Chase Payment Solutions and PayPal consistently rank in the top five when it comes to popular payment processors. Let’s take a close look at how they compare, so you can decide which service is the better solution for your business.
Chase Payment Solutions, a subsidiary of banking giant JP Morgan Chase, offers payment processing for businesses of all shapes and sizes. From retail to restaurant and professional services, from mom-and-pop stores to international corporations. Chase Payment Solutions has you covered.
With a PayPal Business account and the PayPal Here app, merchants can accept credit, debit and PayPal payments online, in store and on the go. It’s one of the few processors that allows individuals to accept payments. So PayPal is quite popular among freelancers, consultants and the like.
*See how Chase Payment Solutions compares to Square, another popular card processor.
| CARD PROCESSOR | Chase Payment Solutions | PAYPAL |
| Type of Provider | Direct processor | Third-party processor |
| Type of Processing Fees | Tiered or interchange-plus | Interchange-plus |
| Contract & ETF | Month-to-month, no ETF | No contract, no ETF |
Products & Services
Not just payment processors, both Chase Payment Solutions and PayPal provide a variety of features and tools for merchants. Have a look at what each processor offers to see if they align with your business’s needs:
CHASE PAYMENT SOLUTIONS
- Merchant accounts
- Credit card terminals
- Payment gateway
- Virtual terminal
- Mobile processing
- International payments
- Line of credit
- Business credit cards
PAYPAL
- Online payments
- Card readers
- Payment gateway
- Virtual terminal
- Mobile processing
- Online invoicing & recurring billing
- Developer tools
- POS system integration
- Short-term loan service
- Marketing solutions
Other Factors To Consider
Chase Payment Solutions is a direct processor while PayPal is a third-party processor. What’s the difference?
Direct processors offer the whole package, managing your merchant account and processing your transactions. If any problem comes up – like account freezes or chargebacks – you’ll only need to deal with one company, instead of two.
Third-party processors, on the other hand, don’t require you to have your own merchant account. Instead, the processor opens a sub-account for you, along with other merchants, under its existing merchant account.
Although quick and easy to set up, third-party processing comes with a higher risk for fraud. So there is an increased level of caution when it comes to suspicious transaction activity. Unfortunately, that translates into more account holds and even account termination.
For established or growing merchants with high transaction volumes, you’ll want the stability a direct processor – like Chase Payment Solutions – can provide. For those that process lower volumes, are seasonal merchants or just starting up, the simplicity of a third-party processor – like PayPal – may be more ideal.
Let’s have a look at how transaction rates compare for Chase Payment Solutions and PayPal:
| CARD PROCESSOR | CHASE PAYMENT SOLUTIONS | PAYPAL |
| Swiped Transactions (per transaction) | 2.6% rate +10¢ per tap, dip and swiped transaction. 3.5% rate +10¢ per keyed transaction | 2.7% |
| Online Transactions (per transaction) | 2.9% + 25¢ | 2.9% + 30¢ (domestic accounts) 4.4% + fixed fee* (international accounts) |
*The fixed fee is based on the currency of the transaction.
There is a bit of wiggle room in Chase Payment Solutions’ processing rates. If you’re a large volume merchant, you’ll be able to get pricing discounts that are much more attractive. But these volume discounts aren’t automatic, so make sure you ask for it. Unfortunately, PayPal’s rates aren’t negotiable.
Both Chase Payment Solutions and PayPal do not require long-term contracts. If you find another provider that can meet your business’s changing needs, or you want to test a new processor, you won’t have to pay an early termination fee (ETF) for making the switch.
Bottom Line
Chase Payment Solutions is a solid choice for medium to large businesses that need a payment processor which can handle large transaction volumes. You’ll be able to negotiate better pricing for your needs, and you won’t have to worry too much about service disruptions. Those that already do their business banking (see bonus offer) with Chase will find things are more streamlined.
PayPal, however, makes better sense for new, seasonal or low-volume merchants. It might not be as stable as Chase Payment Solutions, but you’ll have everything you need to accept payments online or on-the-go.
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