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Compare Bank of America Merchant Services
Bank of America Merchant Services, also called BA Merchant Services, is one of the largest merchant account providers in the United States. Surprisingly, Bank of America uses First Data (now Fiserv) and TSYS as its backend credit card processors rather than processing payments directly with the card networks. The company has also promoted POS systems through Clover. This partnership has resulted in a significant percentage of all U.S. credit card transactions being processed through Bank of America.
Bank of America Merchant Services Payment Processing
Bank of America Merchant Services processes all major debit and credit cards for most business types. Their services include Clover POS systems, check processing, e-commerce solutions including the BigCommerce software, access to the Authorize.Net payment gateway, and MOTO. The main benefit of opening 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 merchant account provider.
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.
Location & Ownership
Bank of America was founded in 1930 and is headquartered at 100 North Tryon Street, Charlotte, North Carolina 28255. Brian Moynihan is the CEO of Bank of America and LinkedIn lists Guy Harris as the head of merchant services.
Table of Contents
- Costs & Contract: Offers a three-year contract with a $500 early termination fee and…
- Complaints & Service: Has received more than 100 public complaints regarding…
- BBB Rating: Has been accredited by the Better Business Bureau since 1949 with an “A+” rating but has received 6,577 complaints and 540 reviews in regards to…
- Sales & Marketing: Hires independent sales agents and has received a moderate number of complaints about its…
Bank of America Merchant Services Reviews and Complaints
Here's What Their Clients Say
Total Online Complaints
Live Customer Support
Most Common Complaint
Low Complaint Total
Considering Bank of America’s enormous market share in the merchant processing industry, the company has received relatively few complaints accusing its merchant services division of being a scam or a ripoff. Of the complaints that merchants have reported, most are regarding nondisclosure of important fees and contract terms prior to setting up an account, specifically the $495 early termination fee. Many merchants also reported receiving poor customer service and difficulty resolving problems through the company’s support channels. A small percentage of complaints, similar to those found here, express frustration with the fact that Bank of America did not clarify that merchants would be receiving service through First Data (Fiserv).
Bank of America Merchant Services Lawsuits and Fines
In 2019, BofAMS was sued in a major whistleblower case. According to The National Law Review, a former Vice President and Operations Control Officer at the Company, filed a whistleblower retaliation action against Company, its parent, and two joint venturers (the “non-Company Defendants”), alleging his employment was terminated in retaliation for his complaints regarding Company’s purported failure to comply with Payment Card Industry (“PCI”) standards. Specifically, he alleged that the Company, an entity that provided payment processing services to other companies and municipalities, not only failed to handle consumers’ personal data in compliance with PCI standards but also knowingly misled its customers into believing that it was, in fact, PCI compliant. Following his termination, Plaintiff filed whistleblower retaliation complaints with the SEC and OSHA, alleging wrongful conduct by the Company but only naming the remaining defendants in the context of explaining their relationship to the Company. Part of the case was dismissed, while part of it appears to still be in process. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.
An additional lawsuit was brought against BofAMS in 2019, which dealt with an alleged patent infringement.
Bank of America Merchant Services was sued in 2021 in a class-action lawsuit over excessive fees. The suit is currently ongoing.
BofA is also one of the most heavily fined companies in history, though it is difficult to determine which of their many fines (equalling many hundreds of millions) is related to their merchant services.
Bank of America Merchant Services Customer Service Options
Bank of America offers phone, email, and chat support to all of its merchants, which is consistent with our expectations of top-rated merchant account providers for customer service. The company has kept its complaint rate low over its seven years of operation, but there is no indication that its policies have evolved to become more merchant-friendly over that period of time.
We have located a single Bank of America Merchant Services customer service phone number:
The company’s score in this section is affected in larger part by the consistent content of the complaints more so than the quantity of complaints.
Bank of America Merchant Services BBB Rating and Report
Our Better Business Bureau Profile Assessment
See Which Processors Offer No Monthly Fees And No Contracts.
Product & Service Complaints
Billing & Collection Complaints
Advertising & Sales Complaints
Guarantee & Warranty Complaints
Note: We have adjusted this company’s BBB rating according to our own standards. To better understand why we adjust BBB ratings, please see our Rating Criteria.
No Specific Merchant Services Profile
The Better Business Bureau does not have a separate profile for Bank of America’s merchant services division. The bank itself has had BBB accreditation since 1949 and currently holds an “A+” rating based on 6,577 complaints filed within the last 36 months. 3,816 complaints relate to a problem with a product or a service, 989 relate to billing or collection issues, 1,515 deal with advertising or sales discrepancies, 115 are in regard to a guarantee or warranty problem, and 142 concern a delivery issue. Only 2,772 of these 6,491 complaints were resolved by the company to the satisfaction of the merchant. The remaining 3,719 were resolved to the dissatisfaction of the merchant or received no final response. Given the fact that this profile is not specifically dedicated to Bank of America Merchant Services, we will not factor it into our overall rating.
Bank of America Merchant Services Fees and Rates
A Closer Look at the Contract
Don't Fall Into An Expensive Trap. See Who The Worst Processors Are.
3.50% + $0.15
Virtual Terminal Rate
1.00% - 4.99%
Payment Gateway Fee
Early Termination Fee
PCI Compliance Fee
Up To $95 Per Year
Equipment Lease Terms
48 Month (locked)
Costs and fees of a Bank of America merchant account appear to vary based on a merchant’s business type, processing volume, sales representative, and the merchant’s skill in negotiating pricing (see: Fee Sweep). Merchants with a sales volume under $5,000 a month are given a swipe rate of 2.70%, between $5,000 to $9,999 at 2.30% plus $0.20, between $10,000 and $24,999 at 2.05% plus $0.20, and $25,000 and over at 1.89% plus $0.20. A flat rate for keyed-in transactions of 3.5% plus $0.15 has been reported by merchants. The company’s standard contract is reported to include a 36-month service agreement with a $500 Early Termination Fee (ETF).
Bank of America sales reps may also promote long-term, non-cancellable equipment leases through First Data Global Leasing or Clover POS. Merchants are cautioned to fully read their service agreements before signing any documents. We also recommend purchasing equipment outright whenever possible rather than leasing it.
Virtual Terminal and Payment Gateway Pricing
In addition to its storefront payment processing services, Bank of America Merchant Services also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing is not disclosed on either of those services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.
Not Competitively Priced
As of this review, we did not find any reports indicating that Bank of America charges the widely despised annual PCI Compliance fee, but multiple merchants report a $95 annual fee that may simply be PCI Compliance under a different name. Overall, the existing reports of Bank of America’s contract terms are not competitive with the cheapest merchant accounts available. If you have any further information regarding the standard Bank of America Merchant Services fees or contract terms, please leave it in the comment section below this review. We also encourage merchants to check out our list of the providers of the best merchant accounts.
Bank of America Merchant Services Jobs and Employment
Hiring Standards and Ethical Marketing Assessment
Audit Your Current Statement To Find Its Hidden Fees
Processing statements are intentionally complicated so that they can overcharge you. Get clarity before you switch.
Uses Independent Resellers
Advertises Deceptive Rates
Discloses All important Provisions
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 of best 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 Review Summary
Our Final Thoughts and Opinions
An Average Option for Most Business Types
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.
Customer & Employee ReviewsWhat Others Are Saying About Bank of America Merchant Services