Does a card payment cost the same at the counter, online, by invoice, and over the phone?
Summary
No. Chase charges 2.6% plus 10 cents when a card is tapped, dipped, or swiped, 2.9% plus 25 cents for e-commerce, and 3.5% plus 10 cents when a card number is keyed in or paid through a payment link. The same $80 order costs $2.18 at the counter and $2.90 when you type the number in over the phone.
One $80 order, five ways to take it
Keyed in counts as card-not-present, even at the counter
Chase treats every tap, insert, and swipe as a card-present transaction at 2.6% plus 10 cents, including Tap to Pay on a phone. A keyed-in transaction is card-not-present at 3.5% plus 10 cents, whether the customer is standing in front of you or on the phone. A card the reader cannot read, typed in by hand at the register, is billed like a phone order.
What each channel needs
Counter. Chase's point of sale app with a card reader or its POS terminal, or Tap to Pay on the phone with no extra hardware. Chase's advertised prices cover processing only; readers and terminals are bought separately.
Website. A payment gateway added to the site.
Invoices and payment links. Chase's invoicing comes at no additional monthly cost, though invoicing with Chase Business Complete Banking is not available to all merchants. Payment links go out by text or email.
Phone orders and recurring billing. A browser-based virtual terminal, at the keyed rate of 3.5% plus 10 cents.
At PayPal, keying in and sending a link tie at $80
PayPal Point of Sale charges 3.49% plus 9 cents for manual card entry and 2.99% plus 49 cents for a payment link paid by card. The link's fixed fee is 40 cents higher and its rate half a point lower, so the two meet at $80.
- A $40 phone order: $1.49 keyed in, $1.69 by link.
- An $80 order: $2.88 either way.
- A $200 order: $7.07 keyed in, $6.47 by link.
If the customer pays the link with a PayPal account or Venmo, the rate rises to 3.49% plus 49 cents.
Outsourcing card data narrows PCI work; it does not remove it
The PCI Security Standards Council says PCI DSS applies even to a merchant that hands every payment to a provider and never stores, processes, or transmits card data on its own systems. Many requirements then stop applying directly, but three jobs stay with the merchant: checking that the provider's PCI DSS compliance covers the services in use, holding a written agreement that spells out the provider's responsibilities, and reviewing the provider's compliance status at least yearly. Merchants still validate their own compliance, typically through a Self-Assessment Questionnaire such as SAQ A.
Sources
- chase.com/business/payments/merchant-fees
- chase.com/business/payments
- paypal.com/us/business/paypal-business-fees
- paypalobjects.com/marketing/ua/pdf/US/us-merchant-fees-01-september-20…
- pcisecuritystandards.org/faqs/does-pci-dss-apply-to-merchants-who-outs…
Related on this site
- Why does a keyed-in or online card payment cost a merchant more than a tapped one?
- Does a small shop need a card reader, a payment terminal, or a full POS system?
- Do online card payments cost more than in-person ones?
- Can you take card payments on your phone without buying a reader?
- Does a small business still have to deal with PCI DSS if a processor handles the cards?
- What the headline rate leaves out
- Effective rate calculator
Written by Kaz (pen name). Figures are copied from providers' published pricing pages on the dates shown. We have not used these products. Corrections: contact form.