Why so many owners start with their own bank
Searches for a bank's name plus "merchant services" usually come from one of two places. Either the owner is opening a business account and the banker offered card processing, or the owner already processes elsewhere and wonders if the bank would be simpler. Both are fair starting points.
Banks often do not run the card processing themselves. They partner with a large processor or sell a point-of-sale system under their own name. PNC's pricing page, for example, refers to apps in the Clover App Marketplace and a merchant services agreement with PNC Merchant Services Company [2]. That does not make the offer worse. It just means the bank is one of several doors to similar technology, and the price is what you should compare. American Express, for one, lists Bank of America, Chase and Wells Fargo Merchant Services among the providers that can set up its cards for you [3].
What Chase and PNC publish
Chase lists three basic rates: 2.6% + 10 cents for tap, dip or swipe; 3.5% + 10 cents for manually keyed payments or payment links; and 2.9% + 25 cents for e-commerce [1]. Chase adds that monthly fees may apply to certain products and pricing plans [1], so ask which apply to you.
PNC lists 2.60% + $0.10 per swipe transaction, 3.45% + $0.15 per non-swipe transaction such as phone or manually entered payments, and 2.90% + $0.30 per e-commerce transaction [2].
Read the two side by side and the in-person rate is a tie. Keyed payments are close; PNC's percentage is lower but its fixed fee is higher, so it costs less only on larger tickets. Online, Chase's fixed fee is 5 cents lower on every payment.
What the headline rate leaves out
PNC is direct about it: transaction prices do not include equipment costs, chargeback fees, app fees and other third-party charges, or the cost of software some Clover apps need [2]. Those lines can matter more than a tenth of a percent on the rate. A terminal lease that runs for years, for instance, can cost more than the processing difference between two banks. Our terminal lease guide shows how to price one.
Chase's selling point is speed. It says deposits can arrive as soon as the same day, at no added cost, when funds go to a Chase business checking account [1]. If you bank at Chase already and cash timing is tight, that is a real benefit worth weighing against any fee difference.
Sign-up credits are not a rate
PNC advertises up to $1,000 in statement credits when you open and use a new merchant account [2]. A one-time credit is welcome, but run the numbers over the life of the agreement. A small rate gap repeated every month can outlast any credit.
Ask what custom pricing looks like
Published bank rates are a floor for the conversation, not the only option. Chase says that on its basic pricing all cards cost the same, and that with custom pricing fees may vary based on card type [1]. Varying by card type is usually a sign of interchange-plus, where the network's cost passes through and the markup is stated separately.
Which is cheaper depends on your card mix. If many customers pay with debit cards, pass-through pricing often wins, because debit costs the networks less. If most pay with premium rewards cards, a flat rate can hold up. The only way to know is to price your own statement both ways. Our guide to reading a merchant statement shows where to find the numbers.
Questions to ask any bank before you sign
- Which monthly, annual or statement fees apply to my plan, in dollars?
- Is the terminal bought, rented or leased, and can the lease be ended early?
- What does a chargeback cost, and are there app or software fees on my setup?
- How long is the merchant agreement, and is there an early termination fee?
- Can I see custom or interchange-plus pricing for my card mix next to the basic rate?
Bring a recent statement from your current setup so the bank prices your real month, not an average one. BatchOut can lay a bank quote next to other options in one pass, and our New Jersey merchant services guide covers what to check locally.