Chase Merchant Services and Stripe are some of the most popular card processors. To find out what makes either of them stand out, continue reading this review below.
Chase Merchant Services is a part of JP Morgan Chase, and they have different cards for all kinds of businesses. No matter what kind of business you have, no matter how big or small, CMS can assist you successfully!
Stripe, on the other hand, aims to improve businesses by empowering it. Their site even gives you access to developer tools for convenience so you can continuously build your business. They also have an option for instant access to payment processing.
Table of Contents
Chase Merchant Services vs. Stripe Quick Facts
|Card Processor:||Chase Merchant Services||Stripe|
|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||Month-to-month, no ETF|
Products and Services
Below is a list of services that each of these credit card processor offer. Consider all of the features before deciding if either Chase Merchant Services or Stripe would work best for you.
|Chase Merchant Services||Stripe|
|Merchant accounts||Payment processing|
|Credit card terminals||High-tech developer tools|
|Payment getaway||Card readers|
|Virtual terminal||Billing (invoices & subscriptions)|
|Mobile processing||eCommerce fraud prevention|
|International payments||International payments|
|Line of credit||Assistance starting an internet business|
|Business credit cards|
Other Factors to Consider
Before choosing a merchant service to do your business with, you should ask yourself what are the differences between a direct and third party processor and what should you keep in mind before choosing to do business with any credit card processing company in general.
Below is a chart that explains the pros and cons between two different kinds of credit card processors, direct and third party.
Direct Card Processor
Direct card processors manage a merchant account and processes transactions at the same time since they are processing from only one company.
Third Party Card Processor
With third party card processors, they can open a sub-account for you right under a preceding merchant account. However, since it’s a third party service, the risk of fraud is high.
If your business tends to have high transaction volume, then it is best recommended to use a direct processor like Chase Merchant Services so that you won’t run the risk of fraud.
Direct processors offer more security because if anything happens to your merchant account, you can just take it up with Chase.
Third party processors like Stripe tend to have a lower transaction volume, so the risk of fraud may be higher, but with small businesses it shouldn’t be too troublesome.
Always be sure to consider both pros and cons of a direct processor vs third-party processor before you invest in one!
Below is how each card processor calculates their rates per transaction.
|Card Processor||Chase Merchant Services||Stripe|
|2.6% + $0.10||2.7% + $0.05|
|2.9% + $0.25||2.9% + $0.30|
From the chart, you can see that their processing rates are pretty similar for online transactions compared to transactions made directly through a credit card terminal.
Normally, the contract that a service provider gives is about three years. These terms often include automatic renewal and early termination fees (ETF).
However, now more providers are offering month-to-month agreement with no ETF.
Chase Merchant Services and Stripe both happen to be utilizing this method now.
The next time you aren’t sure whether you need to use a direct processor or a third party processor for your business, remember that Chase Merchant Services and Stripe are some of the top contenders.
Businesses with high transaction volume should trust a reliable card processor such as Chase Merchant Services to reduce their worries about fraud.
As for smaller businesses and entrepreneurships that don’t have as high of a transaction volume, Stripe will handle your transactions. Strip is also recommended to those who have an online business that they want to slowly enhance.
Case in point, CMS is best for established businesses while Stripe is great for young and new businesses.
If you are interested in finding out more information about card processors, then check out our Best Credit Card Processing Services to learn more in depth about various kinds of card processors!