Bank of America Merchant Services Review
Bank of America Merchant Services is a joint venture between Bank of America and Fiserv that sells merchant services products to small business owners. Among the Bank of America Merchant Services options are payment gateways, point of sale systems, and check acceptance services.
As you grow your business and reach more and more customers, you’ll need to begin setting up systems for accepting diverse forms of payments. Whether you simply want to begin accepting credit card payments or you want to update and optimize systems that you already have, you’ll need to look into your merchant services options, one of which is Bank of America Merchant Services.
In this review, we’ve gathered all of the details you need on Bank of America Merchant Services—including info on credit card processing, service fees, and account settings—into one resource.
Here’s all you need to know about Bank of America Merchant Services to determine if it’s the right option for your business’s merchant services needs.
Bank of America Merchant Services: The Basics
The first thing to understand about Bank of America Merchant Services is that it is a joint venture between Bank of America and Fiserv (formerly First Data.) The way it works is that customers will go to their local Bank of America branch in need of merchant services, at which point they will be referred to a Bank of America Merchant Services sales agent to complete their transaction.
It’s fairly common for large merchant services providers like Fiserv to sell their products through subsidiaries, so this shouldn’t alarm you. However, note that most sales agents work on commission, which means they might try to up-sell you or lock you into long-term contracts—so tread carefully.
Also note that some customers who have reviewed these services online mention an early termination fee they face—Bank of America Merchant Services stopped charging their small business clients these early termination fees during the second half of 2019. There is no other type of cancellation fee either and customers have 30 days from when their merchant services equipment was shipped to initiate a return.
Now that you know how the organization works, let’s see everything Bank of America Merchant Services can provide to your small business.
Bank of America Merchant Services: Capabilities
The Bank of America Merchant Services fees you have to pay will ultimately depend on which—or what combination—of the following services you end up going with, as well as your transaction volume and industry.
Let’s take a look at each of the individual merchant services Bank of America offers:
If you’re looking for credit card processing services for your ecommerce business, then look into the Bank of America Payment Gateway option. This online Bank of America credit card processing service can work for most types of ecommerce businesses as well as small businesses looking to move into the ecommerce space.
If you set up a Bank of America merchant account for their payment gateway services, you’ll be able to easily integrate their secure gateway with your website and mobile app. The Bank of America gateway can work hand-in-hand with multiple online shopping cart providers. Plus, it will provide reporting based on your online transaction data, all while ensuring your customers’ data is secure.
Bank of America Merchant Services offers electronic check acceptance services with Clover Check Acceptance through the POS provider Clover. This is possible because Clover is also a subsidiary of Fiserv. Through the electronic check acceptance services, your small business will be able to convert paper checks into electronic transactions.
Even more, this capability will allow your customers to make purchases using their checking accounts and to set up recurring payments should they decide to. Customers will also be able to make secure check payments by mail, by Dropbox, or over the phone.
The Bank of America Merchant Services site doesn’t offer information about the fees attached to their check acceptance services. A representative said the fees range from $0.20 to $0.40 depending on the services the customer users. More information about the check acceptance is available on the Bank of America site but for exact pricing, customers have to contact them.
POS Services by Clover
The third type of merchant services Bank of America offers—point of sale services—also comes via Clover. When you go through Bank of America Merchant Services for your POS system, you’ll be getting Clover products. So let’s take a closer look at all four Clover POS devices.
The prices for these devices from Bank of America Merchant Services are listed on their website:
- Clover Station is a table-top, comprehensive point of sale device that starts at $1,349, not including payment processing fees.
- Clover Mini is a smaller, portable point of sale device that still offers a user-friendly interface and speedy payment processing. The Clover Mini LTE starts at $739 before any payment processing fees you’ll need to pay. The transaction fee for card-present transactions is 2.7% and for card-not-present transactions it’s 3.5% + $0.15.
- Clover Flex offers payment processing that’s even more portable and will start at $564, without payment processing fees. The transaction fees are the same as those with the mini, so 2.7% for card-present transactions and for card-not-present transactions it’s 3.5% + $0.15.
- Clover Go is a Bluetooth point of sale device that relies on a smartphone or tablet, but will also only cost your business $89 before payment processing fees. The transaction fees are again the same as those listed above.
To have a fully functional POS, you’ll also need to sign up for Clover’s POS software. Here you get two options:
- Register Lite allows you to accept all forms of payment, set employees permissions and shifts, track sales and reports, process payments offline, and access Clover App market. It costs $14 per month plus a 2.7% per transaction fee.
- Register comes with all Register Lite capabilities, plus inventory management, ability to access customer feedback, and add gratuity to checks. This plan costs $29.95 per month plus 2.3% per transaction.
Although Clover offers a good service, you’re not restricted to Clover POS if you want to access credit card processing. Bank of America Merchant Services also offers a more traditional POS device called the FD130 Terminal for processing credit card transactions for $634. The transaction fee for card-present transactions is 2.7% and for card-not-present transactions is 3.5% plus $0.15. They encourage you to call in to see if you can connect your own point of sale device with Bank of America Merchant Services.
Bank of America Merchant Services says that customers who have straightforward debit and credit processing needs can buy online, but customers who have more complex needs, like platform integrations for example, might need to discuss their options further with business consultants. You can find all of the POS options listed on their website. To see prices simply click the option you’re interested in buying.
Aside from these core offerings, Bank of America Merchant Services can also offer currency conversion, gift card services, a customer loyalty program, and next day deposits for those with a Bank of America business checking account.
Bank of America Merchant Services Support
Bank of America Merchant Services offers 24/7 support via phone, live chat, and email. There is also a fairly modest Support Center with FAQs and tutorials on various Bank of America Merchant Services products.
Bank of America Merchant Services: Pros
Given everything we have touched on, here are what we see as the benefits of going with Bank of America Merchant Services:
The main reason to go with Bank of America Merchant Services is if you are already a Bank of America customer and getting next-day deposits on your credit card transactions matters to you. Most other merchant services providers will take 24 to 48 hours to process your credit card transactions, so if you want them faster, Bank of America Merchant Services can service your needs.
Bank of America also offers Preferred Rewards for businesses that work with them. This is available to eligible business owners who bank with Bank of America and the perks include cash rewards for those who process transactions with Bank of America Merchant Services. The more you process through them, the more you earn in cash rewards.
Bank of America Merchant Services: Cons
Here’s why you might want to go with another provider over Bank of America Merchant Services.
Rebranded Clover Products
Most of the merchant services Bank of America Merchant Services offers don’t come directly from them, but from Clover. As such, you might want to consider bypassing Bank of America Merchant Services and working directly with Clover.
If you end up using Bank of America Merchant Services, odds are that you’ll end up with mostly Clover devices and services. So, unless you already bank directly with Bank of America and want to keep your business finances consolidated, consider streamlining your search and moving directly to Clover for your merchant services.
Top Alternatives to Bank of America Merchant Services
If you’re not convinced that Bank of America Merchant services—or Clover merchant services—are the right fit for your small business, then your next step will be to look into your alternatives.
Here’s the rundown on two of your best alternatives to Bank of America Merchant Services:
Square Point of Sale
If you don’t already use Square POS and merchant services for your small business, then odds are you’ve at least come across it as a consumer. Square offers a remarkably straightforward, affordable point of sale solutions to small businesses. And, as a result, you’ll see their characteristically minimalistic point of sale devices anywhere from farmers’ market stands to huge franchises.
- Square Register provides a full point of sale experience for $799 or $39 a month for 24 months. For every non-keyed transaction you run through it, you’ll pay 2.6% + $0.10. (Keyed transactions cost more on every Square point of sale device).
- Square Stand is a stand you can equip with an iPad to use as your POS terminal. You’ll just have to pay $199 for the stand and 2.6% + $0.10 for every non-keyed transaction you run through it. The Square Stand also comes with a built-in card reader.
- The Square Reader for Contactless and Chip transactions is a portable card reader that must be attached to a smart device to run transactions. It costs $49 plus 2.6% + $0.10 for every non-keyed transaction you make with it.
- The Square Magstripe Reader comes free when you sign up for Square if you’re an eligible merchant, if not, it will be $10. It attaches to a mobile device to process payments. It also charges a 2.6% + $0.10 fee for each non-keyed transaction you run with it. If you decide to buy more magstripe readers for your business, they’ll just cost $10 each.
Intuit QuickBooks POS Systems
Finally, if you—like many small business owners out there—are keeping track of your business’s finances with QuickBooks accounting software, then consider QuickBooks POS as your top alternative to Bank of America Merchant Services. QuickBooks POS systems will work hand in hand with your accounting software to make tracking each step of your business’s revenue remarkably easy.
QuickBooks POS software provides three packages to choose from:
- The Basic plan starts at a one-off price of $1,200 and allows you to perform basic point of sale capabilities like ring sales, track inventory, and perform reporting.
- The Pro plan starts at $1,700 and tacks on employee and payroll management, gift card programs, layaway capabilities, and advanced reporting.
- The Multi-Store, the most capable of all the versions, starts at $1,900 but will also allow you to manage multiple stores, manage and transfer inventory, and perform advanced inventory reporting.
Is Bank of America Merchant Services Right for You?
All in all, it’s hard to recommend Bank of America Merchant Services to business owners who aren’t already Bank of America customers. There are lots of other merchant services providers out there with more transparent pricing who won’t sell you rebranded products. However, if you are a Bank of America customer, we understand why you’d want the convenience of having your merchant services and banking in one place. We’ve given you all the information you need to make your decision. The only thing left is to do is decide what’s in the best interest of your business.