Chase Paymentech
Review Updated:12/19/2011
Rating Criteria | Find a Processor | Get Instant Rate Quotes | Write a Review
Chase Paymentech Overview
Chase Paymentech Logo
Based out of Dallas, Texas, Chase Paymentech (chasepaymentech.com) is one of the largest credit card processors in the United States. Although it has operated under different business names due to acquisitions and joint ventures, Chase Paymentech has been in existence since 1985. The company is now the merchant services subsidiary of JPMorgan Chase Bank.
Chase Paymentech primarily focuses on offering merchant accounts and credit card processing services, but can also enable a merchant to accept electronic check payments, gift cards and international payments.
Chase Paymentech Sales Tactics & Marketing Strategy | A
This reviewer found no uses of deceptive advertising or rate quoting by Chase Paymentech. The company primarily markets its services through partnered sub-ISOs and telemarketing. Interestingly, Paymentech does not appear to recruit independent outside agents directly but, instead, forwards them to the sub-ISOs who hire independent agents.
The use of independent agents often results in numerous merchant complaints because it is hard to control the sales tactics they use. Since Paymentech does not hire them directly, it is not suffering the usual complaints that are associated with the practice. It is entirely possible that the sub-ISOs that do hire them have the typical complaints, but there are numerous sub-ISOs and Paymentech does not provide a list of them.
Chase Paymentech Fees, Costs & Contract Terms | B
Pricing and contract terms of Paymentech merchant accounts can vary on several factors including a merchant’s processing needs, sales volume and the agent or sub-ISO setting up the account. In some cases, Paymentech offers month-to-month contracts, no cancellation fees and no PCI compliance fees. Generally, these are cases where a merchant uses Paymentech’s dial-in, phone charge system, or has its own equipment already.
Merchants who accept “free” terminals can expect to sign a service agreement of up to 36 months and possibly pay early termination fees for cancelling service before the term expires. The cancellation fees appear to vary based on different factors, so merchants are strongly encouraged to read their contracts before signing any documents. Paymentech also appears to charge annual PCI compliance fees ranging from $79 to $100+ in some cases. Be sure to ask your agent about PCI compliance fees, as they are not always disclosed verbally prior to account activation.
To learn everything about rates and fees, and how to get the lowest pricing the credit card processing industry offers, check out Fee Sweep.
Chase Paymentech Complaints & Service | B
For a company of its size and time in business, Paymentech has a low number of complaints filed online in the usual forums. The common theme among the complaints are merchants reporting non-disclosure of a service length agreement and cancellation fee, unexpected PCI Compliance fees and difficulty in getting problems resolved. With Paymentech’s huge size, the limited number of complaints seems to indicate that most of them are isolated incidents and not a sign of widespread issues.
Chase Paymentech BBB Report | B (CPO Adjusted)
As of this update, the Better Business Bureau (BBB) is showing that Paymentech has been accredited since 2010. The BBB is reporting and “A+” rating and 76 complaints filed in the last 36 months, which is up from 54 complaints since the last update. Of the reports, 51 are regarding problems with products and services, 18 with billing and collection, and seven (7) with advertising and sales issues. Out of the 76, a total of 19 complaints were not resolved to the merchants’ satisfaction. Since the BBB grade appears to be artificially inflated, we are adjusting the rating to a “B” for the purposes of this review. You can learn more about why we adjust BBB ratings in our rating criteria.
Bottom Line
Overall, Chase Paymentech scores much better than most processors of its size. Merchants are encouraged to make sure they understand all of the terms of their merchant account contract because most of the complaints can be traced to this problem. Paymentech can improve its rating in this review by eliminating cancellation fees with all of its account types and eliminating future merchant complaints.
Featured Provider:
Merchant Warehouse (866) 460-5538
Review | Website
- Check Our Recommended Processors
- Compare Processor Rates & Fees
- How to Avoid Scams, High Fees and Long Contracts
- Get Help From an Expert
3 comments
Frank D. says:
February 9, 2012 at 9:56 am (UTC -8 )
chase customer since 2008- never heard from anyone after opening the acct.
August 2011 received 6 fraud transactions. Once discover we cancelled all we could and refunded money. 2 orders were shipped to the bad guys.
Investigated – ran my own card thru with totally ficticous info and it went thru.
I called Paymentech – found out that AVS (or something) was never enabled.
the addresses and zip were never being verified. Call Paymenttech i tried to be proactive – they assured me they would help etc. I have a long list of phone and case numbers. No one can help, it always has to be referred to a higher authority.
They sucked the money out of our acct. It has been since August 2011 until now and we still have not received the response telling us that we are screwed.
Bottom Line- as a merchant in a “card not present” enviroment you are the low man of the totem pole. We now look at every sale and decide if we should take the risk.
Also note that you pay fees on fraud sales as well unless you void before settlement. We learned all this the hard way.
This could happen with any processor, but since their rates are not that cheap they will be replaced.
This is all true, I have proof and have set my name to it.
Frank D., Katstar Inc.
Julie Hurst, President American Mold Experts says:
January 21, 2012 at 3:41 pm (UTC -8 )
My business banker recommended speaking with a particular Chase Paymentech rep about moving over my CC processing. Since my Chase business banker recommended, I thought I could trust. We ended up opening an account in July 2010. In August I contacted him about running those payments through our CRM software system so transactions would register in our client database. He said, “not problem we can do that.” To make a long story short he opened an entire NEW account. the next month I began getting two statements, two sets of fees and have been trying to close ever since. I was ran through so many departments each claiming to close the second account and then each month getting two statements and two sets of fees. This process has gone on for 6 SIX MONTHS all the while me being told to do this, do that, now sign this, use this account, not use this one and the fees just keep running up. No one has been able to address the problem and credit back fees on an account that was never to be opened all stemming from the Chase cc sales person whom I trusted and referred from my business banker. I am furious that no one will take responsibility. The system is broke when it takes a customer 6 months to close an account and multiple calls and conversations all the while charging fees.
Liz says:
January 21, 2012 at 3:39 pm (UTC -8 )
Having dealt with quite a few of the new pop up merchant account providers (Square,etc.) who provide less than satisfactory Customer service along with an overabundance of false advertising, it is nice to have a FDIC insured bank behind me in Chase Paymentech. They had me fill out an application with all kinds of data about myself and my business to approve my merchant account (good…I would hope any company obtaining people’s credit card information would have to do this up front.) The fee’s are there, however, it is well worth it to me to pay a small fee to protect my own privacy as well as my clients privacy at a real “Bank” as well as have them literally only a phone call away if something goes wrong. No emailing and wondering if there is going to be a response. I have even had them call me about charges, fees, etc. It is nice to know that someone is concerned about you making money. Chase is. And, they are a “Big Business.” I don’t think I will ever take the risk of signing up with a small non-insured, “pretend” merchant account/credit card processor again. I am happy with Chase. So are my customers…