or manage chargebacks.

Level II and III Processing

Level II and III processing are mostly used in B2B and B2G transactions to help large corporations keep track of their spending by collecting more data. Eligible companies can use that data to get much better interchange rates for credit card transactions. As one of the best merchant services, Chase also offers options for this kind of processing. But bear in mind that many companies are not eligible. Some also wish to avoid the hassle that Level II and especially Level III card processing transactions involve. 

This could be a viable option if you are heavily invested in B2B transactions because interchange rates are much better. But bear in mind that Chase charges an extra monthly fee for this type of transaction processing.

Miscellaneous Benefits

Chase Merchant Services reviews often gloss over the fact that Chase is a bank first and foremost. In addition to all the benefits of Chase payment processing solutions, you can also count on other features if you are an existing Chase business account holder. For example, Chase offers excellent line-of-credit options and business credit cards, and if you have a Chase business bank account in addition to your merchant account, you can patch up any cash-flow problems with next-day funding. 

To get details about these and other services, you’ll have to reach out to a company representative. The website has little more than Chase Merchant Services rates and some basic technical information.

BBB Rating

The Better Business Bureau is a household name. This private non-profit organization has been acting as a mediator between businesses and their clients since 1912. It consists of 106 independently incorporated local BBB organizations in the US and Canada. The BBB rating is an important factor when choosing your payment processing provider. BBB uses a 100-point scoring scale to assign letter-grade ratings from A+ (highest) to F (lowest). Check out how the ratings are assigned here.

Despite being rebranded from Paymentech, Chase is still listed on BBB under the old name. Chase Paymentech, or Merchant Services as they are now known, holds a decent B- rating. 

BBB ratings are largely based on complaints and the transparency of business practices. Chase has only 39 customer complaints, but a lot of them have never been properly resolved according to BBB’s records. BBB doesn’t base its score on customer reviews, but the fact that many users give Chase one out of five stars isn’t encouraging.

That said, those 39 complaints account for fewer than 0.1% of merchants using the Chase payment system. Most complaints revolve around difficulties with returning rental equipment, fund stalling, and billing issues as well as dissatisfaction with customer service agents.

Customer Support 

Chase offers 24/7 customer support every day of the year. But whether you get to talk to a local team or outsourced agents depends on when you call. The negative reviews of Chase Merchant Services on BBB often express frustration with the support team. However, if we take into account the company’s volume of operations, there are comparatively few complaints. It is fair to conclude, therefore, that customer support agents are doing their job well. Our experience was positive. But you should always bear in mind that an enormous company like Chase cannot provide the same level of personalized service that you can expect from smaller enterprises that focus solely on payment processing solutions.

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FAQ

Which bank offers the best merchant services?

Among larger US banks, Chase is probably the best option. One thing you’ll notice if you look up merchant services reviews is that Chase is the only major bank that regularly comes up alongside dedicated payment processing companies such as Stripe, Fattmerchant, Paypal, and Payline. That said, you generally get better deals and lower rates with independent providers, but there’s the added hassle of dealing with two different entities for all payment processing concerns or problems.

What is a Chase Merchant Services account?

A merchant services account is a type of business bank account at Chase Bank that allows businesses to accept and process electronic payment card transactions. It is a special type of account that allows your business to accept various types of electronic and credit card payments through a secure channel. It uses physical point-of-sale equipment, mobile apps, or a web interface. Whether you are starting from scratch or already have equipment, Chase Merchant Services accounts can handle your payment-processing needs.

Is Chase Merchant Services good?

Yes. If you ignore the negative Chase Merchant Services reviews on the company’s BBB page, most customers as well as professional reviewers give merchant services by Chase fairly high marks, and for good reason. The service may lack a personalized customer service agent or rates that favor small businesses, but having a direct processor for your transactions makes up for that.