We take our role in providing guidance and education regarding the card payment industry very seriously. At our own expense, we have vigorously defended our right to continue expose unethical and predatory practices in the industry, successfully defeating every attempt to silence us. However, fending off frivolous lawsuits is costly. To sustain these efforts, one of the ways we generate revenue is through affiliate partnerships with ethical providers. This means that some of our outgoing links connect business owners to trustworthy, low-cost payment processors, which is what most of our readers seek. We see this revenue channel as a win-win-win for everyone involved. Business owners find good processors, processors get good clients, and we are able to continue to provide a valuable service to the small business community. We also recommend and link to many services that do not compensate us. Our priority is to guide you to the best solutions for your needs, regardless of potential revenue. If you have questions, please feel free to contact us.
All mentions of rate and fee costs are estimations based on publicly available information and client feedback. Actual costs may vary based on a variety of factors unique to your business.
Pros and Cons of Bank of America Merchant Services
Pros
Diverse processing options
Nationwide branch accessibility
Advanced security features
Cons
Limited pricing transparency
Higher fees possible
Potential cancellation fees
Complex pricing structure
Customer service complaints
Overview
In this review of Bank of America Merchant Services, we take a close look at one of the largest merchant-account providers in the U.S., from a business owner’s viewpoint. We’ll examine the services they offer including credit card and electronic payments, POS systems, e-commerce payment solutions, and what it takes if you use their hardware. We’ll also dig into their fees, rates, and contract terms, plus what customers are saying and any lawsuits related to them. Our goal is to show both what works well and what to watch out for, so you can see if BAMS is a good fit for your processing needs.
About Bank of America Merchant Services
Bank of America Homepage
Bank of America Merchant Services, also called BA Merchant Services, is one of the largest merchant account providers in the United States. Prior to June of 2020, the company acted as a reseller of First Data (now Fiserv) rather than processing payments directly with the card networks. However, in the joint venture has since dissolved and Bank of America acts as its own credit card processing service
A Forthcoming End to its First Data (Fiserv) Partnership
Bank of America Merchant Services has had a contract with First Data (Fiserv) to service their payment processing needs. The contract ran until June 2020, at which time their partnership was not renewed. This will invariably change the landscape of Bank of America Merchant Services’ rate and fee structure. As of this review, Bank of America Merchant Services is pursuing an independent merchant-acquiring solution yet to be disclosed, but the company has stated First Data (Fiserv) will continue as an “important service provider supporting Bank of America’s global payment solutions.”
In April 2021, BofA acquired AxiaMed, a payment processor that primarily focuses on health care. This seems to signal that BofA is attempting to build a stable of processors in the wake of the First Data split, and it is likely we will see more processors come under the umbrella of the BofA empire.
Products & Merchant Services
Payment Processing
Bank of America Merchant Services facilitates the processing of all major debit and credit cards for various types of businesses. One key advantage of having both a business checking account and a merchant account with Bank of America is the expedited deposit of credit card sales, which usually occurs a day earlier compared to using third-party providers.
Clover POS Systems
Bank of America offers Clover POS systems, which provide point-of-sale solutions for diverse business needs. These systems include features such as payment processing, inventory management, and sales tracking.
Check Processing
Bank of America Merchant Services also offers check processing services, enabling businesses to handle check payments efficiently.
eCommerce Solutions
Bank of America provides various eCommerce solutions, including access to BigCommerce software, the (link unavailable) payment gateway, and Mail Order/Telephone Order (MOTO) services. These tools support online businesses by facilitating secure and efficient transactions.
Customer Reviews & Sentiment
Overview of Bank of America Merchant Services Feedback
Given its substantial presence in the merchant processing sector, Bank of America Merchant Services has attracted a relatively small volume of complaints, few of which label the company as a scam or ripoff. Most grievances from merchants highlight issues with nondisclosure of significant fees and contract terms, particularly mentioning a $495 early termination fee. Additionally, there are reports of unsatisfactory customer service and challenges in resolving disputes via the company’s support channels. Some feedback also touches on confusion regarding services provided through First Data (Fiserv), impacting the clarity of service provision by Bank of America.
Bank of America Merchant Services Customer Support Evaluation
Bank of America Merchant Services offers a range of customer support options, including phone, email, and chat support, aligning with expectations for leading merchant account providers. Despite maintaining a low complaint rate, the nature of reported issues suggests an area for improvement in customer service practices. The presence of substantial fees and reported challenges in service cancellation have influenced the company’s customer service rating.
Industry Scores & User Ratings
Online Ratings Summary
PaymentPop
1.7
BBB Rating
1.11
Our Rating
2.5
Average Rating
1.8
PaymentPop Rating for Bank of America Merchant Services
Negative Feedback
Been with BOFA for over 4 decades. They asked for a few pieces of information a couple of months ago. I sent them everything. Last week without any warnings, they closed my account. I wasn’t able to take any cards & lost business. Their phone operators are rude, unprofessional & unhelpful. Finally they told me that my business license was expired that was not true as I had sent them a current one that expires in 2 years. Apparently they wanted to open a new merchant account & sell me new equipment. Forget that, I went with another bank & I’m saving more money.
Positive Feedback
I’ve had a smooth experience with Bank of America Merchant Services so far, their customer support has been really helpful!
Bank of America BBB Rating
Bank of America, headquartered in Charlotte, NC, is accredited by the BBB since 11/1/1949 and holds an “A-” rating. It should be noted that (outside of this review) there are few review sites that separate BofA’s merchant services division from the rest of its business, which is substantial. Thus, we’ll include a review from the BBB here as an example of the company’s services in general, but we will not include other reviews.
The bank has been in business for 76 years. It has an average customer review rating of 1.11/5 stars based on 1,180 customer reviews. There are 7,585 customer complaints closed in the last 3 years, with 2,609 complaints closed in the last 12 months. Common themes in the reviews and complaints include issues with customer service, problems with products/services, and billing disputes.
Negative Feedback
I would not even give 1 star. This is the worst bank ever. I would not recommend this bank to anyone. They closed my sons account without his knowledge and they keep saying a check will be issued for the $5000 that was in his account and he is still waiting
Positive Feedback
There are no positive reviews published about Bank of America on the BBB website.
Processing Rates & Fees
Updated Rates and Fees
Bank of America has significantly modified its rate and fees since our last update. Prior to this change, the company faced considerable backlash over its use of confusing fee structures, hidden fees, and long-term contracts with high early termination fees.
In reviewing the updated pricing structure, new credit card processing customers of Bank of America Merchant Services are being offered much better terms and fees. It’s clear that the company aims to move forward with simplified and competitive pricing options, with an emphasis on transparency and no long-term contractual obligations. Their pricing model is marketed to cater to various business needs, whether operating in-store, online, or on-the-go.
Bank of America Merchant Services presents a tiered pricing structure based on the type of transaction processing. For swipe, dip, and tap transactions, the rate is set at 2.65% plus 10 cents per transaction. E-commerce transactions are priced at 2.99% plus 30 cents, while keyed transactions cost 3.50% plus 15 cents. This clear delineation of rates based on transaction types will allow businesses to anticipate their processing costs more accurately.
Rate Discounts
Bank of America is also offering the potential for discounts on processing rates. Through the Preferred Rewards for Business program, businesses can earn a discount of up to 0.10% on their Merchant Services Simplified Pricing processing rate, with additional savings and rewards available. The tier rate discounts are categorized into Gold (0.05%), Platinum (0.07%), and Platinum Honors (0.10%), offering a range of benefits depending on the business’s enrollment level in the program.
Furthermore, Bank of America Merchant Services emphasizes the absence of hidden fees, early termination fees, and long-term contracts, underscoring their commitment to transparency and flexibility. This approach is particularly beneficial for small businesses and startups that require more adaptable financial arrangements.
In summary, Bank of America Merchant Services provides a clear and competitive pricing structure for new customers, with added benefits for those who participate in their Preferred Rewards for Business program. The absence of long-term contracts and hidden fees, coupled with tiered pricing based on transaction types, makes it a potentially attractive option for businesses seeking reliable and straightforward merchant services.
POS System and Payment Hardware Costs
Bank of America Merchant Services offers a diverse range of point of sale (POS) hardware solutions, each tailored to meet the needs of various business types. Here’s a breakdown of some of the hardware costs across different categories:
Stationary Terminals
Smart Register E800: A comprehensive POS device with dual touch-screen displays and a built-in 3” printer, priced at $1,439.00. Suitable for businesses that require a robust, stationary system.
Smart Terminal E700: A fully-featured POS device with a built-in screen and printer, offering a smaller footprint for $1,129.00. For businesses needing a compact version similar to the E800.
Countertop A80: Priced at $359.00, a straightforward countertop solution.
Portable Devices
Portable A920: An all-in-one portable device that processes payments and prints receipts, priced at $529.00.
Mobile Card Reader D135: A Bluetooth card reader that pairs with a smartphone or tablet, allowing for mobile payments at $99.00.
Payment Processing Accessories
In addition to payment terminals, BofA also offers a variety of accessories often needed at the point-of-sale.
Countertop Barcode Scanner: A scanner with a small footprint, available for $319.00.
Handheld Barcode Scanner: Priced at $389.00.
Cash Drawer: An integrated cash drawer that opens automatically during transactions, available for $209.00.
Weight Scale: For businesses selling products by weight, this scale is priced at $999.00.
Thermal Printer: A printer with an auto paper cutter and anti-jam guide, available for $319.00.
Portable A920 Charging Base: A charging base for the Portable A920, priced at $79.00.
Mobile Card Reader D135 Charging Base: An optional charging base for the D135 Mobile Card Reader, available for $54.99.
Examples of BofA Payment Hardware
Lawsuits & Legal History
In 2019, Bank of America Merchant Services (BofAMS) faced a notable whistleblower lawsuit concerning allegations of non-compliance with Payment Card Industry (PCI) standards. The case highlighted concerns over data handling practices and misleading customer assurances about PCI compliance. Despite these serious allegations, no outstanding class-action lawsuits or Federal Trade Commission (FTC) complaints directly targeting BofAMS have been identified. Merchants with grievances are encouraged to seek resolution through appropriate supervisory bodies.
Employee Reviews & Sales Practices
Bank-Based Marketing Channels
Bank of America appears to primarily market its merchant account services through its numerous banking branches and internally employed outside sales representatives (as opposed to independent contractors). Although the company uses its own sales force, merchants are reporting similar problems often found with independent agents, such as nondisclosure of fees or important contract conditions prior to account setup. This does not compare favorably to our list ofbest credit card processors. If you suspect that a Bank of America representative has added undisclosed fees to your contract, we recommend seeking an independent statement audit.
No Deceptive Quotes
Other than reports of deceptive sales tactics by agents, Bank of America does not feature any misleading advertising or rate promotions in its official materials. This has earned it a “B” rating in this category.
Bank of America Merchant Services Competitors
Compare Bank of America Merchant Services to competitors that earned top marks.
Bank of America Merchant Services is responsible for a large percentage of merchant credit card transactions in the United States, and the vast majority of business owners appear to be satisfied with the service. However, the company’s rating is suffering in this review due to reports of deceptive sales tactics, predatory policies regarding canceling service and leasing equipment, and high early termination fees. Despite Bank of America’s large market share, many small business owners may be better served by working with a top-rated merchant account provider.
