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Despite their All American moniker, Bank of America is not much different than the other banks weve researched in our Exposing the Trickery blog series. To launch our investigation, we filled out an online form and waited to be contacting by a merchant account representative.
After waiting a couple of weeks, we decided to finally place a call to our local bank last Monday only to find that it was closed for Columbus Day. On a long shot that a corporate merchant account office might be open, we called 800.228.5882 and finally reached someone!
Over the phone, we indicated that we would be selling items exclusively through a website, and within a day, we received just what we were looking for � a processing application and agreement with the nittygritty fees. Similar to Chase Bank, Bank of America offers tiered pricing without hiding it. Thankfully, they dont try to make it sound like they have oneflat rate like Costco.
Heres what we soon discovered: $99 set up fee for a gateway in order to process transactions through a website. $17 monthly fee no matter what. $94.75 annual maintenance fee.
Although these fees dont seem too outrageous on the surface, the worst of it comes in the rates they offered us: 2.12% Qualified Rate + $.25/transaction 3.89% NonQualified Rate + $.25/transaction which is most likely more than 50% of the time. 3.5% American Express + $.15/transaction.
If you plan to accept any type of rewards or corporate cards, plan to pay 3.89%. Do you realize how many people are charging with a credit card that has some type of reward tied to it? Airline miles, points, and cash back � all ways that companies are offering rewards these days.
3.89% for the majority of your transactions! Can you imagine giving away $3.89 for every $100 charged? OUCH! In reality, it would be better to accept an American Express card. When it comes to credit card processing companies, theres nothing that hurts small businesses more than tiered pricing. Sure, theyre not hiding it like other providers, but theyre still dipping deeply into your wallet and taking out more than their fair share.
Dont let them bank on your lack of understanding. Do your homework, and youll discover that there is a better option.
Danny Choi is the Founder and CEO of Best Merchant Rates a merchant account provider that "actually" cares about small businesses. Founded in 2005, Best Merchant Rates exposes the trickery of merchant accounts, educates on the truths of credit card processing, and empowers with transparent pricing. bank of america merchant account
