Chase Paymentech: Everything You Need To Know
Chase Paymentech can be an excellent credit card processor if you are a large business that deals with high volumes of card processing day-to-day. However, the monthly fees and other overhead costs make this a poor choice for startups and small businesses. If that better describes your firm, you should instead look at options like Stripe or Square.
- Review: Is Chase Paymentech A Good Credit Card Processor?
- Chase Paymentech Fees, Features & Benefits
- How Does Chase Paymentech Compare to Other Credit Card Processors?
Review: Our Thoughts On Chase Paymentech
We think Chase Paymentech can be a good credit card processing solution for large enterprise businesses that need sophisticated back-end systems capable of handling large transaction volumes. For small to mid-sized businesses, we recommend going with other processors, like Square or Stripe, as they offer lower overhead costs and simpler pricing structures.
|Good For…||Bad For…|
|Enterprise-level credit card processing||Small and mid-sized businesses|
|Large-volume processing||Companies looking to avoid monthly fees and big overhead costs of credit card processing|
One of the things we don’t like about Chase Paymentech is their tiered transaction pricing. This is currently one of the most opaque ways to price credit card processing on the market, and it makes it difficult to get a good sense of how much you will be paying month-to-month. When it comes to so-called qualified transactions, you will be paying a super low rate. However, anything that falls out of this category, or tier, will be significantly more expensive. Chase Paymentech doesn’t offer a good break down of what exact transactions fall into which tier, and it’s largely handled on a case-by-case basis.
You can request your business be billed using interchange plus pricing, which we highly recommend. However, you need to specifically ask for this when signing up with the service.
Bottom Line: Don’t get Chase Paymentech if you are a small to mid-sized business. If you are looking for enterprise-level solutions, we recommend getting a quote from Chase and a few other processors, like First Data, and making your decision based on the offer that makes the most sense for your company.
Chase Paymentech Fees,Features & Benefits
|Chase Paymentech Credit Card Processing||Details|
|Pricing||Tiered, Interchange Plus (by Request)|
|Setup Fee||$0 - $100|
|Early Termination Fee||None (month-to-month contracts)|
*Estimate based on a business with less than $50,000 in monthly transactions and an average transaction size of $75.
Chase Paymentech advertises a tiered pricing structure on their website. We generally advise businesses to opt for interchange plus pricing whenever possible, since it is significantly more transparent. Chase Paymentech does offer this as an option, though you will need to explicitly ask for it when signing up for your merchant account. The main issue with the tier pricing structure is the fact that purchases can be arbitrarily assigned to a specific tier, drastically altering how much you’re paying for a transaction. With interchange plus, you will have a better handle on your total month-to-month cost.
Chase Paymentech Transaction Fees
|Qualified Tier||1.99% + $0.25|
|Mid-Qualified Tier||2.68% + $0.25|
|Non-Qualified Tier||3.76% + $0.25|
|Interchange Plus*||0.25% + $0.10 + Interchange Fee|
*Your interchange plus pricing depends on two things: the monthly sales volume of your business and the average ticket size. In the example above, we obtained a quote for a company making $10,000 - $50,000 per month in sales with an average sale of $100.
Note that you may encounter other fees as well when processing payments. However, these are standard across the industry, and you’d pay them regardless of which credit card processor you choose.
How Much Can Chase Paymentech Credit Card Processing Cost Your Business
We ran Chase Paymentech through a few direct simulations to give you an estimate for what the cost may be to your business under the different pricing tiers. This can show you how widely costs can vary depending on which tier a transaction falls under, how what type of pricing model you’re using.
For these examples, we assumed the business was processing $25,000 per month with an average ticket size of $25. For interchange pricing, we assumed an average interchange fee of 1.75%.
|Pricing||Estimated Monthly Chase Paymentech Cost (Retail)|
How Does Chase Paymentech Compare To Other Credit Card Processors?
As always, to deliver a comprehensive review of major credit card processors, we compare them against other available options. Below we go over how Chase Paymentech performs when matched up against other leading processors.
Chase Paymentech vs Stripe
Stripe is one of the best online credit card processors, and much better than Chase Paymentech for startups and mid-sized businesses. Once you have an enterprise-level businesses, processing large volumes, it may be worth exploring Chase Paymentech for some of the added security and infrastructure they offer. However, unless you are an enterprise-level business, the added benefits will likely not matter much in light of the extra costs they come with.
What makes Stripe better for small businesses is the low overhead costs. It doesn’t charge any monthly or annual fees, and it has no monthly minimum. It also comes with a free and robust API that will allow you to build a custom checkout experience into your eCommerce site, without any additional fees.
- Online only
- 2.9% + $0.30 per transaction
- No monthly fees
- Our Stripe Review
Chase Paymentech vs Authorize.net
Authorize.net is an online-only credit card processor that may be better than Chase Paymentech for companies that are concerned about security and chargebacks. This processor differs greatly from Chase Paymentech on two fronts: monthly fee and per-transaction costs. Authorize.net costs $25 per month to maintain, which is $15 more expensive than Chase’s online-only solution. What do you get for this monthly fee? Authorize.net provides what they call an Advanced Fraud Detection Suite™. This service promises to help cut down on the number of fraudulent purchases that your business processes.
From a per-transaction cost basis, Authorize.net offers a simpler and more transparent pricing structure. You pay 2.9% + $0.30 for each purchase made with a Visa or Mastercard. Chase Paymentech’s shortcomings on this front are the same as we outlined in our review above. The tiered pricing isn’t very transparent so businesses may have a hard time accurately projecting their processing costs with this merchant services provider than they would with Authorize.net.
- 2.9% + $0.30 per transaction
- $25 fee
- Advanced fraud protection benefits
- Our Review of Authorize.net
Chase Paymentech vs First Data
First Data, like Chase Paymentech, is geared towards large businesses that do a lot of processing. They don’t disclose their rates online, and you need to obtain quotes on a case-by-case basis to figure out what it would cost your business. However, reports seem to indicate First Data is one of the priciest credit card processors out there.
Ultimately, choosing between Chase Paymentech and First Data should come down to three factors: quotes (including monthly fees), the types of terminals you’re offered, and ancillary solutions available. If you’re looking for large-scale credit card processing for a business going through millions in transactions each year, you’ll want to get on the phone with a sales rep from each of these companies and see which will be willing to give you the best deal.
First Data Highlights
- Credit card processor for large businesses
- Doesn’t disclose pricing information on website
- Reportedly more expensive, especially for small businesses
Chase Paymentech vs Square
Square is a credit card processor designed for small business needs. However, it also has the capability to scale for mid-to-large sized businesses. Unlike Chase Paymentech, Square has a fully transparent pricing plan. For retail transactions, Square charges companies 2.75% for each swiped transaction, and 3.5% + $0.15 for each keyed in purchase. When it comes to online and eCommerce sites, Square chargers businesses 2.9% + $0.30. The major advantage of this, over the way Chase Paymentech handles pricing, is that you will be able to more accurately project your cost month-to-month. Square also doesn’t charge any monthly fees or minimums, allowing small startups to operate at a lower cost.
For large businesses, Chase Paymentech may be able to offer more enticing volume discounts. However, you should always obtain as many quotes as possible when comparing options.
- 2.75% per swiped transaction
- No monthly fees or minimums
- Readers vary in price from $29 - $169
- Our Square Review