Chase Payment Solutions Review (Formerly Chase Merchant Services): Fees, Pros, Cons and Alternatives

Chase Payment Solutions incorporates top-of-the-line technology from Paymentech.

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Chase Payment Solutions (formerly Chase Merchant Services) offers small-business owners payment processing with a familiar name and top-of-the-line technology thanks to its acquisition of Paymentech. But limited hardware options and the company’s reseller program could make alternatives such as Square and Clover better options for some businesses. Here's what to know.

What is Chase Payment Solutions?

Chase Payment Solutions is a payments processor and an acquiring bank in merchant transactions. These kinds of providers — often called direct processors — offer small businesses a two-in-one experience that can streamline the steps toward successfully getting paid.

Chase Payment Solutions

Chase
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on Chase's website

Chase Payment Solutions pricing

Payment processing fees

Chase Payment Solutions' payment processing fees vary based on the type of transaction:

  • 2.6% plus 10 cents for in-person transactions.

  • 2.9% plus 25 cents per transaction for online transactions.

  • 3.5% plus 10 cents for keyed transactions.

Monthly fees

Chase Payment Solutions typically doesn't charge monthly fees or have long-term contracts. However, there may be exceptions for the following types of businesses:

  • 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.

Those businesses may be subject to additional terms and conditions, which might include early termination fees.

Point-of-sale hardware

Here’s an overview of the POS products Chase Payment Solutions offers:

  • Chase Smart Terminal: This hand-held wireless card reader costs $399 and allows customers to dip, tap or swipe their cards, as well as use mobile wallets such as Apple Pay or Google Pay.

  • Chase QuickAccept: This smaller card reader is $49.95; it works with a feature built into a Chase Business Complete Banking account. You download the Chase Mobile app to your Apple or Android device, or you enroll in Chase Online. Then, you can pair the phone with the card reader or key in the card information directly into the app.

  • Stand-alone terminals: In addition to house-branded card readers, compatible card readers from Ingenico and Verifone are available. Chase doesn't offer more traditional POS setup kits with countertop monitors, kitchen-display systems, cash drawers or other common POS components.

  • Virtual terminals: This is necessary for processing payments online if you run an e-commerce business. But you can also use this solution to process card payments made by phone or mail. Chase partners with Vend and Authorize.net on virtual terminals.

Integrations

Chase Payment Solutions integrates with popular platforms, including:

Advantages of Chase Payment Solutions

Big name

Chase is a global brand that also offers business credit cards, business lending and other services. That can be an advantage for small-business owners who don’t want to juggle a bunch of financial relationships.

Two-in-one processor and acquiring bank

Most payment processing systems have to connect with a separate acquiring bank during each transaction. But because Chase is both a payments processor and an acquiring bank, there will be fewer handoffs in the process and fewer stakeholders that need to get paid.

Disadvantages of Chase Payment Solutions

Reseller programs

Chase Payment Solutions has an independent reseller program, which means other companies will bundle Chase Payment Solutions with their own merchant services and potentially mark them up.

It's easy to avoid the reseller program by buying straight from Chase Payment Solutions, but it throws uncertainty and complication into the mix of finding the right merchant services for your business.

Unclear pricing

Chase Payment Solutions posts its transaction fees on its website, but there is still some lack of transparency on its POS options. You may need to speak to a payment specialist to complete your transaction.

Alternatives to Chase Payment Solutions

Pricing:

  • 2.6% plus 10 cents for in-person payments.

  • 2.9% plus 30 cents for online transactions.

  • 3.5% plus 15 cents for keyed transactions.

Why we like it: Square point-of-sale systems offer up more features than what Chase offers — you’ll be able to manage employees, manage inventory, create a streamlined checkout process and sell gift cards to customers. In addition, Square’s point-of-sale devices include more than a card reader; you can also get a stand and register. Square also offers Tap to Pay on iPhone, which lets merchants accept card payments using only a regular iPhone with the Square POS app.

Square POS

Square
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on Square's website

Pricing:

  • 2.3% plus 10 cents per transaction or 2.6% plus 10 cents per transaction, depending on the plan, for in-person transactions.

  • 3.5% plus 10 cents per transaction for online transactions.

Why we like it: If you want a wider range of point-of-sale device options than you can get from Chase, consider Clover. It offers the Clover Go, the Clover Flex, the Clover Mini and the Clover Station. Only the Clover Go requires a smart device to process payments, while the other options come fully equipped. Clover also offers up more point-of-sale software options with features and pricing geared toward specific types of businesses.

Clover

Clover
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on Clover's website

Pricing:

PayPal product

Per-transaction rate

Per-transaction fee

Notes

Digital payments (invoicing, checkout, pay with Venmo and other commercial transactions)

3.49%.

$0.49.

Send/receive money for goods and services

2.89%.

$0.49.

Standard credit/debit card payments

2.99%.

$0.49.

Donations

2.89%.

$0.49.

Charity transactions

1.99%.

$0.49.

Alternative payment methods

2.59%.

$0.49.

PayPal Here (legacy offering for in-person payments)

Card present or QR code

2.7%.

No fee.

Keyed

3.5%.

$0.15.

Zettle (for in-person payments)

Card present or QR code

2.29%.

$0.09.

Keyed

3.49%.

$0.09.

QR code transactions

Over $10

1.9%.

$0.10.

Under $10

2.4%.

$0.05.

Online card payment services

Advanced credit / debit card

2.59%.

$0.49.

Per transaction rate is 3.5% for AmEx.

Payments Advanced

2.89%.

$0.49.

$5 monthly fee.

Payments Pro

2.89%.

$0.49.

$30 monthly fee.

Virtual terminal

3.09%.

$0.49.

Per transaction rate is 3.5% for AmEx. There is also a $30 monthly fee.

Why we like it: Chase requires you to open a dedicated merchant account to accept credit card transactions, but it can take a long time to apply for and set up your own merchant account. However, PayPal uses an aggregated merchant account, which can speed up that process if you need to start accepting payments quickly.

PayPal is also a great option for small businesses processing a lot of online payments because it’s built specifically for online. PayPal Zettle provides a card reader for in-person transactions.

A version of this article was first published on Fundera, a subsidiary of NerdWallet.

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