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Phillip Parker

Phillip Parker is a former merchant services agent turned small business advocate and the author of "Fee Sweep," which teaches merchants how to dramatically lower their processing rates, eliminate junk fees, and avoid fine-print scams. He founded CardPaymentOptions.com to help merchants enact positive change in the credit card processing industry.


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29 comments

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  1. Wendy hobbs

    BOA merchant services are terrible. They are not for small businesses; charge lots of fees and offer faulty equipment. Their services or lack of cost me a lot of inconvenience, time and money for me and my clients. Awful!Just awful.

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    1 / 1 found this review helpful.
  2. Nicholas

    Horrible, confusing, and expensive. You’ll be charged more fees than you can imagine, and it is IMPOSSIBLE to figure out what rates you are actually paying. And the $500 termination fee is just plain predatory. STAY AWAY!

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  3. brian

    I was mislead and am now stuck with a costly device for 4 yrs. The hidden fees were never
    discussed and the monthly fee is twice as much as the original price. Crappy customer service that
    ends up transfering 6 times each time I call. I received nothing as promised. Look before
    you leap.

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  4. Eduardo

    All of our accounts with Bank of American were closed by the bank in February. We were given no reason other than it was permissible under our contract. 2 business and 1 personal account, totaling 6 accounts and 2 credit cards. We lost a lot of business but quickly moved to another bank.

    Much to my surprise I received a collections notice from Bank of America Merchant Services in late May. They kept charging fees and didn’t close the account until early May. They claim to be separate from BofA and that it was OUR RESPONSIBILITY to notify them that they had closed our accounts. They also charged a $500 early termination fee even though they are the ones that closed the account. There were no notifications of fees over the last 3 months.

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    1 / 1 found this review helpful.
  5. Edgar Magallanes

    My name is Teresita Magallanes, I owned Manila Florist HQ, a Home Based Flower Business. I signed up for Bank of America’s credit card processing using their smart phone attachment similar to “SQUARE” and “INTUIT” credit card reader. The contract that I electronically signed specifically states that there is no monthly fee for the service, after a month of doing so, BOA started charging our bank account $25.00 a month, I disputed this to no avail, finally I want the service to be discontinued, because this the same service is available for free with SQUARE. Now BOA charged me another $100.00 for early termination. And so I requested a copy of the contract that I signed which they sent thru Fedex. I found out that THIS IS NOT the contract that I electronically signed (I saved & kept the email contract stating there’s no monthly fee) Can they do this? Please we need help.

    Edgar & Teresita Magallanes

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  6. Edgar Magallanes

    We have a home based Flower business and I needed a way of accepting credit cards.
    I have SQUARE and INTUIT card reader (which is FREE) that I have used in the past.

    I signed up with Bank of America because we have our checking and savings there.
    Our business account was with them too.
    I was specifically that the service has no monthly fee just like SQUARE and INTUIT just certain
    percentage of the total amount everytime that we have to use it.

    After a month Bank of America started charging $25.00 a month for merchant services.
    I wanted to cancel the service now they wanted me to pay another $100.00 cancellation fee.
    DO NOT SIGN UP TO THIS SERVICE. THE REPRESENTATIVES WERE VERY DECEPTIVE.
    THEY WILL CHEAT AND LIE JUST TO GET THE COMMISSION

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  7. Sharon

    I have had a horrendous experience with Bank of America merchant services. I have never had a charge back yet because I had a better then expected month in January they called and told me that they would need to keep 50% of all of my transactions up to the value of $50,000 as they now deemed this money at risk. I asked when this would be returned and they said perhaps in a year but it all depends. I cancelled my account in February and despite STILL NEVER having any chargebacks they are still holding $5,000 of my money 8 months later.

    I have used Square for 9 months who have been FABULOUS!! I get paid out in less the 24 hours in all cases and have had none of the issues that were created by Bank of America.

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    1 / 1 found this review helpful.
  8. Jerry

    I had very bad experience with Bank of America Merchant Services. It’s a scam ! The first salesperson promised not commitment by use their services. She give me a promotion” not charging for device ($100), monthly service fee ($10) ”and flat rate 2.75% by using their device at least one year” when I decided between B-square and Bank of America Merchant Services. She called me , and said B-square has bad customer service and high rate transaction charging fee. They are “ THE BEST” company. After I signed the papers, the first salesperson disappeared. There was other guy contact with me after that if I had questions. Today the accounting manager called me, tell me different store… I bring all my documentation to the bank of America this afternoon. The personal account manager called merchant customer services. but they believe I signed the papers that mean I agree with 3 years contract , even they can’t provide any paper I signed with words ‘3 years commitment’ … All four people from bank of America merchant services have their different stories I can’t even trust one! The only thing they want to do is taking your money from your pocket! If you want your life become worse TAKING THEIR SERVICES! AMEN!

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  9. Navin Johnson

    I loathe BofA. I started with BofAMS for mobile card processing so I could accept cards. They lied about being able to cancel as well as the fee schedule. Their promised 2-2.25% became 3.5-3.75%. DO NOT US THEM!

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  10. Jackson

    Bank of America Merchant Services “SOLD” me on the fact that I could cancel at any time. Once I cancelled I had a bill for 1200 dollars, stating I owed for the terminal. Upon reading the contract carefully I found out they had contracted another company to lease me the machine. And that company would not cancel the contract. I was a victim of a classic fast talking salesman scheme. The Representative Vijay Givens, intentionally mislead me to make a sale. Not the type of service I expect from Customer Service.

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    1 / 1 found this review helpful.
  11. G

    I was a prior sales rep for the company in 2012 covered 3 markets and the organization is terrible to work for. When I first started working for the bank, they cared about the client. Now all they care is about POS revenue and bill-back surcharge pricing, which kills the client and leaves a bad name for the personal bankers that refers the clients.
    The leadership comes from Wells Fargo and looks like they just hire Wells Fargo reps the last 3-6 months. I worked 50-60hrs a week and it was so not worth it. Dealing with uncooperative banking center managers and personal bankers that can’t sell or consult makes this job even harder to do.
    Now that I’m still dealing with HR for Nov/Dec commissions for over a month now, it’s made my experience even more a challenge and I’m very upset that I put that much work in. I feel squeezed and embaressed to be apart of that organization that I help built and made a name of.
    I feel bad for all the bank clients and business owners that have to deal with an organization that only cares about revenue not the client. It left a bad industry taste and I will never work for corporate environment again. I wonder why they aren’t on the BBB, they are just a partner to the bank that kills relationships.

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    1. HKK

      Our local BOA banks were purchased by a local bank but I had decided to stay with BOA merchant services since I’ve been with them for 10 years. When I called to give them the new account information they said it’s all good and everything’s updated. Until I realized my batches were not transferred to my new checking account. I called and they said they don’t update such information over the phone so I need to send them a voided check to show proof. I did. I called back again and everybody was giving me the run around. This was 03/27 batch which I still haven’t received the funds for. Today, I called and spoke with more idiots who kept giving me the same answer : “We’ll send an e-mail tour reject department. ” Basically, my 03/27 batch was submitted to my old bank account which is closed since 03/25 so they sent the funds to their reject dept. Now I can’t get my money back. As soon as I get my funds, I will switch to another merchant company.

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  12. Ed

    I agreed to my BofA Merchant Services account over the phone with a Merchant Services rep. I was never told about the $95 yearly service charge which made my account overdrawn. The Merchant rep sent me a copy of the paperwork which had my signature on it but it was a cut and pasted signature. My lawyer says this is fraud. Has anyone else experienced this cut and paste signing of the contract? Also I was not told about the $500 termination fee. Has anyone else taken BofA to court over this? What was the out come?

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    1. Karol

      I talked to their Legal Dept. on a chargeback issue, and the lady in the Legal Dept said I signed a contract and that she had a copy of it. So I demanded that she send me a copy (I know I didn’t sign anything). Then she just sent me a copy of the form transition letter claiming that we had entered into the agreement by completing the terminal software update. It seems that they are hoping that you’ll go away by just telling you that you have signed an agreement, like “saying so makes it so” — it’s either arrogant or incompetent, or both. Have their Legal Dept ever heard of Statute of Frauds?

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  13. Jerry

    I am trying to cancel my BofA merchant service account and was shocked to hear about the $500 early termination fee. I was shocked because we specifically told the sales agent we did not want a long term agreement due to a bad experience with another company and we have no record of ever signing a three year agreement. Somehow, BofA came up with an agreement that they claim I signed but it does not look exactly like my signature. Furthermore, the sections of the agreement that should have been hand written by me are all typed. We are now considering a lawsujit against BofA for fraud and forgery. I would be very interested if others have had a similar experience with BofA.

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    1. Whitney

      Jerry, I have had the same problems. I used Bank of America because they promised that if I could find a better/cheaper service then I would get $500. They told me about what they charge per transaction and that I would NOT have any monthly or yearly fees. My sales associate told me that I would only have a $35 start up fee. Since then, I have only used my merchant services account ONCE for $50 but I have been given over $340 in fees. I have been in tears because I’ve felt so defeated dealing with them. When I received my mobile equipment, someone called to walk me through how to use the app. He had me get one of my own cards and charge $1 on it, which we then refunded. A month later I received a collections notice for $135. The $35 was for the start up fee, the $100 was because when I rang up the $1 there was not a correct acct number to deposit in. My sales assoc had entered in the WRONG acct number to link to my mobile card reader. They tried to charge me $100 for her mistake. I also tried to get them to waive the $35 fee because of this mistake. What if I had actually charged someone a substantial amount? That NEVER would’ve made it to my account AND I would’ve been charged another $100 fee! They finally agreed to waive the $100 fee but would not waive the $35 fee. One month later, I noticed that my business account was drained. I am trying my best to open a new bail bonds business. Just like any new small business, money doesn’t come easy. I had a very small amount in my business account but Bank of America took $95 without notice for a “yearly charge”. My sales associate NEVER mentioned that I would have to pay $95 a year, NEVER! When she met me for breakfast to just “apply” for the service (which I now realize that she had me signing a contract that I was never given the opportunity to read because it was on her laptop and she would just have me type things here and there and then I signed an electronic pad, I thought I was just signing the application). So now everything I have worked for has been taken by BoA. This weekend I received ANOTHER collections notice saying that I owe them $200 for past due monthly fees. 1) I’ve never gotten a bill from them, only collections notices and 2) I was told that there would be no monthly fee. Luckily, the customer service rep this time was very friendly and after listening to my story she agreed to waive the fees. I said that I just wanted to cancel my account and she informed me that there is a $500 early termination fee. WHAT!?! I would have NEVER signed a contract agreeing to that if I would have known. Apparently it is a 3 year agreement. I am trying to start a new business that I don’t know if it can make it ONE year, let alone THREE. This is robbery! I was duped into signing a contract when I believed that it was only an application. There should be criminal charges brought against these sales people and this evil cooperation. If all else fails I will just close all BoA accounts and never pay them. I have outstanding credit and I hate to ruin it over these crooks, but I’ll be damned if I give them another dollar. If you get a class action lawsuit going, you let me know! I’m in!

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  14. Irene

    Do not use Bank of America Merchant Services, its the worst business decision I ever made in my life.

    I was told there was no contract this is why I started using there merchant services.

    There’s a $500 early termination charge, if you decide to discontinue the service before 3 years. They do not tell you this when you signup.

    There are a lot of hidden fees that are not explained during the signup process. I was told there was only a 1.64% and an additional 1.00% if you do a manual entry.
    At first the card would slide just fine then after a month of using the equipment I had to enter most of my cards manually and I started getting additional fees.

    If you have less than the agreed monthly transaction, then a flat fee of $25 be applied to your account monthly. This is what is told. I was getting charged $15 fee even when i was meting the required transactions. plus other fees.

    I have business accounts and personal accounts with BOA and it is the time to cancel them now.

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    1. Jerry Rega

      The exact same thing happened to me regarding the $500 termination fee. To make it worst, BofA presented a “signed” contract that I never signed.

      [redacted contact information]

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  15. John F. Burke

    Due to the ineptitude of a local BofA manager, we closed our corporate accounts and moved them to another bank. We also advised Merchant Services that we wanted to close the account (we had been First Data for years before moving to BofA at recommendation of our bank). They said it would be a $500 cancellation fee — I said leave the account open, send us monthly bills, and we’d wait out the term without using the account. We then followed that conversation up in writing requesting that billings be sent to us, since the checking account was closed.

    At the end of the month, they tried electronically debiting the closed account and it was refused. When seeing that we again sent them a letter saying to send us the bills by mail or email. Today we get a bill from collections for the $44.95 fees and $100 penaltty. We will now be closing all remaining accounts with BofA and moving them elsewhere while we fight this outrageous billing practice. Our new bank, by the way, has no penalties for terminating merchant agreements — and they’re less expensive. By the way, we were a totally electronic account — no hardware or equipment.

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  16. Aliya

    I had 3 merchant accounts with BOFA for the last two years. At our first location we have used FD50 terminal which we leased, although when we opened second location our merchant card specialist recommended wireless terminal FD 400 ti. We signed all papers; he said that we would pay $43 a month for leasing it and since our location is only for summer-winter season we could save money on equipment . We switched to the wireless terminals, and I sent non wireless terminal to them with no problem. In December 31st I called to our credit card specialist to ask about sending back all two terminals. He said that (surprise) we couldn’t return them since we signed lease for 48 months! Then he said that it is his fault that he didn’t let us know about terms of contract and he would try to help us. In two months he e-mailed us that we could buy them for $795 each, how nice, we paid $43 for leasing them for a year and now have to buy them for the price much higher than they are on the market. We agreed to pay $1600 for these terminals, signed papers, I sent them on time. In a month there wasn’t any e-mails from our merchant assistant about it. We closed business in January 31st, I called to BOFA merchant services to cancel all our services with them, double checked if we have any outstanding balances since we were not going to keep money on our business account, and I didn’t want them charge my account and get overdrafts. In March 15th my account was charged for terminals and some extra fees but we didn’t have enough money because NOBODY told us that they will debited our account automatically with no invoice or statement. I called to BOFA collection department and asked why they charged us not only for terminals but got extra “fin, charges” for $75.54 and $50. After staying on the line for thirty minutes she couldn’t find any explanation of these “addl fin. charges” and said that they would reverse $75.54 and $50. On Friday my account WAS CHARGED for $75.54. They didn’t reverse anything, instead they stole $75.54 from my account . I call them 6 times and nobody helped me, they couldn’t even “see” these amount on their system! They stole $200, and on 04/04 they charged me for leasing terminal! Terminal we bought month ago! BOFA stole $245 from us, and I am so tired and upset to call them every morning, nobody cares, we paid them over $1000 a month last two years for their services! Do not trust your business to BOFA merchant services!

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  17. Paula Ferreira

    Terrible service. I had unexplained fees taken out of my account, and to have them refund me the money took a lot of time and phone calls. To the point where I had to start blocking my phone number so the person that deals with my account would actually pick up the phone. So I finally had the refund to my account. I thought it was not going to happen again. But they again overcharged me just yesterday. So I picked up the phone and called (anonymoulsy) and complained, have not heard a peep from them yet. I would like to know if there is a penalty for canceling the service.

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  18. Amanda

    Yes, I canceled my merchant acct with you guys back in Dec. I didn not breach my contract. Tuesday the 17th, you guys took $500.00 out my personal checking acct. I called and thought i had all squared away with you guys and i was told i would recieve it back with in 48-72 hrs. I did not receive it. I called again on the 20th and actally talked to an Acct Specailist (Adam) and he told me that nothing was ever processed and it was an early termination fee. He looked into it more and saw that my contract was not breached. No one could tell me why it actually happened, that it just did. So he told me that he would put a rush on it because i was givin the run around by several different people and to call and check on Mon which is today Jan 23rd. I called, got throught to a customer representative named (Tasha), she called the acct specailists for me to try and connect me and she then got back to me and said the sometimes don’t like taking phone calls. I said i was told to call them and i need to talk to someone on the status of my refund and she said she would try and call them back. So I was on hold for awhile this time, she got back to me and talked so fast that i couldn’t understand her and I said “what?” she then quietly said “Oh my god” and then repeated herself. Very extremely RUDE considering the whole situation. You guys take $500.00 from me for no reason, so im out that money for a week now when I have to pay bills and you guys have been giving the run around and then a very rude customer service representative tells me i should get it by later today or tomorrow morning. I will be reporting you guys to the Better Businsess Bureau.

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  19. Neil Horsfall

    Bank of America cost my business thousands of dollars! When we were first opening PNS we decided that we were going to use BOA as our credit card processor. Like alot of people when they start a small business our credit wasn’t excellent, but not terrible either, so we were told that we should do a credit exception, which would take 24-48hrs to be approved. At which point i explained to the representitive (Vijay Givens) that we were in a rush and had already been approved with a third party processor, she assured me that it could be done quickly.
    48 hours later i had received no phone calls from her, so after leaving 5-6 messages for her i finally got a return call, at which point she told me that the credit exception had been approved and that i now had to fill out the application and it would be 5 days to process, I again explained that we were in a big rush now and that 5 days would be close, she again assured me that it had already been approved and that it would be 5 days maximum. So we filled out the application and faxed it back and waited 5 days, again no phone calls. I left 10 messages a day for the next 6 days and got no response. Finally 15 days after i filed the application i got a phone call telling me that our application was denied!
    I then spent the next 2 days trying to get in contact of any executive that could help me, I finally get a hold and executive and explain that my advertising is running but i have no way of taking peoples money!
    She tells me that it is not denied that i just need to send them a business plan and in 24hrs everything will be ready and assures me that we will be compensated for our loss of advertising. So we send them the business plan, and again, no phone calls. after calling again all day, i finally get a phone call telling me again that our application is denied!
    So we ended up telling them that we didnt want the merchant account through them and moved to a different processor! We are yet to see any compensation for the thousands of dollars we lost in advertising.

    This is the worst customer service i have ever dealt with in my life!

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  20. Mark

    Horrible pricing. That minimum discount rate, plus the account fees, plus the service charges had me running more than 5% per month. When you ask for a rate review, you’re told that you’re at 1.6% – but almost NO CARDS EVER QUALIFY for that rate. There’s always some excuse why they have to charge more. Plus $400 upgrade to equipment.

    Customer service was always good, and processing times reasonable, just not very competitive on the pricing for a small business. If you’re a large business who can routinely meet the minimums and are willing to pay top dollar for good service, then they’re a good fit.

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  21. Ivan

    BOA has the worse merchant service at least it is not a good one. The customer service rep tried to push away all the problems made by boa system error, and they claimed it was all our fault.

    It was because of the system error causing the duplicated transaction and my company did not get paid from the duplication error. However, boa took the money out of my account for the money i never received. They insisted the duplication money went into my account, but there was no extra money at all except the actual sale amount. I told them I could show them the bank statement and all the credit card sale record for the date and anything else they wanted. But they said they could not do anything because their system showed the duplication money ( second-time charge) was summited to my account. But I only get paid for what i sold. I did not get double paid even the transactions were duplicated. I requested to see an supervisor and the supervisor told me I got the duplication money and they could not do nothing else. i called the BOA Merchant guy who sold me the merchant service. He was nice at the beginning, but he lost his patient as things go complicated and told me he was not able to help me anymore and also claimed i got the duplication money. I mean BOA should not treat their customers like this. I have business accounts and personal accounts with BOA and it is the time to cancel them now.

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  22. Mark

    I have used BOA for 2 years with no problems. The customer support has exceeded other third party processors. The rates are competetive, and the money hits my account the next business day.

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    1. ivan

      I have been using boa for 1 year now and, yes, you are right about boa merchant service and I totally agree with you only when not hurting their benefits. They treat business owners like us very well until things really happen. I cant believe what they did to me. They took my money out of my account with no permission or notice for the mistake they made because of the system error. I tried to explain what was going on and they insisted they were right about their decision and refused to talk to me. The sale guy who sold me the service told me not to call him because it is not his business. I am not gonna use their services anymore. Worse after-sale service ever.

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  23. Dave

    This is a marketing gimmick and even an outright lie, “A main benefit of having your business checking account and merchant account through Bank of America is that your credit card sales will usually be deposited a full day sooner than if you were with a third party processor”.

    It takes 3-4 business days to get the money deposited into the bank account after the transaction is approved.

    There are a lot of hidden fees that are not explained during the signup process, which always happen over the phone.

    Contracts are faxed, and have poor quality (even if you receive it via email), small prints are hard to read, and hidden fees are placed in small prints.

    There’s a $495 early termination charge, if you decide to discontinue the service before 3 years.

    If you have less than the agreed montly transaction, then a flat fee of $30-40 will be applied to your monthly bill. REALLY BAD for startup business.

    Do not use Bank of America Merchant Services, its the worst business decision I ever made in my life.

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    1. Phillip Parker

      Hi Dave,

      Thank you for the comment. The benefit I mentioned may be a marketing gimmick, as you have suggested, but it is definitely not a lie. I know many merchants who use Bank of America Merchant Services just because they get their credit card sales deposited into their BofA checking accounts the next business day. From what I understand, it’s done by means of a “memo post” which is a notation posted to the checking account which indicates a credit has been received from the merchant account, but has not yet been posted to the checking account. It allows the merchant to go on about their business as if the money has actually been deposited.

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