Chase Paymentech Review
Merchant Maverick's Rating: (4 out of 5)
Last Updated: June 3rd, 2010.
Logo:
Overview:
Chase Paymentech (CP) is the very first Acquirer that I've reviewed here on Merchant Maverick. If you don't know what an acquirer is, you can check out the term in my glossary, or you can read about here. Visa also has a list of all registered acquirer's that you can find here.
To give you an idea of how big they are, Chase Paymentech processed in excess of $713.9 billion dollars in transactions in 2008 alone. Yup, these guys are the big dog's.
Chase Paymentech was originally Chase Merchant Services which then merged with Paymentech, Inc. in 2005-2006. The company's headquarters are based out Dallas, Texas, and if you consider Paymentech, Inc's start date, then you can basically say that they've been in business since 1985. Though, I personally think that more emphasis should be placed on how they've operated since the merger.
CP also became a partner of First Data in its early years of operation. They forged an alliance in 2006 which didn't last very long. Their relationship ended in 2008.
Moving on to the good stuff...
For a company that has processed almost a trillion in transactions, I was surprised to find a relatively low number of complaints. However, keep in mind that the "Chase Paymentech" brand has only been around since 2005, so it's still pretty new. With that said, I highly recommend you check out the "Common Complaints" section below so you can avoid some of the problems that other merchants have been facing with CP. And, be sure you download a copy of their terms and conditions as you may not receive one from your sales rep. You can download it in PDF form here.
I wasn't able to find any testimonials on the CP website which is always a bad thing if you ask me.
They do have a Facebook page and Twitter account, but neither of them seem active.
Chase Paymentech gets a 4 out of 5.
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Date Established:
Paymentech, Inc., which was the corporation's name before it merged with Chase, was established in 1985. The merger happened in 2005.
Location:
Dallas, Texas.
Domain Name(s):
www.chasepaymentech.com.
Parent/Partner Company:
JPMorgan Chase is the parent company of Chase Paymentech. Back in 2005, JPMorgan Chase acquired the Dallas based Paymentech, Inc., hence the new name.
Chase Paymentech inked a deal with First Data in 2006, but ended that relationship just two years later in 2008. I think this blog post by Mike Shatz of "The Merchants's Blog" is a great read if you want to learn some more about the implications of that break-up.
Type:
Registered Acquirer/Acquiring Bank. Chase Paymentech is actually the first acquirer that I've reviewed so far. Visit this page to learn more about how the industry operates, and where Chase Paymentech fits in to all of it.
Acquiring Bank(s) (Acquirer):
JPMorgan Chase.
Payment Processor(s):
Chase Paymentech is the direct payment processor.
Payment Gateway(s):
They use their own Orbital Payment Gateway.
Do you need help setting up your payment gateway with your website? Click here.
Trust Symbols:
The Chase Paymentech BBB profile has an "A+" rating as of this review, with 30 complaints in the last 36-months.
Negative Reviews:
You can find some complaints on RipOffReport, Complaints Board and Pissed Consumer. Take a look at my "Common Complaints" section below to get an idea of what past merchants are saying about Chase Paymentech.
Common Complaints:
Here they are...
- Expensive/undisclosed terminal lease contracts through Lease Finance Group (LFG) and Northern Leasing: It is well known within the industry that terminal leases are a big money maker for sales reps. They usually come with a 4-year contract, and can cost you a ton of money. I've actually seen similar complaints against Lease Finance Group (LFG) and Northern Leasing when doing my review of Pivotal Payments and EVO Merchant Services. There are just too many other providers out there that won't lock you into these types of terminal contracts for you to even waste your time here.
- Non-disclosure of contract terms and cancellation fees by sales reps: This boils down to the type of sales rep you get. Remember, these guys are trying to get PAID! So, if they think that a 3-year contract term or a $350 cancellation fee is going to stop you from signing up with them, do you really think that they're going to tell you about it? Probably not, so you're going to want to do your own research. I was able to dig up a copy of those terms that you can download by clicking here (PDF). Pay particular attention to section 10 (10.1, 10.2, 10.3, 10.4) as this pertains to the contract length (3-years) and the cancellation fee ($350).
- Bad post-approval customer service: I really wouldn't expect much from such a large bureaucratic organization like Chase. You're usually a number, and not a name. Maybe they can prove me wrong.
Verifiable Testimonials/References:
I wasn't able to find any testimonials listed on the Chase Paymentech site...not cool!
Security/Privacy:
No on-site security features (i.e. McAfee, Security Metrics etc...). The security issue really depends on what kind of information the merchant account provider is collecting from you. If they require you to fill out a full digital application with sensitive info like SSN numbers, then they should definitely have some third-party security in place. Sometimes, and in the case of Chase Paymentech, the application only requires some basic info, then the real application is taken care of by fax or later on through a secure online app.
Customer Service:
Have you worked with Chase Paymentech? Feel free to leave us your review.
Contract Duration:
3-years. You can download the Chase Paymentech contract by clicking here (PDF).
Cancellation Fee:
$350+. I added the "+" sign because this amount can be much more depending on what type of terminal lease you signed up for. The $350 is just for your merchant account with Chase Paymentech, not including the terminal lease.
Interchange-Plus Pricing:
Interchange-plus is offered by Chase Paymentech.
Seasonal Downtime:
Seasonal downtime is also offered by Chase Paymentech, but it depends on what type of business you are.
Product/Service Offering:
Retail (Credit/Debit), Online/e-Commerce Payments, Gift & Loyalty, Mail Order/Telephone Order (MOTO), Wireless, POS (Point-of-Sale), Recurring Payments, International Processing.
Product/Service Specialty:
None.
Don't forget to leave your review and rating in the comment section. 
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June 16th, 2010 - 13:47
I signed up with CP in 2008, shortly after the relationship with First Data dissolved and caused much confusion. I received emails advising me that First Data will be managing my account, when I had originally signed up with Chase Paymentech. The rep that signed me up had also moved over to First Data and there was no contact person at Chase Paymentech to confirm the details of my account. I tried for months trying to contact someone.
I was charged for things that were suppose to come with the service such as newly encrypted pin pads and free supplies. This was offered to match the previous service provider’s services. Plus, there was suppose to be no decline fees on EBT cards or monthly service fees. These are all being charged, in addition to the regular rate increases. The addendum on the contract was not honored by Chase Paymentech nor the charges that were not suppose to be charged.
They advised me that I could cancel my services at a with a cancellation fee (this was also suppose to be waived at the sign of contract, as proof of their high quality service).
I am also charged for batch out fees that were suppose to be waived; not only one charge per batch out per night, but 3-4 levels of batch out cost per terminal.
It is useless calling into their service center.
Be aware when signing up, ask to speak to their supervisor, have another contact other than your rep. Once signed up, they will be out of reach.
September 6th, 2010 - 23:14
I’m shocked to see this company rated so highly when you list the common complaints. Those are huge to a small business owner.
I was verbally told by my rep that I had a one year contract with $10 fees per month (plus transaction fees), but of course he wrote up a contract for 3 years at $35 per month, with that early termination fee of $350. My first month using their service, they took 40% of my sales. That is not a typo. I’m trying to find info for a class action lawsuit on these guys; they did the same thing to another cottage industry business that I work with. Shame on them.
September 7th, 2010 - 08:14
Thank you for your comments Sarah. It’s exactly these types of user experiences that make Merchant Maverick better for everyone.
You’re absolutely right, they’re extremely important. The main reason why I gave Chase Paymentech a higher rating is because of how frequently, or infrequently in this case, those common complaints have shown up. Chase Paymentech is a huge company. As you can see, I’ve reviewed nearly 100 companies as of now. For a processor as big as CP, their complaint count is actually pretty low, and that speaks volumes. I’ve reviewed companies with three times the complaint count at one-third the size of CP, so I definitely consider the “size-to-complaint count ratio” of a merchant account provider when giving them a rating. One would expect larger companies to have more complaints.
The common complaints themselves were not good by any means, but the low frequency is what prompted me to give them a better rating.
With that said, my ratings are always in flux Sarah. As I mentioned before, your experience is invaluable to everyone on this site, so believe me when I tell you that I will definitely consider your comments during the next rating update.
Best of luck to you. Feel free to contact me if you ever need help in the future.
January 11th, 2011 - 08:41
I’m with Paymentech through the Canadian Federation of Independent Business (CFIB) and after going through the nightmare known as Pivotal Payments, I must say Paymentech is very good. Their terminals are rock solid hardware and software-wise, funds are deposited in a timely manner, and they have never played games with rates after you sign up.
How much does this have to do with my protection from the CFIB is unclear, but in the 2.5 years I have been with Paymentech, I have yet to call their customer service department to signal a transaction problem or billing issue.
I avoid leases when it comes to terminals now… these machines get outdated rather quickly and acquirers rarely issue software updates to terminals that they no longer sell or rent.
March 21st, 2011 - 13:47
I had a similar experience. I was promised a shorter lease term and in the haste of setting up my business missed that the contract said 3 years. Cancellation processes are byzantine in their complexity. It’s a real tar-baby if you’re not the sort of person who can yell at customer service people.
May 9th, 2011 - 09:38
I had a similar experience except my contract is five years; shame on me for not reading the fine print, but I have grown used to companies being up front about their policies, which is not the case with Chase Paymetech. Their customer service is terrible; I’d say they simply don’t care about the customer’s needs.
May 9th, 2011 - 09:45
Chase Paymentech’s customer service is among the worst I’ve experienced from any provider of services in recent years. They are slow to respond to customer needs. They promised me that I would up in five business days, then were unresponsive when it took them two weeks, delaying the launch of our website. I definitely get the “I don’t need you” feeling (but I’ll take your money anyway). Working with them has been a very frustrating experience.
June 20th, 2011 - 18:37
We are not totally satisfied with the customer service and pricing and have a seasonal business and have not been happy with the service nor the pricing for our accounts. i have spent much time each season setting the contract up and closing it in the fall so decided to keep the terminal through the winter and because it was not used very much, I was still charged the same monthly fees so am going to cancel my contract and go somewhere else where I am more satisfied.
August 22nd, 2011 - 14:07
The worst service ever experienced. I told them my website is supported by godaddy.com. They promised me a rate at first and after I finished all of the contract I found out the merchant ID they provided me can not be used. I called them many times they said it must be something wrong from Godaddy.com. Then wasted me about 1 week to go back and forth to solve the problem.
Then they found out, within chase paymentech, there is a godday.com-chasepaymentech department especially deal with the account for godaddy.com. Then this new department within Chase paymentech gave me a new offer with much higher rate. I told them I do not want their service anymore. Then after 2 months, I found out two charge about $50 on my bill from chase paymentech. I called and they told me this bill can not be reversed because there is a contract between us. WTF, I want the merchant ID I can use on GODADDY.COM, they gave me a merchant ID which can not be used at all and they still charge me the money?!!!!!!! YOU GUYS DID NOT SELL ME WHAT I WANT TO BUY, If someone BROKE the contract it is CHASE!!!!!
Then I told them I want to cancel this contract and I want to reverse the money, they said they will have someone who is responsible to make the decision and call me back, however, until now it already another 3 weeks and I did not receive anyfeedback from them, when I call them no one even other the phone now !!!!!!!
The worst service ever!!!!