Bank of America Merchant Services Overview
Bank of America Merchant Services is the payment processing division of Bank of America. Rather than providing merchant services directly, Bank of America has partnered with First Data and TSYS to offer merchant accounts to business owners. Surprisingly, Bank of America Merchant Services has only existed since 2009, when it first teamed up with First Data. This alliance has made Bank of America Merchant Services one of the largest credit card processors in the country, as it is capable of marketing its merchant services to any of its customers who have business bank accounts.
Bank of America’s products and services for merchants are grouped within a suite of solutions dubbed “Paymentum.” These offerings include First Data’s “Clover” point-of-sale system, credit card terminals, check acceptance, e-commerce solutions, payroll software, gift card solutions, EMV and NFC acceptance, and PCI compliance options. Bank of America offers live chat support, phone support, and email support to all of its users, and the company’s president is Tim Tynan.
Bank of America is one of the largest merchant account providers in the United States. The company uses First Data and TSYS as its backend credit card processors.
Bank of America Merchant Services processes debit and credit cards for most business types, including Clover POS systems, check processing, and e-commerce solutions.
Bank of America Merchant Services is pursuing an independent solution to its payment processing needs, as they did not renew their contract with First Data.
In April 2021, BofA acquired AxiaMed, a health care processor. This acquisition signals that BofA is building a stable of processors.
The company offers a three-year contract with a $500 early termination fee, and has received more than 100 public complaints regarding its service.
Bank of America merchant accounts cost between 2.70% and 1.89% plus $0.20, with a flat rate of 3.5% plus $0.15 for keyed-in transactions. They offer non-cancellable equipment leases through First Data Global Leasing or Clover POS.
Bank of America Merchant Services offers storefront payment processing services, as well as virtual terminal and payment gateway services.
Bank of America merchants are charged an annual fee of $95 for PCI compliance, and their contract terms are not competitive with other providers.
Bank of America has received few complaints about its merchant services division. However, the few that have been reported are related to the $495 early termination fee and poor customer service.
A former Vice President and Operations Control Officer at BofAMS filed a whistleblower case in 2019, claiming retaliation for his complaints. He named the company and its parent, as well as two joint venturers, as defendants, and the SEC and OSHA.
Bank of America has been sued and fined many times, but it is difficult to determine which of these fines is related to their merchant services.
Bank of America Merchant Services has a low complaint rate, but there are no indications that its policies have evolved in merchant-friendly ways over its seven years of operation.
Bank of America is accredited by the Better Business Bureau and does not have a separate profile for their merchant services division. The bank has 6,577 complaints filed over the last 36 months, 2,772 of which were resolved to the merchants’ satisfaction.
Bank of America appears to market its merchant account services through its banking branches and internally employed outside sales representatives, but merchants report problems similar to those commonly found with independent agents.
Bank of America Merchant Services is a large provider of merchant credit card services, but the company’s services are criticized for predatory cancellation and leasing policies, and high early termination fees.
At a glance
Founded: 2009
Location: Charlotte, North Carolina
Acquiring bank: Bank of America
Website: merch.bankofamerica.com
Phone number: 1-855-833-3614
E-mail: Contact form here
Online reputation and reviews
There are approximately 100 negative Bank of America Merchant Services reviews across all consumer protection forums. Given the company’s size, this is roughly the amount of complaints that might be expected. The bulk of these complaints are related to the contract terms offered by First Data, which include long-term agreements, costly early termination fees, and non-cancellable equipment leases. Other complaints mention withheld funds and poor customer service through both Bank of America and First Data. It appears that Bank of America banking customers are just as likely to experience these issues as non-Bank of America customers.
Legal actions and lawsuits
There are no outstanding or recently resolved legal actions related to Bank of America Merchant Services at this time.
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