Chase Paymentech Review

Chase Paymentech Review

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Overview:

Chase Paymentech surfaced upon the merger between Chase Merchant Services and Paymentech, Inc. in somewhere between 2005 and 2006. Initially both the companies worked independently with the latter having been initiated back in 1985. Currently, the company has its headquarters located in Dallas, Texas.

Chase Paymentech is an acquirer which basically is a financial institution which plays the role of an intermediary between the merchants and the customers. More or less, it is responsible for processing of the transaction taking place. Considering the merger and the life of the company, one can easily say that these are one of the biggest sharks in the market. Only in year 2010, they were responsible for processing $469.3 billion – in excess!

Paymentech also struck a partnership with First Data somewhere in its initial stages however the circumstances weren’t favorable hence the alliance ended in the year 2008.

One thing is established; Chase Paymentech has the big guns under their belt and has been playing around in trillions of dollars over its life span. Considering this, one thinks that these guys might have suffered some severe lashing down by their customers at some point; fortunately, that is not the case. Chase Paymentech has received relatively low number of complaints in comparison to the number of transactions they have processed. With thousands of customers under their wings, these guys have efficiently managed to accommodate the majority of them.

One of the advantages of dealing with Chase Paymentech is that you don’t have to go through any middle man; they believe in direct contact. This results in better negotiations and deal terms. And while you are at it, inquire about the interchange-plus pricing. Moreover, Chase Paymentech understands its client’s needs. They were known to have an early termination fee but apparently it no longer is applicable on merchants with small scale businesses.

It is not only in the United States that Chase Paymentech has made its mark but their Canadian reviews are more than remarkable as well. Considering the limited options you get to choose from in Canada, Paymentech hands down is the best there to offer.

It is all these qualities that make Chase such a recommendable company for you.

It easily gets itself 4 stars out of 5 in the rating chart.

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.
  • www.chasepaymentech.ca.

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.

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.

Trust Symbols:

The Chase Paymentech BBB profile has an “A+” rating as of this review, with 105 complaints in the last 36-months.

Negative Reviews:
You can find some complaints on the usual sites like RipOffReport, Complaints Board and Pissed Consumer.

 

Common Complaints:
Although the numbers of complaints lodged against Chase Paymentech are lower than the expectations, there are some that needs to be reviewed:

  • o    Expensive/undisclosed terminal lease contracts through Lease Finance Group (LFG) and Northern Leasing: Through terminal leases, sales representative cash in a lot of money and in return becomes a financial burden on the customer. The leases last over the period of four years and can be rather costly. It is sensible for small merchants to buy these terminal leases as they only require a few of them.
  • o    Cancellation fee: Upon the terminating your account before time, the fee that Chase Payment charges you is $350. However, according to recent updates, they have eliminated that.
  • Bad post-approval customer service: With Chase Paymentech, the issue that you usually face is that the customer is not tended to properly as is the scenario in smaller companies. Due to shortage of time and resources, each customer does not get enough time to achieve a certain level of satisfaction. However, the plus point is the Chase offers you better rates in comparison. So it’s a win-lose situation.

Verifiable Testimonials/References:
I wasn’t able to find any testimonials listed on the Chase Paymentech site. Be sure to ask for references.

Security/Privacy:
No on-site security features (i.e. McAfee, Security Metrics etc…).

Customer Service:
Existing customers get 24/7 service and support. Have you worked with Chase Paymentech? Feel free to leave us your review.

Contract Duration:
3-years.

Cancellation Fee:
Chase Paymentech recently eliminated their early termination fee for all small merchants.

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.

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13 Comments

  1. Everything looks good until you receive your first chargeback and then you are screwed big time. No matter what you provide to chase, proof of mailing, tracking info, signature confirmation, a statement that shows shipping and billing address match,they will still rob you, take your money and have you suffer on your loss. They provide no protection over chargebacks etc and their service is awful.

    We have been with chase paymentech for about a year until we received our first chargeback for unauthorized charge. We provided everything they asked us for, proof of mailing, shipping and billing address match, signature confirmation etc and then they turned around and refunded the buyer. We ended up loosing $200 in transaction fees when the buyer has kept the merchandise.

    Bottom line is chase paymentech does not provide any sort of security over their merchant like paypal does. We cancelled our service with Chase and signed up to PayPal pro. At least with paypal we get some sort of protection over chargebacks something that Chase does not provide.

  2. Chase Paymentech has really let me down with its PIN pad. The device fails to read card at first instance. This has been inconveniencing my customers a lot and bleeding me of revenues.

  3. I opened a merchant account with Chase Paymentech couple of months ago. The company promises services at quite an affordable price, but only on paper. It charges exorbitant fees for POS service. Fees are robbing me of a significant part of the profit. Planning to switch to a better merchant account service!

  4. The support staff at Chase Paymentech is unnaturally rude and difficult to deal with!

  5. I have had a real tough time with Chase Paymentech. For them a small business such as mine is only an account whom they can bill periodically for monthly profit. They choose not to respond in case of technical glitches or server errors!

  6. Chase Paymenttech’s with its contactless card reader fails to identity. This is nothing but a joke! Have lost all that money and then the business loss!

  7. The so called reputed cash management and fund transfer services offered by the Chase Paymentech Canada is not safe at all!

  8. An online promo by Chase Paymentech Canada challenges competitors to provide better service! It’s pretty funny! They should stop deceiving others and upgrade their own products

  9. I operate a small business and recently cancelled with chase and was charged cancellation fee. So, what it says above about them eliminating the cancellation fee for early cancellation for small merchants is not true.

  10. Terrible experience…After signed up, first month charge was about $15o for $2200 transaction amount, ate up most of our profit…Called the sales to complain, was told there was 3 years agreement, have to pay $300 to get out of it…..

  11. Chase Paymentech is a joke. The customer service is rude and they don’t care about the customer at all. I have been on the phone with them at different times and they always say the same thing that they can not transfer you up to a higher person and that if someone else comes on the say the same thing. They don’t have a problem taking your money.

  12. Chase Paymentech is the worst! TERRIBLE SERVICE! Terrible follow up. Terrible keeping promises: #1 – Terrible at releasing funds for payments processed and owed, #2 – Terrible at calling you back when you have a problem and they promise to call you back, #3 – Terrible at showing any kind of care, concern or helpfulness. They FAIL at all of the above. Chase holds your $$$ hostage while they CLAIM to hold it for your own protection to prevent fraud. But when I provide ALL necessary information to RISK Department, Merchant Services, Level 2 escalation for Merchant Services – NO ONE HELPS EXPEDITE or Process!! They KEEP YOUR $ while they take their time “resolving issues” that don’t even exist. No one @ Chase talks to each other within the company or between departments. No one seems to care about helping me or my business. I have spent DAYS trying to reach just 1 person who could HELP ME and I keep getting passed around from person to person. It is CRAZY! I WILL NEVER USE OR RECOMMEND CHASEPAYMENTECH! I am starting the painful process to find another provider. Wish me luck!

  13. Chase Paymentech is not very nice to deal with. They have caused me great hardship with an arbitrary “hold funds” regarding a larger than usual deposit. It was from a regular legitimate customer and we have been with CP for over 25 years. They told us it was being “looked into by the fraud department”. They would not say if or when the funds might be released. It has been a humiliating and embarrassing experience for us and now we talk with our customer and they too are shocked.

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