Is Bank of America BSing me?

6 Replies

Bank of America says using its merchant services for lending money is prohibited. I then asked the representative, can i open a regular business account for my private consumer lending business where customers pay me directly through my checking and routing number with no integration to any special merchant services and she said that isnt allowed too?????

Which banks do private lenders use for their business?

I am sure this is ridiculous and that representative doesnt understand what i am tryna do?

Do private lenders use banks? If so which ones are the best? Do i have to partner with a bank to become a private money lender? Can't i just open a business account under my LLC and operate by myself?

Any input would be appreciated. Im in Massachusetts and California.

I'm not sure what you're asking. Merchant services usually refers to the banks B2B side where they provide point of sale systems for service/sales clients. 

It sounds like you're lending money out to people and you want them to pay you through merchant services. If so, then yeah that's not the way to do it. The transaction costs alone on your end would be very high to do this. 

if you have a business checking account, they can just pay you through bill pay. Not sure why she said that's not correct, sounds like miscommunication. 

Originally posted by @Alexander Felice :

I'm not sure what you're asking. Merchant services usually refers to the banks B2B side where they provide point of sale systems for service/sales clients. 

It sounds like you're lending money out to people and you want them to pay you through merchant services. If so, then yeah that's not the way to do it. The transaction costs alone on your end would be very high to do this. 

if you have a business checking account, they can just pay you through bill pay. Not sure why she said that's not correct, sounds like miscommunication.

Thanks for the reply, i am new to this and yes i think using bill pay through a business checking is the most hassle free way. Do you know if there would be a transaction fee for bill pay from my end if i use a regular business checking? As far as i know, BOA uses Zelle which doesnt charge transaction fees. Thanks!

You just have to try to open an account and look into it, I have a BofA business account and I don't recall any fees but I know charges sometimes depend on the amount in your account. I do know zelle sending doesn't cost.   Keep in mind you have to have your operating agreement etc to open a business account, it isn't like a personal checking account.  When you open it you can ask the bank staff any questions but the details aren't always right.

@Mahdi Termos  I can't help you with CA, but in MA I'd go talk with Rockland Trust.  I've been a customer there since about 1985.  They're a good regional bank and are far more reasonable than BofA.

For example, even my business checking accounts were free with no minimums.  If you as a non-customer goes in to cash a check drawn on Rockland Trust, they'll cash it for free.

My commission checks are drawn on BofA.  I'm not a customer, so they charge me $8.00 if I want to cash a check.  It's free if I open an account, but that's $15.00/month.

Talk to Rockland and tell them what you want to accomplish.  I'll bet they'll have a solution.

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