Bank of America Merchant Services (merch.bankofamerica.com), also called BA Merchant Services and Banc of America Merchant Services, is one of the largest merchant account providers in the United States. Surprisingly, Bank of America uses First Data and TSYS as its backend credit card processors rather than processing payments directly with the card networks. This partnership has resulted in a significant percentage of all U.S. credit card transactions being processed through Bank of America. A 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.
Bank of America was founded in 1930 and is headquartered at 100 North Tryon Street, Charlotte, NC 28255. The CEO of Bank of America Merchant Services is Tim Tynan.
Bank of America Merchant Services Products and Services
- Debit and credit card processing
- Tablet POS solutions
- Mobile phone processing
- Gift and loyalty programs
- E-commerce solutions
- International payments
- Most business types of any size, including retail, MOTO, e-commerce, and international
Sales & Marketing
Key Points - Sales & Marketing
|Uses Independent Resellers||No|
|Advertises Deceptive Rates||No|
|Discloses All important Provisions||No|
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. Other than reports of deceptive sales tactics by agents, Bank of America does not appear to use any misleading advertising or rate promotions. This has earned it a “B” rating in this category.
Bank of America Merchant Services Marketing Example
Costs & Contract
Key Points - Costs & Contract
|Early Termination Fee||Up to $495|
|PCI Compliance Fee||Up to $95/yr|
|Equipment Lease Terms||48 month / Non-Cancellable|
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). The company’s standard contract (available below) is reported to include a 36-month service agreement with a $495 Early Termination Fee (ETF). Additionally, sales reps often promote equipment rentals through First Data Global Leasing that include non-cancellable lease agreements of up to 48 months. Merchants are cautioned to fully read their service agreements before signing any documents and to avoid expensive leases by purchasing equipment outright. 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. 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. See the Bank of America Merchant Agreement.
Complaints & Service
Key Points - Complaints & Service
|Total Online Complaints||70+|
|Live Customer Support||Yes|
|Most Common Complaint||Hidden Fees|
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 ETF. 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.
Bank of America Merchant Services 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. The company’s score in this section is affected in larger part by the content of the complaints more so than the quantity of complaints.
Key Points - BBB
|Product & Service Complaints||3,870|
|Billing & Collection Complaints||1,745|
|Advertising & Sales Complaints||365|
|Guarantee Warranty Complaints||37|
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.
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 6,329 complaints filed within the last 36 months. Of the total complaints, 5,833 have been resolved to the customer’s satisfaction. 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.
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About Phillip Parker
Hi, I’m Phillip and I’m disgusted by the state of credit card processing in the U.S. and abroad. I believe that the industry has been overrun by people who engage in fraud and deception in order to steal money from hard working business owners. I’ve made it my mission to expose the companies and individuals who engage in predatory marketing, pricing, and contracts, or just provide terrible service. Along with uncovering the bad guys, I’ve also discovered the good guys who do stand out from the status quo. CPO is a website where you will find ratings and reviews of these companies along with advice on how to save money and which service providers consider. Together we can move the industry in a positive direction. If you would like to help support my work, please checkout “Fee Sweep” my eGuide to getting the lowest possible fees when accepting card payments. If you haven’t heard of “interchange” this advice will save you hundreds, even thousands, in processing fees.Schedule a Consultation with Phillip
Related: Phillip’s Top All-Purpose Merchant Account Picks
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