Chase Merchant Services Review

Based out of Dallas, Texas, Chase Merchant Services, also known as Chase Payment Solutions, is one of the largest merchant account providers in the United States. Although it has operated under different business names due to various acquisitions and joint ventures, Chase Merchant Services has been in existence since 1985.

Chase Merchant Services History

Previously known as “Chase Paymentech” since its acquisition of Paymentech in 2000, the company rebranded its global ISO operations as “Chase Commerce Solutions” in late 2015. In January 2016, First American Payment Systems acquired all of Chase Commerce Solutions’s operations. Today, Chase’s merchant services products are marketed as the Chase Merchant Services branch of JPMorgan Chase & Co., but the Chase Paymentech brand is still found on some of the company’s products.

Chase acquired WePay in October 2017, which could signal that the company plans to focus on building e-commerce platforms going forward. The company has also achieved some recognition as the back-end processing network for the popular mobile credit card processing app Square.

Low Complaint Volume for Chase Merchant Services

Considering its substantial size and extensive time in the business sector, Chase Merchant Services has a relatively low number of negative reviews online. Out of approximately 60 negative reviews, the most common issues reported by merchants include nondisclosure of service agreement terms and cancellation fees, fund holds, unexpected PCI Compliance fees (often charged by sub-ISOs rather than directly by Chase Merchant Services), substandard customer service, and challenges in managing chargebacks. This suggests a need for transparency and better communication in certain areas of their service.

Chase Merchant Services Legal Matters

Our research did not uncover any active class-action lawsuits or Federal Trade Commission (FTC) complaints against Chase Merchant Services. Clients who prefer to address disputes through non-litigious means are encouraged to report their issues to appropriate supervisory organizations.

Chase Merchant Services BBB Rating

As of this update, the Chase Merchant Services BBB profile has been merged into the larger JPMorgan Chase & Co. profile, so we will not use that to evaluate it as a processor. At our previous update, the Better Business Bureau had a profile for Chase Merchant Services as “Chase Paymentech” and did not show accreditation for the company. The company had a “B” with the BBB at that time. Despite this, its profile showed 39 complaints filed in the last 36 months. JPMorgan Chase & Co has a 1.13 out of 5 star rating based on 868 user reviews on the Better Business Bureau website.

Chase Merchant Services had also received 17 informal reviews to its old BBB profile, 2 of which were positive in tone and 15 of which were negative in tone. The most recent review described poor customer support:

This client’s complaints about Chase Merchant Services chargeback policy and account holds convey the importance of finding a merchant account provider who is best suited for your type of business. Businesses in similar situations should research how to fight chargebacks and resolve fund-holds.

A “B” Performance

In light of the company’s previous complaint rate and resolution ratio, we agree with the BBB’s rating of a “B.”

Variable Contract Terms

Chase Merchant Services offers varied rates for merchant accounts. Debit transactions incur a swipe rate of 1.99% plus $0.15, while credit transactions are charged at 2.99% plus $0.15. Keyed-in transactions, both credit and debit, are billed at a flat rate of 2.90% plus $0.25. Typically, when accounts are set up directly through Chase Merchant Services, merchants are offered month-to-month contracts without any cancellation fees or PCI compliance fees.

Merchants opting for a “free terminal” might be subject to a 24-month service agreement, a common condition for receiving complimentary equipment. The cancellation fees within this 24-month term can differ depending on the equipment’s type, urging business owners to thoroughly review their contracts prior to commitment.

Virtual Terminal and Payment Gateway Pricing

Chase Merchant Services extends its offerings to include virtual terminal and payment gateway services, although specific pricing details for these services are not publicly disclosed. It is indicated that the company’s flat keyed-in rate of 2.90% plus $0.25 might also apply to online transactions. Typically, additional charges such as gateway fees, technical support fees, batch fees, and extra transaction rates are applicable to these e-commerce solutions.

Few Contract Complaints

The number of negative reviews concerning Chase Merchant Services’ pricing and contract terms is minimal relative to its market presence. The company’s pricing structure is competitive, potentially aligning with the most affordable merchant accounts. For comprehensive insights into rates, fees, and securing the best pricing within the credit card processing industry, exploring additional resources such as Fee Sweep is recommended.

In-House Agents and Resellers

We have found no uses of deceptive advertising or rate quoting by Chase Merchant Services. The company appears to primarily market its services through partnered sub-ISOs and telemarketing. Interestingly, Chase Merchant Services does not appear to recruit independent outside agents directly but instead forwards applicants to the sub-ISOs who hire independent agents.

Few Sales Complaints

The use of independent agents often results in numerous merchant complaints due to a lack of direct control over their marketing and sales tactics. Since Chase Merchant Services does not hire its agents directly, it is not suffering the usual complaints that are associated with the practice. It is entirely possible that the sub-ISOs that hire these agents receive the typical complaints, but there is no indication of Chase Merchant Services itself being the source of any misleading marketing or tactics. In addition, the complaints that do exist are low in number and inconsistent in their content. If you suspect that a Chase Merchant Services representative has added undisclosed fees to your contract, we recommend seeking a third-party statement audit to find and eliminate hidden charges.

Chase Merchant Services scores much better than most credit card processing providers of its size. The company’s extensive resources and established reputation in the financial sector contribute to its favorable standing. However, it is crucial for business owners to thoroughly understand all the terms of their merchant account contracts. Many of the complaints associated with Chase Merchant Services can be traced back to misunderstandings or lack of clarity regarding contract terms, which underscores the importance of careful review and negotiation.

Chase Merchant Services has the potential to improve its rating by addressing key issues that have been raised by its clients. Specifically, the company could enhance customer satisfaction by eliminating cancellation fees across all account types, which would make its services more attractive to a broader range of businesses. Chase Merchant Services is a better fit for large, established businesses that have the resources and experience to navigate its contract terms effectively. New and smaller businesses might find better options by comparing offerings from top-rated merchant account providers that cater more specifically to their needs.