Bank of America and First Data, which recently closed its $22 billion acquisition by Fiserv, announced that the companies would end their joint venture and will pursue separate merchant services strategies. BofA and First Data ending their relationship signals to Clover users specifically to look elsewhere for services.
“Payments are at the core of our business, and this announcement is another step forward in our global strategy to provide companies of all sizes an integrated payment offering,” Mark Monaco, head of enterprise payments at Bank of America, said in the announcement. “We look forward to investing in our merchant solution and delivering the capabilities our clients need to thrive in an ever-changing payments environment.”
As part of the joint venture, the companies provided payment processing services and First Data’s Clover POS terminals to merchants of all sizes. This will no longer be the case. Although the impact of this ending partnership will not be felt immediately, this is definitely something for business owners to monitor, especially if they are Clover users and/or utilize First Data merchant services products from Bank of America now.
BofA and First Data ending their relationship is just one of many partnership changes happening this year.
We’re not sad. Banks and POS in our opinion are not a match made in heaven. Clover is a good product, but bankers don’t know enough about the POS industry in most cases to sell and support it properly. Point-of-sale in general is a specialized, complicated technology. When real POS professionals trained and experienced in that industry introduce these products and services to business owners those folks are served in a much more appropriate way. Their businesses benefit tremendously.
Can banks like Bank of America, Wells Fargo, or many others sell and support Clover POS properly? Maybe. Our advice? Buy point-of-sale of any kind from folks that specialize in that technology. Business owners will also benefit from setting up merchant services and credit card processing from a specialized payments vendor. Get loans and checking accounts from banks.
Check out Reforming Retail’s experience with an attempt to buy Clover POS from Bank of America here.