Chase Payment Solutions vs. PayPal: Which Payment Processor Is Better For Your Business?

Chase Payment Solutions is a direct processor while PayPal is a third-party process. But, what is the difference?

Direct processors offer the whole package, and this means the ability to manage your merchant account AND process your transactions. If your account were to freeze or charge back, you will only need to deal with multiple companies instead of having to deal with multiple.

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 it is easy to set up and it’s quick, third-party processing comes with a higher rick for fraud. So customers of this method should have a higher level of caution when it comes to suspicious transaction activity. Unfortunately, that translates into more account holds and even account termination.

In summary, 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:

Through Chase Payment Solutions, there is some wiggle room in terms of their processing rates. As mentioned above, if you are a large volume merchant, you might be able to get pricing discounts. Keep in mind that these volume discounts aren’t automatic, so you might need to do some negotiating. 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.