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Bank of America Merchant Services Review

You’ve heard of Bank of America and may even do your personal banking with them. But should you use Bank of America merchant services for credit card processing at your business?
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First Data

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Bank of Amercia

Here’s what you need to know about BofA Merchant Services’ rates and fees, pricing models, reviews, CardFellow’s experience, and more. You can also let other businesses know about your experience by leaving your own Bank of America review.


Bank of America’s Merchant Services was founded in 2009 by Bank of America Corp. and First Data, one of the largest processors in the country. Merchant services are provided by Bank of America and its representative Banc of America Merchant Services, LLC. You may also see the company referred to as BofA or BofA merchant services. Less commonly, you may see BAMS. (Not to be confused with Bank Associates Merchant Services, which also uses that abbreviation.)

What does Bank of America Merchant Services offer?

BofA Merchant Services provides card processing, check processing, e-commerce, mobile, and payroll services.

Bank of America Merchant Services homepage

Card Processing

You can take all major credit credits with Bank of America Merchant Services, including Visa, MasterCard, Discover, American Express, Diners’ Club, and JCB. You can also take most debit cards, including PIN-based, and signature-based versions.

Check Processing

If your customers like to pay with checks, you can accept them. Bank of America offers TeleCheck so you can accept checks electronically with either Verification or Warranty. The Verification solution screens checks to minimize the risk of returned checks. The Warranty solution requires authorization, helping reduce fraud. Electronic checks are more secure and reduce trips to the bank, but if you prefer, you can still take paper checks instead of using the electronic check conversion. The Verification and Warranty solutions are both available with paper checks.


Taking payments online? Bank of America Merchant Services offers the Compass Platform, providing real-time authorization for fast transaction processing.

Bank of America Merchant Services also offers the Global Gateway e4?, a PCI compliant internet payment gateway that can easily integrate with your website. You can also accept phone or mail order payments.


If you want to take payments on the go, Bank of America offers Mobile Pay. You can use a Mobile Pay app or an internet Mobile Pay System to enter card information and process transactions. Both options feature advanced security to keep data safe and help protect you against fraud. You can also email receipts directly to your customers.

Payroll Services

If you need payroll services, Bank of America Merchant Services provides Money Network solutions, offering electronic pay disbursement for your employees. Electronic payment is compliant with all 50 states’ payroll requirements, with cards and checks that are widely accepted.

Equipment and software

If you need equipment, Bank of America has several options. For point of sale systems, Bank of America offers a retail solution and a restaurant solution, as well as the Clover POS all-in-one tablet-based system.

Retail Solution

The Retail Solution uses a computer with an Intel processor and is designed to replace a cash register. You can accept almost all payment types, manage inventory, track sales, and more. The Retail Solution features touchscreen technology, installation support, and no monthly maintenance fees.

Restaurant Solution

The Restaurant Solution combines a computer and restaurant-specific software to manage specials, sales, employee timekeeping, and more. The Restaurant Solution features an easy menu setup, installation support, and no monthly maintenance fees.

Clover Station

Bank of America Merchant Services offers the Clover Station as a tablet-based point of sale system. The system includes everything you need, including tablet, receipt printer, cash drawer, cables, and printer paper.

Additionally, Bank of America offers several countertop terminals. Features vary by terminal, but may include integrated check readers, built-in printers, LCD touch screens, encryption, USB ports, integrated PIN pads, and more.

Bank of America leases credit card machines, a practice that CardFellow strongly advises against. Read why we suggest that you don’t lease a credit card machine.

Is it secure?

Bank of America Merchant Services offers several tools to keep your transactions secure. First Data’s TransArmor uses encryption to protect data. Telecheck Check Guarantee helps protect against fraud and funds lost in check transactions. Fraud FlexDetect helps you detect suspicious activity, helpful for card-not-present payments.

Bank of America Credit Card Processing Rates

Bank of America publishes rates based on monthly volume, as follows:

$0.00 - $4,999.99 - 2.50% + $0.20
$5,000.00 - $9,999.99 - 2.30% + $0.20
$10,000.00 - $24,999.99 - 2.05% + $0.20
$25,000.00 and up - 1.89% + $0.20

Rates shown are for swiped transactions. An additional 1.1% rate will apply to non-swiped volume.

Bank of America Merchant Services’ website states that American Express card rates range from 2.30% - 3.50% + $0.00 - $0.15 and vary by merchant. An additional 0.40% rate will apply to certain cards.

Additional rates and fees may apply. Be aware that Bank of America Merchant Services uses several different types of pricing, and what you pay can vary wildly from published rates. See CardFellow’s experience with Bank of America at the bottom of this review for more information.

Is there a contract?

Yup. Bank of America Merchant Services contracts are 3 years and auto-renew every year if not cancelled. Early termination fees up to $500 may apply if you cancel before the end of the 3 year term. Be sure to read any contract carefully before signing up.

Bank of America Merchant Services Reviews

It can be hard to get an accurate idea of Bank of America Merchant Services’ reputation because reviews often don’t distinguish between consumer services for Bank of America and the Merchant Services division. Bank of America Merchant Services is not separately accredited with the Better Business Bureau and does not have a profile with the BBB.

There are currently 5 negative reports for Bank of America Merchant Services in Ripoff Report’s directory. Complaints allege hidden fees, high fees, and deceptive sales practices.

CardFellow’s Experience with Bank of America Merchant Services

Bank of America is one of the largest banking institutions in the world, so we have reviewed quite a few statements, applications, and quotes provided by businesses currently using Bank of America’s Merchant Services.

Bank of America follows the same path as many of the large banks. It offers some very competitive pricing, but it also offers some very poor pricing. The majority of what we see from Bank of America is best described as the latter.

It’s important to keep in mind that all processors set pricing and terms on a per-case basis. CardFellow’s experience with Bank of America Merchant Services is indicative of the company’s culture, not necessarily of what it’s capable of offering. In other words, from what we’ve seen, Bank of America is has the ability to offer competitive pricing, but they would rather not unless forced.

Opaque, Costly Pricing

Bank of America often uses a form of pricing that we ban in the CardFellow marketplace due to its opacity and expense. The pricing model used is a generally referred to as a form of bundled surcharging, which means that Bank of America doesn’t allow you to see the real cost of a transaction, or even get enough information to calculate how much of a surcharge Bank of America is charging on transactions. I’ll explain in more detail and provide examples below.

What Bundled Surcharging Means

The type of pricing that Bank of America often uses is referred to as bundled surcharging because of how interchange fees are paid behind the scenes and you’re billed using a base rate plus a series of surcharges based on interchange. The pricing model functions somewhat like tiered pricing, but we use the term bundled in place of tiered because of the sheer number of surcharge categories used and how the surcharge amount is completely concealed.

For example, the Bank of America Merchant Services statement below was provided to CardFellow by a business that later chose a processor through our marketplace and reduced costs by about 45%.

Bundled surcharging begins with a base rate, referred to as a qualified rate. The qualified rate is the lowest possible rate that you’ll pay. In the statement below, the qualified rate is highlighted and set at 0.0179, or 1.79%.

Bank of America qualified discount rate statement

In this statement, Bank of America lists the sales amount that was processed ($13,632.89) and indeed 1.79% of $13,632.89 is $244.03, which is what the business was charged in this line. The qualified rate often looks competitive. It’s supposed to, because it’s a decoy. The processor makes its real money from surcharges imposed in addition to the qualified rate. The image below is a snippet taken from the same statement as above. Only this snippet shows the various surcharges that Bank or America charged on top of the qualified rate.

Bank of America interchange surcharge statement

In this snippet, you’ll notice that Bank of America displays the name of the surcharge category (which is based on the actual interchange category), the number of transactions, and the surcharge fee, which is highlighted. However, unlike what is shown with the qualified rate charge, the sales amount the surcharge is based on is conveniently omitted.

There absolutely no possible way a business can calculate the amount of the surcharge without knowing the sales volume used as a driver for the fee. That is why this form of pricing is completely opaque, expensive, and not remotely in a business’s best interest.

Misleading Statements

Another tactic that we often see employed by Bank of America Merchant Services is the mislabeling of statement charges.

Specifically, Bank of America refers to its own fees as interchange or assessment charges. This is an issue because interchange and assessments are components of cost that are beyond a processor’s control. They’re the same for all processors. Implying that their own fees are the same as or part of interchange and assessments misleads business into thinking that there’s nothing that can be done to lower them, which is not true.

For example, the snippet below is taken from a Bank of America statement provided by another business that later used CardFellow’s service to find a more competitive processor, one that labeled interchange correctly on statements.

Bank of America Total Interchange statement

As you can see, Bank of America refers to the total of its own surcharges as “TOTAL INTERCHANGE.” This is completely inaccurate. Bank of America uses interchange to determine which transactions it will surcharge and by how much, but the relationship between its surcharges and interchange stop there. A more transparent, accurate label for this fee total would be “BANK OF AMERICA SURCHARGE TOTAL.”

Leases. Expensive, Predatory Leases 

Bank of America Merchant Services is well known to us for pushing equipment leases on unsuspecting businesses. We have several articles here at CardFellow that outline why you should never lease processing equipment. One of our recent articles even outlines how Northern Leasing is currently being sued in federal court for racketeering.

Nevertheless, Bank of America continues to sell equipment leases through its affiliate, First Data Global Leasing.

The snippet below was taken from a Bank of America lease application provided to us by a business that was very happy to have found CardFellow and at our recommendation avoided paying Bank of America $1,581 for a piece of equipment that they could purchase for $300.

Bank of America equipment lease statement

As you can see from the snippet, the term of the lease is 48 months at a cost of $32.94 a month. The term of the lease leaves the business paying five times what the machine is worth.

The bottom line is that while Bank of America Merchant Services may have the ability to offer competitive pricing, we rarely see that happen. With expensive and opaque pricing, misleading statements, and the continued use of expensive equipment leases, Bank of America Merchants services is often a costly choice for businesses.

Have you used Bank of America Merchant Services? Leave a review!


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Posted by Robin on Nov 06, 2020


After at least twenty years of banking with them, I will be closing all accounts I have with Bank of America. They have proven more than once that even if you’re a platinum preferred member, they do NOT care about you as a customer and they certainly DON’T have your back as their slogan says they do!

Posted by Marianella Lunn on Oct 14, 2020


Bank of America Merchant Services does the shuck and jive with merchants' money. Service from anyone with any information regarding adjustments is non-existent. A convoluted mess with our accounts has occurred when they parted ways with fiserv. It seems only legal action will get their attention.

Posted by William Lefear on Aug 08, 2019


Our company has been in existence for 4 years now. We recently received a payment of $12,500 from our customer using Bank of America Merchant services. This was our 2nd transaction through BOA merchant. The first transaction took place earlier that week. We have never had a charged back transaction from a client to this day. However, Bank of America held the payment and charged us the processing fee! It's been 12 weeks and they are still holding the funds.

Posted by Erin on May 09, 2019


Absolutely worst company ever! Horrible, horrible customer service! You better clear out your schedule for the entire day if you call them, because they will just put you on hold for hours and hours! And you will still not have a resolution to your problem! Already filed a complaint with BBB.. this place needs to be shut down. They do not care one bit about customer satisfaction! This place is terrible! Does not even deserve 1 single star!

Posted by morteza on Aug 17, 2018


Don't trust Bank of America for merchant services, they are ripping of all their customers. Don't sign any contract with them. They charged me over $2,500 to lease a machine and at the end of it I have to buy the machine. Don't do business with them, I will move all my accounts to a different bank.

Posted by Artak Harutyunyan on Dec 13, 2017


It's basically a trap. Once you sign the paper they have you on the hook.

Posted by Unhappy soon-to-be-EX customer on Nov 07, 2017


Suffice it to say, my interaction with every single BofA Merchant Services rep was unpleasant and a waste of countless hours of time!! I was placed on hold repeatedly, hung up on, given misinformation, etc. After 30 plus years as a customer, I am leaving BofA and Merchant Services as quickly as possible. I am quite frankly appalled and horrified that there are such poor standards of customer service.

Posted by Michelle Pickering on Nov 02, 2017


Criminals at BAMS will not tell you that the merchant services are NOT with Bank of America. The sales rep does not tell you there is a second contract for four years in addition to the 3 year BAMS contract. It is a purposely unethical method of leaving out important information that they profit very well from. You get a demand for equipment insurance from First Data which is when you initially find out you are involved contractually with another company. And if there is ever a problem with your surprise annual fee to both BAMS and First Data that you are never given notice of (my rep said there was a $50 annual fee in June which turned out to be a $100 fee in November, but there is a $50 fee from First Data too), you get a $50 collection fee immediately, the bank NSF fee plus another NSF from the 3rd party payment processing company you didn’t know you were using. A total of $110 in fees in case your account is low and you are not prepared for a surprise $100 deduction which is taken out with your processing fees, but with no breakdown given until your statement comes a week or two after the deduction. I could write an entire book of additional confusing fees by BAMS, My deposits were held one day for about $400 last December. When I called I was on hold to speak with collections for at least 30 minutes several times, to be hung up on by an unbelievably rude rep that refused to explain what the fees were for, and when I finally was given a breakdown of what I supposedly owed 3 calls later, there was still $140 that was never accounted for or returned to me. The BAMS representatives have a very hard time reaching their own collections department, so unless you have a minimum of two hours to spend on the phone (I’m NOT exaggerating), you will get nothing resolved. Please do not EVER sign anything that you cannot have a hard copy of on the spot. They have this pin pad they have you sign and they only show you what they want you to see. Don't do it!! My fault, after banking with B of A for 25 years I thought I knew what I was dealing with.

Posted by DongChoon Lee on Jul 27, 2017


I cancelled the Bank of America services in July 2015. My business had financial difficulties and I closed my business in Jan 2017. Bank of America was charging me $38.49 every month from Feb 2015 till July 2017 which is now $1,293.19. Sales rep didn't explain to me that I will be charged for the machine for 4 years even though I cancelled the service in July 2015, and returned the machine. They are telling me that I still owe them 17 more months leasing fees $654.33. They are saying i have to talk to First Data and First Data is saying I have to talk to BOA. BOA is ripping off merchants with this fraudulent process.

Posted by RR on Nov 17, 2016


Awful! No other way to describe it. Sales person sold me a service I didn’t need, by telling me I would get free business banking for the length of the agreement – this was sold to me via a telephone call. Afterwards I confirmed everything we discussed in an email. I was not charged banking fees for 6 months. After that – I was being charged fees – I spent numerous hours calling BOA to get fees waived. Got fees waived for another 6 months and then went through the process yet again. No one was able to track down the sales person who sold me the service (I had all her contact info including her cell number.) Then just last month I was charged a $120 annual fee for the merchant services (which I never used!) I called BOA yet again – bounced around a few people and pretty much begged them at this point to just cancel my service, refund the $120 and waive early termination fees. I got one person willing to waive $120 annual fee, but if they were going to terminate the agreement the termination fee was going to be $150. I asked for a supervisor and got a woman who pretended to care about me – who acknowledged that the person who sold me the service was misleading – and all she was willing to do was waive the termination fee – not the $120 annual fee. I asked her if she felt that was fair being I had never used the service – and she was just rude and said that’s all she could do. When I told her could do more, but is choosing not to – she became even more rude. When I told her that BOA will lose all my business (have bank accounts with them for 10 years) – she indicated she didn’t care since they were 2 separate entities. This was absolutely one of the worst customer service experiences I have ever had – that lasted about 18 months with their unwillingness to honor what they offered. I plan to close my BOA accounts and never use them again for anything.

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