American Express® Business Checking Account Review

American Express® Business Checking Account Review

American Express® Business Checking Account Review

Kabbage, now American Express® Business Checking, hosts a wide range of tools and accounts for small business owners. American Express® Business Checking is their free business checking account. If you’re looking for free business checking for your small business, it’s worth a look.

What is American Express® Business Checking?

American Express® Business Checking is a digital small business checking account that helps business owners run their small business more smoothly. With no monthly maintenance fees and a wide range of banking services, it offers robust solutions for small businesses. 

With this business checking account, you can deposit funds using mobile check deposit on your phone or make cash deposits at 90,000 retail locations in the US. You can use the American Express® Business Checking debit card to make purchases accessing the money in your account, and monitor your funds. 

The other major difference between this account and a similar one from a bank is that American Express® Business Checking offers a higher interest rate on funds than most traditional banks while still requiring no minimum balance and without charging high fees.

How American Express® Business Checking Works

Currently American Express® Business Checking is available to a range of different types of businesses including sole proprietorships, LLCs, and partnerships. Documentation requirements vary by business type but may include EIN, social security number, business license, DBA, monthly credit card revenue, articles of organization, and personal identification.

Eligibility requirements aren’t spelled out in detail, but American Express® notes applicants may not be able to open an account due to the financial condition of the company, industry risk, fraud or other criteria.

There are no minimum deposits or minimum account balances requirements. Once you are signed up you can start linking accounts and getting money into your account through direct deposit or a bank transfer. From there you can integrate your checking account with other American Express® platforms if you choose 

You’ll get a American Express® Business Checking debit card you can use to pay for purchases or withdraw cash. 

You can only have one debit card, so if you have a company with employees who need to use a card while on the road, you may need to look at supplementing with a business credit card. In addition, you are limited to one one account holder and can’t add authorized users or beneficiaries. 

Pros and Cons of American Express® Business Checking

As with any checking account there are going to be certain benefits and drawbacks you have to consider. Since each small business is unique, their needs will also be unique. That being said, this list covers most of the pros and cons small business owners care about.

American Express® Business Checking Features

The top feature of American Express® Business Checking is the combination of an interest-bearing business checking account with low fees. But there are additional features to consider.

American Express® allows you to set up what it calls “Reserves.” You can create up to five sub-accounts into which you can deposit funds for savings toward various goals or expense categories, such as taxes. These can act similar to savings accounts though they are technically part of the checking account. 

One thing that is unique about this online account is the fact that you can deposit cash at retail locations such as CVS, Walmart, Walgreens and more. There is a cash deposit fee, however this can help bridge the gap between an online bank and one with bricks and mortar branches. 

Generally, though, this is an online checking account so you should be comfortable using the American Express® mobile app, online platform, mobile check deposit, and eStatements.

Rates and Fees

One of the best things about the American Express® Business Checking account is that your funds—up to $100,000— are eligible to earn interest at a competitive Annual Percentage Yield (see the current APY below). 

There are no tiers or add ons for American Express® Business Checking customers meaning the pricing stays at $0 for account holders. The only time you will encounter fees is for things like making cash deposits at a retail location, teller cash withdrawals, foreign transaction fees, out-of-network ATM operator fees, payment orders, and paper checks.

Who is American Express® Business Checking Best For?

American Express® Business Checking is best for small businesses that don’t frequently deal with cash or foreign transactions. Unfortunately, the fees attached to cash and foreign deposits makes it difficult to recommend the American Express® Business Checking account for those who will frequently be dealing with those types of transactions. But for startups and other small businesses that want their money to earn a decent APY and are comfortable with online and mobile banking, American Express® Business Checking can be a good option.

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