The Bank of America Merchant Services Review for 2018

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 optimize and update systems that you already have, you’ll need to look into your merchant services options, one of which is Bank of America merchant services.

Of all the providers out there for merchant services, Bank of America is one of the more established. But can this big bank address the merchant services needs of a small but growing business?

That’s for you to decide—once you’ve gathered all of the details you need on Bank of America merchant services. Which is why we’ve condensed all of the necessary information—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.

All of the Merchant Services That Bank of America Offers

Bank of America merchant services feature three core services—ecommerce payment gateways, check acceptance, and point of sale devices.

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.

Let’s take a look at each of the individual merchant services Bank of America offers:

Bank of America Payment Gateway Services

If you’re looking for credit card processing services, then look into the Bank of America Payment Gateway option. This online Bank of America credit card processing service is best for ecommerce businesses or 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 that said, there’s little information available online about the Bank of America merchant services fees attached to their payment gateway services, so you’ll likely have to contact a BofA sales rep to get a quote on how much this Bank of America merchant service will cost your business.

Check Acceptance by Clover Via Bank of America

Through their partnership with the point of sale company Clover, Bank of America merchant services is able to offer small businesses electronic check acceptance services. Through the electronic check acceptance services that Bank of America offers, 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. That said, the same services, secured directly through their provider, Clover, will cost you 1.5% + $0.20 for each in-person check transaction you process.

POS Devices by Clover Via Bank of America

The third type of merchant services Bank of America offers—point of sale devices—primarily comes from Clover, as well. Bank of America merchant services offers all four Clover point of sale devices.

Though Bank of America’s website doesn’t clarify the cost of these point of sale devices if you buy them through their merchant services, here are the prices from Clover’s website:

• Clover Station is a table-top, comprehensive point of sale device that starts at $1,199, 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 starts at $599 before any payment processing fees you’ll need to pay.
• Clover Flex offers payment processing that’s even more portable and will start at $449, without payment processing fees.
• Clover Go is a Bluetooth point of sale device that relies on a smartphone or tablet, but will also only cost your business $59 before payment processing fees.

That said, you’re not restricted to Clover point of sale devices if you want to access Bank of America credit card processing. Bank of America merchant services also offers a more traditional point of sale device called the FD130 Terminal. Plus, they encourage you to call in to see if you can connect your own point of sale device with Bank of America merchant services.

Consider Bypassing Bank of America Merchant Services

Most of the merchant services Bank of America offers don’t come directly from them, but from Clover. As such, if you’re open to working with a company other than Bank of America, 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.

Clover’s website will give you much more useful information, and their straightforward setup and customer service could even outperform the tried-and-true services that Bank of America offers. As a tech-based company, Clover promises to offer remarkably intuitive user experiences that an incumbent institution like Bank of America might not be able to keep up with.

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 point of sale and merchant services for your small business, then odds are you’ve at least come across it as a consumer. Square offers 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 offers two versions of their software, Square POS and Square for Retail. And with Square’s point of sale hardware, you’ll have even more options:

• With the Square Register, you’ll access a full point of sale experience for $999 or $49 a month for 24 months. For every non-keyed transaction you run through it, you’ll pay 2.5% + $0.10. (Keyed transactions cost more on every Square point of sale device).
• You’ll need to equip the Square Stand with an iPad, but once you do, it will be a fully functioning, stand-still point of sale. You’ll just have to pay $169 for the stand and 2.75% of every non-keyed transaction you run through it.
• The Square Reader for Contactless and Chip transactions also require an additional smart device, but it’s much more portable than the Stand and only costs $49. Beyond the hardware price, you’ll also need to pay 2.75% of every non-keyed transaction you make with it.
• Finally, the Square Magstripe Reader requires a smart device to process payments, but your first one will come free when you sign up for Square. The only cost you’ll incur will be the 2.75% of 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 Intuit QuickBooks POS systems 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?

Now that you’ve made it through this guide on all the merchant services Bank of America offers, you’re in a great position to decide if it’s the right fit for your small business. Whether you’ve decided to move forward with Bank of America, to beeline straight for Clover merchant services, or to go for another merchant services provider altogether, your verdict for your own business is the right one—especially when you’ve got all the details to back it up.

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