Founded in 2009 by Bank of America Corp. and First Data, Bank of America Merchant Services is one of the largest payment processors in the country. Although their recent separation from First Data has some business owners shaken, the merchant services provider maintains a strong level of support from its loyal merchants.
Bank of America Merchant Services provides card processing (including electronic checks), check processing, e-Commerce, mobile, and payroll services. When you need a credit card processor, it can make sense to first see what your bank offers for these services. After all, wouldn’t it be more convenient to process payments at the financial institution where you already have a bank account? Unfortunately, a lot of banks charge a premium for this level of convenience.
We’ll compare the difference between Bank of America Merchant Services and Stax so you can make the best decision for your business. Be sure to read this before signing up for a merchant account with Bank of America.
Bank of America Merchant Services Rates
With its once secure and helpful products and services for merchants, Bank of America Merchant Services was previously a viable payment processing option for some businesses.
In addition to enabling you to accept all payment types and support all major credit card brands (Visa, Mastercard, American Express), BOFA also offers payment hardware and software—including a tablet POS system, mobile payment processing, and small business eCommerce solutions. Before you sign up, be sure to review the following ways that Bank of America falls short for businesses.
In general, many businesses using Bank of America will find:
- Higher equipment fees (can be over $1,000)
- Expensive credit card processing rates
- Less than stellar customer support
Bank of America Merchant Services Fees
With Bank of America Merchant Services, you have to use Clover devices. Just like with Stax, you’ll own the equipment outright instead of paying monthly leasing fees. However, with Clover, you may get locked into an annual contract for a T-Mobile or AT&T internet connection.
Plus, Clover devices are some of the most expensive in the market, with an upfront cost of $500-600. If you want to be able to accept contactless NFC payments like Apple Pay, you’ll have to buy an add-on which is another $300. In all, you could pay over $1,000 for the Clover device and all its add-ons.
To compare, Stax offers a number of in-person payment terminals at a variety of price points starting at just $175.
It’s also worth noting that as a First Data reseller that promotes Clover products, your point of sale (POS) software will come with monthly costs. Based on your plan, you will be subject to the following Clover subscription rates:
- Payments Plus: $4.95 per month
- Register Lite: $9.95 per month
- Register: $39.95 per month
- Counter Service Restaurant: $39.95 per month
- Table Service Restaurant: $69.95 per month
The above rates are charged per device. So, if you’re on the Clover POS Register plan and have two devices, you’ll be charged $79.90 per month (i.e., $39.95 x 2).
Needless to say, these fees can add up. So if you want to go with a less expensive point of sale software provider, you’ll need to shop around instead of purchasing it from BOFA. If you decide to go this route, you can integrate your POS system with Bank of America Merchant Services and use a traditional payment terminal such as FD130.
How do Stax Payment Processing Rates Compare
BOFA Merchant Services lack transparency. Finding their rates and interchange fees on their website is impossible. Stax membership pricing provides award-winning value and service. In many cases, Stax offers more value at a lower cost than most merchant services providers including Bank of America. This is due to our 0% markup and high-quality Stax integrated payments platform.
In contrast, Stax’ membership provides award-winning value and service. In many cases, Stax’ membership-based pricing offers more value at a lower cost than most merchant services providers including Bank of America. This is due to our 0% markup and high-quality Stax integrated payments platform.
With Stax payment solutions, you can manage your financials, payments, customer management, inventory, and more — all under one roof.
Here’s a breakdown of Stax’ processing fees:
For Businesses Processing Up to $500,000 Annually: $99/month + direct interchange
- $0.08 per swiped, dipped, or tapped transaction
- $0.15 per online or keyed-in transaction
For Businesses Processing Over $500,000 Annually: $199/month + direct interchange
- Swiped: $0.08 per transaction
- Keyed: $0.15 per transaction
Stax’ Processing Fees
Stax is a subscription-based merchant services provider. We offer complete transparency when it comes to your bill. There are no annual fees, no contract fees, no statement fees, and 0% markups – not to mention stellar in-house customer support. If you want to save money and watch your business grow, Stax is the right merchant processor for you. So, how much could each pricing model’s credit card processing costs affect you? We’ve broken down the dollars and cents cost for a subscription-based model (Stax) and what a bank (Bank of America) will charge you on a monthly basis.
Subscription vs. Bank: Scenario #1
CP Cost of Processing $18,000 per Month
4 sales per day x $150 per sale x 30 days = $18,000/month
| Stax* | Square | Bank of America* |
|---|---|---|
| $306.60 | $480.00 | $486.00 |
Subscription vs. Bank: Scenario #2
CNP Cost of Processing $45,000 per Month
3 sales per day x $500 per sale x 30 days = $45,000/month
| Stax* | Square | Bank of America* |
|---|---|---|
| $981 | $1,588.50 | $1588.50 |
Additional Fees
Bank of America has been criticized for its lack of transparency when it comes to fees. In addition to an opaque payment processing fee structure, there have also been reports of:
- Hidden fees
- Early termination fees
- Payment gateway fees
Stax doesn’t charge any of these added costs. Our monthly fee covers all your payment processing costs, so your statement is always transparent and easy to understand.
Bank of America Payment Processing Integrations
As for integrations, Bank of America allows you to connect its platform to your eCommerce and accounting platforms.
For eCommerce, Bank of America has a payment gateway service powered by Authorize.net, which allows you to integrate it with your current payment gateway. If you’re new to eCommerce and don’t have an online store yet, you can integrate Bank of America Merchant Services with BigCommerce to establish your website.
Bank of America Merchant Services also integrates with QuickBooks online. According to its website, the integration enables you to automatically sync your Bank of America checking accounts and makes it easy to manage your customers, orders, vendors, and inventory from all your devices.
Stax Integrations
Stax integrates with various solutions that serve your business needs, including:
- QuickBooks
- Mailchimp
- NetSuite
- Salesforce
- Infusionsoft
You can also use Zapier to integrate Stax with even more solutions, including HubSpot, Slack, Pipedrive, and Google’s Office suite.
Bank of America Customer Service
Reviews state that Bank of America customers are unhappy with the level of support they receive for their products. On the other hand, Stax offers in-house customer service – not a third-party call center. When you call during business hours, you speak with someone who knows our product intimately and is always happy to help. From training to troubleshooting, we are the company to choose if you appreciate a human touch in your customer service needs.
When you look up Bank of America Merchant Services reviews, you’ll find complaints about its lack of transparency, poor customer support, and hidden fees.
Merchant Maverick gives Bank of America Merchant Services 2.4 out of 5 stars, while TrustPilot and CardFellow give it 2.4 stars and 1 star respectively.
Compare that to Stax, which fares much better when it comes to online reviews. Merchant Maverick gives us a 4 out 5 star rating. Meanwhile, G2 and TrustPilot give Stax 4.9 and 4.2 stars respectively.
How Stax Compares to Bank of America
If you conduct your personal banking with Bank of America, you may be tempted to add on their processing. However, you’ll want to be aware of the full costs and fine print before you sign on. In addition, with Stax’ Fast Access Funding add-on, you can still get paid just as quickly while saving on processing.
Before you choose a payment processor, see our full comparison of merchant service providers in the market, including banks, PayPal, and more. Or fill out the form below to see how easy payment processing can be.
