A 2022 In-Depth Review of the Mercury Business Bank Account for Startups

A 2022 In-Depth Review of the Mercury Business Bank Account for Startups

A 2022 In-Depth Review of the Mercury Business Bank Account for Startups

  • Business bank accounts are important for small businesses because they can increase funding approval odds, among other key benefits.
  • The Mercury business bank account is a great fit for online businesses looking to customize their banking experience
  • It comes with unique features that aren’t available in many other banks, including integration with third-party payment and accounting software, API access, venture debt loans, and more.

Business bank accounts can give small businesses and startups several must-have benefits.

For example, business checking accounts can increase your chances of getting funding, while business savings accounts are a good way to set cash aside for unexpected events. Both make your business look more professional to lenders than running your operations from a personal bank account.

One way to take advantage of these benefits is the Mercury business bank account. Let’s dive into what it has to offer.

What is the Mercury Business Bank Account?

The Mercury business bank account is a banking service designed specifically for startups, small businesses, and angel investors. 

Mercury is not a bank and offers this service through Choice Financial Group and Evolve Bank & Trust, both financial institutions that are Members FDIC. Choice Financial Group and Evolve Bank & Trust are also both U.S. companies. According to their website, the Silicon Valley-based fintech company’s mission is to build a “banking stack for startups.” In other words, they’re a tech company looking to provide all the banking services small businesses need.

Details

The Mercury business bank account comes with the following features:

  • Checking and savings accounts provided by Choice Financial group and Evolve Bank & Trust, Members FDIC
  • Physical and digital debit cards that can be used at ATMs
  • Ability to send money via ACH, domestic and international wire transfers, and checks
  • Ability to apply for venture debt and receive funds if you’re a VC-funded business
  • Integration with payment providers like Shopify, Stripe, and Paypal
  • Integration with bookkeeping services like Quickbooks
  • Tiered access for employees and team members
  • API access that allows you to create customs solutions like the ability to pay vendors programmatically, build a custom burn tracker, and more
  • Cash management services that help you optimize your interest rate through money market funds and government securities
  • Must-have security features like two-factor authentication and activity logs
  • Ability to manage accounts via a mobile app

Pricing details

  • Accounts are free
  • No minimum account balances
  • No minimum deposit required
  • No monthly or overdraft fees
  • Sending and receiving ACH, checks, and international and domestic wire transfers are free
  • All integration features are free except for mass payments via API, treasury management, and a 1% charge on currency exchanges (rates can be discussed if processing over $200,000 per month)

Why is Mercury Bank a Good Business Checking Account for Start-Ups?

The Mercury business bank account is an attractive option for startups, entrepreneurs, and small business owners thanks to its perks and customizable features. 

The ability to create functions with the API means you can hire a programmer to make your life easier with custom payment solutions, cash management automation, and more. The option to keep cash in government securities and money market funds offers the possibility to earn a better interest rate than you would in a traditional bank. And tiered access for employees allows you to give your CFO, accountant, or third-party bookkeeper access to only the information they need. 

Its debit card feature also allows you to create virtual cards for use by key employees, further simplifying your management process. And the ability for VC-funded businesses to apply for venture debt from within the platform can be a significant time-saver if you’re looking for financing. 

All of this can be accessed for free, with no monthly fees and no minimum balances required. Both your checking and savings accounts are also FDIC insured, and there are currently no transfer limits on your savings account.

Speaking more generally, business checking accounts make your business look more professional to lenders, which can increase your approval odds for loans. They can also simplify your bookkeeping and tax calculations, which makes your accounting process a little less stressful. Business savings accounts come with important benefits too, offering an easy way to set aside cash for unexpected events.

If you’re looking for a way to claim some or all of these benefits, the Mercury account comes with both a checking and savings account. 

How Does Mercury Business Bank Account Compare to Alternatives?

The Mercury business bank account is one of the most versatile bank platforms on the market for all the reasons highlighted in the section above. There aren’t many bank accounts on the market that provide API access, nor are there many that make applying for venture debt this seamless.

Also, its ability to integrate with Quickbooks, Amazon Pay, and other essential third-party apps is unique compared to many other accounts. While Quickbooks allows you to import banking data from most banks, Mercury’s integration with e-commerce payments processors is a game-changer for online businesses.

One potential downside to Mercury is that it was founded in 2017, which means it may not have the experience of industry giants like Bank of America or Chase. While it has received mostly positive reviews at the time of writing, some unverified comments have also claimed that their customer service is occasionally unreliable. 

Another point to consider is that its yield through government securities and money market funds is currently advertised as “up to 0.23%.” While this may be higher than many traditional banks, it’s also not the highest option on the market. To compare a comprehensive list of the best accounts available, head here.

If you prefer speaking with your banker face to face, you may want to consider a traditional bank as Mercury is only available online. You can still withdraw cash at physical ATMs but they currently do not accept cash deposits. Finally, its venture debt feature is convenient but may not offer the best financing rates for your business. 

Who Uses Mercury Business Bank Accounts?

Mercury is best suited for startups and small businesses looking for online banking. Their comprehensive features and integrations are designed specifically with digital businesses in mind.

With that said, Mercury doesn’t serve sole proprietors and may not be the best fit if your business handles a lot of physical cash. If your business falls in one of these categories, you can explore the best alternatives here.

Does Mercury Bank Offer Credit Cards Or Business Loans?

Mercury does not have information about credit cards on their website at this time. However, they do offer both physical and virtual debit cards for ease of payment.

You can also get a business loan through Mercury via venture debt. According to their website, they offer “straightforward payback plans, minimal dilution, and competitive interest rates” to VC-funded companies. One of the benefits of applying through Mercury is that they will accept many of the same documents your company used during your VC round for their due diligence process.

How to Qualify For the Mercury Business Bank Account

According to their website, Mercury accepts most U.S.-based businesses and international U.S.-incorporated companies that “aren’t money services businesses or involved with adult entertainment, marijuana or internet gambling.” 

They don’t open accounts for sole proprietors or trusts. Their venture debt program is also only available to VC-funded businesses. In general, the Mercury business bank account is designed for tech companies, and they may not be right for businesses that frequently handle physical cash.

How to Apply For the Mercury Business Bank Account

To apply, you’ll need the following information:

  • A federal employer identification number (EIN) for your business 
  • Your business’ official formation documents
  • A picture of your government ID

One easy way to apply is to create a Nav account.

Nav syncs with your business data to help you determine if you’re likely to qualify for small business loans, personal and business credit cards, small business checking accounts, and more business services. We also help you understand your how to establish business credit. Nav instantly shows you your best options, which means you never have to waste time on the wrong application.

How Long Does It Take to Get a Mercury Business Bank Account?

According to their website, Mercury typically reviews applications and issues approvals within five to seven business days.

FAQ

Below are additional questions to consider when applying for the Mercury business bank account.

What Advantages Does the Mercury Business Bank Account Have Over Other Bank Accounts?

The Mercury business bank account comes with many customizable features typical business bank accounts don’t have. For example, it grants account holders API permissions so you can build custom solutions according to your payment and cash management needs. It also allows you to integrate with existing payment systems like Amazon Payments and Shopify.

Is the Mercury Business Bank Account Trustworthy?

Mercury is not a bank, but they offer banking services through two FDIC insured banks, Choice Financial Group and Evolve Bank & Trust. 

Will I Be Able to Withdraw Cash From ATMs?

Yes. The Mercury business bank account allows you to withdraw cash from physical ATM locations. However, note that they do not accept cash deposits at this time.

Will I Get An Accompanying Debit Card?

Yes. The Mercury business bank account comes with a physical debit card, plus the ability to create virtual debit cards for you and your employees.

Are There Any Fees Or Minimums?

The only fees Mercury charges are for mass payments via API, treasury management, and currency exchange (rates can be discussed if processing over $200,000 per month). Otherwise, there are no set-up fees or minimum balances.

What’s the Best Time to Get A Business Bank Account?

In general, the best time is now if you don’t already have one. Business bank accounts offer important features for startups and small businesses. Business checking accounts can improve the likelihood of getting a loan, while business savings accounts can help you set aside cash for unexpected events.

What Are All the Advantages of Getting A Business Bank Account For Startups and Small Businesses?

Business checking accounts provide the following benefits:

  • Simplifies accounting and tax preparation by separating your business and personal expenses. This can also help you better capitalize on tax deductions as it’s easier to track specific business expenses
  • Helps protect your legal business entity
  • Increases your business’s legitimacy in the eyes of lenders, which may increase your financing options. Some lenders don’t lend to businesses without a business bank account

Business savings accounts further simplify your accounting and tax preparation processes. They’re a good storage place for the cash you set aside for unexpected events.

The Mercury business bank account comes with both checking and savings accounts so you can take advantage of all these benefits with one account. 

Does the Mercury Business Bank Account Offer Both Checking and Savings Accounts?

Yes, opening a Mercury account gives you access to both checking and savings accounts.

What If the Mercury Business Bank Account Isn’t Right For My Business At the Moment?

Mercury may not be right for everyone, especially if you need the ability to make cash deposits. If that’s the case, you can always consider another business bank account option. One of the easiest ways to find the best bank account for you is to create a Nav account. Nav syncs with your business data to instantly find your best business bank accounts, small business loan options, business credit card options, and more business solutions. 

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