Change in Bank of America Credit Card Program

At the last Bank of America credit card teleconference, Bruce Pearson announced that the Bank had imposed the requirement that CRAFT members sign a 3 year contract with the bank to join the program. The contract is 40 pages long and contains a clause for a $500 early termination fee. Needless to say we were all a bit shocked at the change.

GOOD NEWS! After weeks of talking with numerous bank Vice-Presidents, we've been able to negotiate a less onerous contract. The bank's concern was that since rates to us are so low, it takes them over a year to recoup set up costs. They are used to (and want to avoid) stores jumping around to other processing entities for lower rates. We pointed out that they should check CRAFT's track record and they would see that CRAFT members tend to stay with the BofA program because no one else has lower rates. Long story short...they are still requiring a contract but now it is for one year. The 40 pages are still there and are basically boiler plate pointing out responsibilities on both sides. The only big issue in it is still the termination fee which we could not get rescinded. They do say that they will look at each case and if there is a reason such as going our of business they would consider waiving the termination fee. This is a bit nebulous, yes, but BofA has been terrific with us in the past and listens. 

Bottom line? This is still the best deal. A bit more hassle perhaps but has the potential of saving thousands of dollars for CRAFT members.

Next big news - Bruce has changed positions within BofA.  Our new representative is Edie Ransom.  You can find the information to reach her on the CRAFT web site through this link.