Bank Of America Merchant Services Review (2024)

See Top Picks

Credit Card Processing

• Merchant Accounts: BAMS merchant accounts are no longer underwritten by Fiserv/First Data. However, it’s unclear whether Bank of America is processing transactions directly or through an unidentified backend processor. Note that you will receive a full-service merchant account (with a unique merchant ID number for your business) whether you opt for customized pricing or the advertised flat-rate pricing plan. Also, note that BAMS does not appear to accept high-risk merchants. Most importantly, you must have a Bank of America business checking account to obtain a merchant account through BAMS.
• Security Features: BAMS uses tokenization and encryption to protect your account, and it’s available for free with all accounts. There’s also a Fraud Management tool included with the Bank of America Payment Gateway.
• Preferred Rewards Program: A unique feature offered by Bank of America Merchant Services is its Preferred Rewards program, which offers discounts on your credit card processing rates. Three tiers are available: Gold (which offers a 0.05% discount on processing rates), Platinum (which offers a 0.07% discount), and Platinum Honors Gold (which offers a 0.10% discount). Numerous fees and restrictions apply to this program, so we recommend reviewing the Terms and Conditions before signing up.
• Same-Day/Next-Day Funding: All BAMS users will have next-day funding as a feature of their accounts at no additional cost. To qualify for same-day funding, you’ll have to apply for the program and pass a credit check. Fees for this program are not disclosed, but we highly doubt that it’s free. Remember that you’ll need a Bank of America business checking account to be approved for a merchant account.

Processing Hardware & Software Subscriptions

• Mobile Payments: Reader if you need to take payments in the field or prefer a smartphone or tablet instead of a dedicated credit card terminal, BAMS offers the D135 Mobile Card Reader. This BofA-branded reader (manufactured by PAX) supports magstripe, EMV, and NFC-based payment methods (Apple Pay, Google Pay, and Samsung Pay). It connects to your iOS or Android device via Bluetooth.
• Countertop Terminals: BAMS no longer offers Clover terminals, although you can still receive technical support for these products through Fiserv. Instead, you’ll find BofA-branded countertop and wireless terminals. The A80 Countertop Terminal is sold as a package with the S30 PIN Pad and supports magstripe, EMV, and NFC payment methods. It can operate via an AC adapter or on battery alone. For long-term wireless use, you can also choose the Portable A920 terminal, which features a 5″ color touchscreen and a high-capacity battery. Note that this device does not come with a PIN pad and requires a monthly cellular data subscription.
• Point-Of-Sale (POS) Systems: If your business needs a fully-featured POS system, BAMS offers the Smart Terminal E700 and Smart Register E800 models (both manufactured by PAX). Both models offer large color touchscreens, customer-facing displays, and built-in printers.
• Point-Of-Sale Software Subscriptions: Most of these devices require a monthly subscription to what BAMS calls a “software solution.” These include the following options:
  • Basic Payment Solution: Available for the Portable A80 and Countertop A920 terminals, this plan includes support for EBT and PIN debit transactions, a virtual terminal, and basic online reporting functions
  • Mobile Point-Of-Sale Solution: Available for the Mobile Card Reader D135, this plan includes all features of the Basic Payment Solution (except EBT & PIN debit support), and adds a comprehensive cloud-based reporting function that includes tax data.
  • Essentials Solution: Available for the Portable A920 terminal and required for the Smart Terminal E700 and Smart Register E800 POS systems, this plan includes all features of the Mobile Point of Sale Solution. It also adds a host of extra features, including support for loyalty programs, a customer profile management feature, integration with an Online Ordering system for restaurants, and much more.

Software & eCommerce Products

• Payment Gateway: BAMS now offers the proprietary Bank of America Payment Gateway to all eCommerce users. Other payment gateways may also be supported. Integration options include a hosted payment page, checkout API, microform integration, or BofA’s Card Not Present Integration Toolkit. The Bank of America Payment Gateway uses tokenization and encryption to protect your customer’s payment data and meets Level IV PCI compliance requirements.
• Virtual Terminal: Mail-order and telephone-order businesses need a way to manually key in credit/debit card transactions, and a virtual terminal is the most affordable way to do so. BAMS includes a virtual terminal with its payment gateway, which is available for free to all merchants.

Flat-Rate Pricing Option

Every traditional merchant services provider in the industry is trying to compete with Square in attracting small business clients, and BAMS is no exception. The company offers the following flat-rate pricing rates on its website:

• 2.65% + $0.10 per swiped, dipped, or tapped transaction (card-present)
• 2.99% + $0.30 per eCommerce transaction
• 3.50% + $0.15per keyed-in/virtual terminal transaction

These rates are generally a little lower than what BAMS was charging two years ago with Fiserv, and are roughly close to Square’s current rates. There don’t appear to be any other recurring fees (including a monthly account fee), but we’d still take the company’s “no hidden fees” claim with a grain of salt.

Quote-Based Custom Pricing Option

BAMS also offers a customized pricing option that will take into account your monthly processing volume, prior processing history, and any other factors that it deems relevant. The company doesn’t disclose any specific rates, but most likely offers either tiered or interchange-plus pricing plans. You’re likely to be initially offered a more expensive tiered plan, which you should reject. Insist on an interchange-plus plan, which will save you a significant amount of money over time.

BAMS states on its website that merchants pursuing a custom pricing option will be offered a written rate quote, complete with full disclosure of all applicable processing rates and account fees.

We strongly encourage you to review your quote very carefully and negotiate for a better deal rather than blindly accepting the company’s initial offer.

Hardware Pricing

BAMS now offers a full line of Bank of America-branded mobile card readers, terminals, POS systems, and accessories. Pricing is as follows:

• Mobile Card Reader D135 – $99/unit; app is free
• Countertop A80 Terminal – $359/unit
• PIN Pad SP30 – $299/unit
• Portable A920 Wireless terminal – $529/unit (requires monthly cellular data plan, cost not disclosed)
• Smart Terminal E700 POS System – $1129/unit
• Smart Register E800 POS System – $1,439/unit

Note that pricing for the three point-of-sale software subscriptions is not disclosed, but will be included in your pricing quote.

The following accessories are also available:

• Cash Drawer – $149
• Handheld Barcode Scanner – $279
• Countertop Barcode Scanner – $349
• Thermal Printer – $289
• Weight Scale – $999
• Portable A920 Charging Base – $59
• Mobile Card Reader D135 Charging Base – $54.99

Negative Reviews & Complaints

Bank of America has been accredited by the BBB since 1949 and has anA- rating, despite having received thousands of complaints in just the last year alone. Unfortunately, BAMS itself doesn’t have a separate BBB profile, with complaints about merchant services being lumped in with those filed by individual consumers.

With no way to search or filter these complaints to isolate those filed by merchants, we’re unable to accurately gauge the overall complaint volume for Bank of America Merchant Services.

Nonetheless, other feedback from merchants is available on other review sites. While most of these complaints were filed before the company’s split with Fiserv, they reveal the following issues:

• Withholding Funds/Termination Of Accounts: This can happen for several reasons. Excessive chargebacks or suspicious charges can easily raise a red flag that will either get you suspended or shut down. You’re going to want to learn how to avoid account holds and minimize chargebacks if you want to be able to accept credit and debit cards. Unfortunately, this problem can occur with any merchant services provider, so it’s still a concern even though BAMS is no longer using First Data as its backend processor.
• High Fees & Hidden Charges: These complaints date back to before the 2020 split with Fiserv, and shouldn’t be as significant a problem today. BAMS no longer charges monthly or annual fees for its flat-rate pricing option, although you will still have to pay for incidentals, such as chargebacks. Merchants choosing a custom pricing plan will be presented with a quote that discloses all relevant fees that are included with your account, and we strongly encourage you to review it carefully to avoid any unpleasant surprises later.
• Expensive Terminal Lease Contracts: When BAMS was partnered with First Data, many merchants complained about not being aware that they were signing a non-cancelable terminal lease. You should no longer encounter this issue now that BAMS sells its equipment outright and fully discloses its pricing on its website.
• Reputation For Poor Customer Service: During its partnership with First Data, BAMS received a high volume of complaints alleging poor or ineffective customer support. Unfortunately, this is a common problem in the processing industry, with larger institutions usually having the worst reputation in this area. While BAMS now offers 24/7 telephone and email support, as well as a useful Merchant Help Center, be aware that you still might encounter problems with customer support.

Positive Reviews & Testimonials

The revised BAMS website doesn’t offer any testimonials from merchants at this time. While these company-controlled testimonials are always going to be one-sided, it’s at least encouraging when an actual user volunteers to participate in making one.

We were also unable to locate any positive testimonials for the company on other sites. Unfortunately, there appears to be very little feedback – positive or negative – about BAMS since its 2020 split from Fiserv.

Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.

View Frank Kehl's professional experience on LinkedIn.

• How To Choose An ACH Processing Account For Your Small Business - November 30, 2023
• Treati.io Review - July 14, 2023
• Corepay Review - May 25, 2023
• How To Offset Or Lower Your Credit Card Processing Fees - March 14, 2023
• Clearly Payments Review - February 6, 2023