Big Banks Beat Out PayPal and Square for Merchant Service Satisfaction
PayPal, Square, Stripe and Intuit Quickbooks have built their brands on payment processing, money management and merchant services. When it comes to customer satisfaction though, these platforms are getting beat out by the big banks.
According to the 2020 U.S. Merchant Services Satisfaction Study from J.D. Power, U.S. Bank and BB&T rank highest in customer satisfaction among business owners. Survey participants were asked to rank merchant service providers based on cost of service, security/chargeback management, payment processing, equipment/technology, and interactions.
PayPal and Square ranked third and fourth in the survey, respectively, followed by Capital One, Bank of America, Chase and Wells Fargo. Overall, business owners reported an average satisfaction rate of 833 on a 1,000 point scale. The top performer, U.S. Bank, scored 882 points.
Despite strong customer satisfaction across the board, 27% of small business owners said they “definitely” plan to switch service providers within the next year. Millennial and Gen Z business owners reported higher overall satisfaction rates than older generations.
Interestingly, Internet-based businesses reported higher satisfaction rates than physically-based businesses (860 vs. 808). This could be due to the ease of payment processing online, compared to physical card readers. Small businesses that use wireless card readers, such as PayPal Here or Square, had higher satisfaction rates than those using point-of-sale terminals.