Midqualified, Nonqualified Rates - merchant accounts

[GlassEye]

I'm looking to switch merchant accounts, and I was promised by Bank of America that they only had one rate (low enough that it should be the qualified internet rate) for all transactions regardless of address verification, etc. claim to have no knowlege of any "mid-qualified" or "non-qualified rate" I have heard this from two B of A reps.

My current merchant account says they don't see how their competitor can do this but did lower their nonqualified rates, but it is still much higher than bank of america.

This sounds too good to be true. Am I getting baited?

[corbing]

B of A is apparently offering some very aggressive pricing right now. We are currently in the process of switching over to B of A with a three-tier rate.

We are getting 1.85% on card NOT present transactions. Mid-qualified transactions (US issued corporate, business, and military cards) are 2.85% and non-qualified (cards from banks outside US) are 3.15%. Plus $0.15 transaction on all. Since most of our cards are consumer cards, we can live with the high corporate and international card rate.

Wells Fargo was fairly surprised by the BofA rates and said that they simply could not compete (they even did a test call to BofA to confirm the rates we were offered).

[Automan Empire]

I dunno.... Knowing B of A, they will find ways to more than make up for these aggressively low quotes!
Consider the price spread not only for the interest rates, but for chargebacks, extra statements etc. Don't forget other banking services if they reel your entire suite of banking services in... returned check fees how competitive are those?
Don't let them get you in the door on these low fees until you see the big picture of EVERYTHING that can become a revenue stream from you to them!
-Automan

[AlexMiles]

Bank of America is not a company I would choose to do business with.

[corbing]

Out of curiosity, why not Alex?

Automan, we've VERY carefully read the contract and the fee schedule. They meet or beat everyone else on everything (except the international and corporate rates). Chargebacks, transaction fees, monthly fees, setup fees, AVS fees, auth fees, etc.

Can you share your experiences with the ways in which they "more than make up for these aggressively low quotes"?

[Beagle]

How long do they guarantee these low rates will last? I haven't had any experience with B of A, but I have seen companies that will give a very low rate to begin with and then raise it.

[AlexMiles]

Corbing,

>Out of curiosity, why not Alex?

It was a story I heard at the New Orleans conference. The person it happened to is a member of this forum, but I can't remember their name and I don't know if they've seen the thread.

I'd best not repeat the whole story, but suffice to say rather a lot of money (a whole year's wages) vanished into thin air and BoA sat there sucking their fingers.

Far as I know it has not been returned and no reasonable explanation has been forthcoming.

[Offer141]

Check out E-merchantsGroup
They have NO mid-qual fees and have been GREAT for me.

[edited by: lorax at 10:18 pm (utc) on Oct. 26, 2005]
[edit reason] removed URL [/edit]