Chase Payment Solutions Vs. Stripe For Credit Card Processing

Chase Payment Solutions is a direct processor while Stripe is a third-party processor.

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 means 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 Stripe – may be more ideal.

Let’s have a look at how published transaction rates compare for Chase Payment Solutions and Stripe:

Both providers allow for some wiggle room in their processing rates. If you’re a large-volume merchant, you’ll be able to get pricing discounts that are much more attractive – for both Chase Payment Solutions and Stripe. But volume discounts aren’t automatic, so make sure to ask for it.

More and more providers are doing away with long-term contracts carrying early termination fees (ETFs) and offering month-to-month ones with no ETF instead. That’s the case with both Chase Payment Solutions and Stripe.

If you found a provider that can meet your business’s changing needs, or you want to test a new processor, you won’t get penalized for jumping ship.