Choosing the right payment processor with an array of options, tools, and pricing is important for the success of your business. With hundreds of merchant services providers in the U.S. offering credit card processing services, it can be a bit confusing. To add to the perplexity, there are noticeable cost differences when comparing bank-owned services, like Chase Merchant Services, or a dedicated merchant services provider, like Stax.
Although it might seem convenient to process with the bank your business is already working with, bank merchant services are usually the most expensive option for businesses. Banks like Chase often require contract terms with early termination fees.
We’ve taken a deeper look at Chase Merchant Services, also known as Chase Paymentech, to see how their payment technology and offerings compare to Stax’ payment processing services.
For over 25 years, JPMorgan Chase & Co. has been providing merchant services to some of the world’s largest brands, new eCommerce start-ups, and thousands of small businesses. Chase merchant services give you the ability to accept credit and debit card payments via point-of-sale payment tools including mobile payment tools, stand-alone terminals, and a virtual terminal for touch-free processing.
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. This offer is limited to one terminal per processor.
A not so comforting issue is that Chase Merchant Services no longer discloses any of its processing rates on its website. You can choose either flat-rate pricing or interchange-plus. Its flat-rate pricing plan is designed for small businesses, and the rates are comparable to those charged by Square.
Chase Merchant Services Pricing:
2.60% + $0.10 per transaction for card-present transactions — i.e., tap, dip, and swipe transactions
3.50% + $0.10 per transaction for card-not-present/keyed-in transactions
Some sources note that these rates are negotiable, so you can potentially lower your costs by speaking with a Chase Merchant Services rep.
That said, the high per-transaction cost with Chase Paymentech means the more you make in a month, the more you pay. Chase Merchant Services does not offer deposit products and its services are not guaranteed or insured by the FDIC or any other governmental agency.
Chase Paymentech Key Features
- Ability to accept payments in person through various point of sale systems, terminals, and card readers
- Ability to accept online payments through eCommerce integrations, a virtual terminal, or payment gateway powered by Authorize.net
- Chase QuickAccept℠ app and mobile reader
- No-fee, same-business-day deposits
- Fraud protection services like check monitoring, check protection, and ACH debit blocks
Ranked as one of the best merchant services companies nationally, Stax is a subscription-based merchant service provider with total transparency built into its model. All merchants have access to direct cost payment processing with 0% markups, no contracts, and no hidden fees. Stax also sells terminals outright, so you’re never locked into a contract.Learn More
While Stax isn’t as old as Chase Paymentech, its membership pricing provides competitive value and service. In many cases, Stax offers more value at a lower cost than most merchant services providers including Chase. This is thanks to Stax’ 0% markup and high-quality Stax integrated payments platform.
With Stax payment solutions, you can manage your financials, payments, customer management, inventory, and more—all under one roof.
For Businesses Processing Up to $500,000 Annually: $99/month + direct interchange
- $0.08 per swiped, dipped, or tapped transaction
- $0.15 per online or keyed-in transaction
For Businesses Processing Over $500,000 Annually: $199/month + direct interchange
- Swiped: $0.08 per transaction
- Keyed: $0.15 per transaction
Stax Key Features:
- Subscription-based pricing
- No contracts or markups
- Real-time data and analytics dashboard
- 24/7 in-house customer service
- Over 200 available software integrations
- 2-way QuickBooks integration
- Free PCI compliance assistance
- Mobile processing
- Payment gateways
- Next day funding for approved businesses
- Integration with most established POS system
Subscription vs. Bank Scenario #1
CP Cost of Processing $18,000 per Month
4 sales per day x $150 per sale x 30 days = $18,000/month
|Stax Fees*||Square Fees||Chase Bank Fees|
Subscription vs. Bank Scenario #2
CNP Cost of Processing $45,000 per Month
3 sales per day x $500 per sale x 30 days = $45,000/month
|Stax Fees*||Square Fees||Chase Bank Fees|
Chase Customer Service and Merchant Reviews
For its customer service offerings, Chase has an online support center, along with a dedicated portal for troubleshooting error messages on merchant card readers. Although Chase’s website lists a phone number for general support, calling in takes you to an automated answering service, with no clear instructions to get a hold of a live person.
Looking up Chase Merchant Services reviews yields mixed ratings across merchant and payment review websites.
It has a 2-star rating on CardFellow, and the website reports that the majority of complaints with Chase are in the “Problems with Product/Service” category. There are also a handful of merchant complaints about “Billing/Collections issues.”
Chase Paymentech has a 1-star Yelp rating, with many merchants citing poor customer support.
“Terrible customer service,” writes one merchant. “They made ‘accidents’ with aspects of the account that compromised my business yet feel there is nothing they can do to make up for it.”
“Customer service does not have all the answers,” writes another reviewer, who couldn’t get their hardware and checkout issues resolved.
It’s not all bad though. Merchant Maverick gives Chase a solid 4-star rating, and praises the company’s ability to serve a wide range of merchants. The site also commends the breadth of services that the company provides, though it’s worth noting that additional offerings are often bundled up with other services.
According to Merchant Maverick, Chase Merchant Services gives you “the ability to bundle your merchant account with a wide variety of other Chase business services. In addition to the next-day funding option available to Chase banking customers, the company also offers business loans and several business credit cards.”
Stax Customer Support and Merchant Reviews
Stax fares better in the customer service department. In addition to an online knowledge base, the company’s customer support can be reached over the phone and via live chat. You can also submit support tickets, which are tracked and resolved using the Zendesk platform.
Stax also has higher star ratings from both merchants and software review websites.
Merchant Maverick gives Stax 5 stars for its transparency, cost-effective pricing, and customer support practices. “It’s a genuine relief to find a provider that treats its customers with respect and offers such a flexible and affordable service,” writes Merchant Maverick.
Meanwhile, merchants on TrustPilot give Stax a solid 4.3 stars, with many reviewers praising the company’s customer support.
“On top of the cost savings, I couldn’t be happier with the customer service and overall experience of switching to [Stax],” writes one merchant.
“The customer service with Stax has been great so far. Everyone I have talked to has been super helpful and accommodating to our needs as a company. I look forward to our relationship going forward,” writes another.
It truly pays to understand exactly what payment processing service will work best for your business as you explore your options. The right merchant services company should be transparent and serve your business needs.
That’s why when compared to Chase Paymentech, Stax emerges as a better solution. Stax simplifies credit card processing, and all you pay is a monthly membership which provides you with access to the direct cost of interchange and absolutely no extra fees.
Not only that, but Stax clearly beats JPMorgan Chase Bank’s merchant services when it comes to customer service. Stax offers more customer support resources and also makes it easy to talk to a live person.
If you’re interested in Stax, fill out the form below or get in touch to learn how we can help you process payments in an efficient and cost-effective way.