In this Mercury Bank review, you will find out how this online financial platform makes business banking cheap and easy.
On one hand, opening a business credit card is fairly easy for as long as you have a solid credit score and a legit side hustle. On the other hand, finding a business bank account can be quite a challenge.
Unfortunately, most brick-and-mortar banks out there make it a little more challenging. Needless to say, one cannot open a business bank account without having to step into a physical bank location.
According to the United States Small Business Administration, currently, there are 28.8 million small businesses in the country with 57.8 million employees working under these businesses.
The small business industry comprises 99.7% of all businesses in the country, while the number of employees they employ covers 48% of the whole U.S. employee population.
If you think about it, they may be considered “small,” but these businesses actually play a huge part in the economy may it be on the local or the national scene.
Now, whether you are a current small business owner or a soon-to-be one, one of the most important things you need to ensure is to have a systematic cash flow.
In a study conducted by the U.S. Bank, it was found that 82% of business failures were caused by poor cash management.
Cash flow refers to the virtual movement of money. According to Investopedia, it is “the net amount of cash and cash-equivalents being transferred into and out of a business. Cash received is inflows, and money spent are outflows.“
Having a system in place to help you manage your business’s cash flow will definitely help a lot in keeping the business operations smooth and easy.
Mercury bank is not your typical bank. It actually is designed to help small businesses manage their cash flow better. The bank makes it easy for any business or startup company with formation documents as well as an Employer Identification Number (EIN) to be able to open a business bank account.
This online banking platform offers a business account and a business savings account that are fee-free, which, honestly, is a breath of fresh air for people in the business industry.
Are you getting more curious about what this online bank has to offer?
Well, in the next couple of sections, we are going to go deeper to know key facts about Mercury Bank.
Specifically, in this Mercury Bank review, we are going to tackle the following:
- What is Mercury Bank?
- Who is Mercury Bank best for?
- What does Mercury Bank offer?
- How does Mercury Bank work?
- Are there fees involved?
- Is Mercury Bank safe?
- What to like about Mercury Bank?
- What not to like about Mercury Bank?
WHAT IS MERCURY BANK?
Mercury Bank was founded in April 2019 by Immad Akhund, Max Tagher, and Jason Zhang. It is based in San Francisco, California.
Mercury Bank was established to provide an online banking platform that specifically caters to small businesses. The bank offers both a business checking account and business savings account with no monthly fees.
Furthermore, Mercury Bank offers scalable digital tools. Needless to say, each account provides read-write application programming interface access for a customized banking experience.
Know more about Mercury Bank in this video below by Global From Asia:
In addition, Mercury Bank offers an upgraded version of its banking platform — the Mercury Tea Room. This product was designed for businesses that hold a balance of $250,000 or more in their accounts.
The account comes with added perks including free domestic and international wires, as well as exclusive partner discounts on business products and services. Also, customers under the Mercury Tea Room account get eligibility for the Mercury Treasury cash management account.
Customers with this account can make payments through wire transfers, debit cards, ACH transfers, as well as payroll processing platforms. Account-holders can also collect money from payment processors like PayPal and Stripe. More so, the accounts may be linked to online accounting software for easier processing.
As mentioned earlier, Mercury Bank aims to help small businesses or startup companies to manage their cash flow better by making it easier to open a business bank account for any company with documents and an Employer Identification Number (EIN).
Unfortunately, it is important to know what Mercury Bank is not available for sole proprietors. Also, it does not accept cash deposits like some of its competitors.
WHO IS MERCURY BANK BEST FOR?
Mercury Bank was designed to cater to small businesses.
However, to be more specific, the bank is ideal for small-business owners who want to take advantage of a free business banking platform with no transaction fees.
It is also best for those who prefer managing entirely their business finances online since Mercury does not have physical branch locations like what traditional banks have.
Since the bank does not have a cash deposit option, this makes it a good choice for business owners who do not need ATM or branch location to deposit money into their accounts.
It’s a great online banking platform for those who want to customize their banking by using the online tools and integration that Mercury Bank offers.
Meanwhile, technically speaking, Mercury Bank is ideal for small businesses within the U.S. The owners must be U.S. residents, and the business must service U.S. clients.
Additionally, money service businesses of companies that are involved with adult entertainment, marijuana, or internet gambling are not eligible to open an account.
Also, keep in mind that Mercury is not for businesses that are a sole proprietorship.
WHAT DOES MERCURY BANK OFFER?
Mercury Bank offers “full-stack bank accounts”.
To be clear, full-stack does not mean full-service. Mercury Bank, as mentioned earlier, does not have physical branch locations, and does not accept bank deposits.
Mercury Bank account holders can make fee-free cash withdrawals from any of Allpoint network ATM. However, it should be noted that as stated on the bank’s FAQ page, it is clearly stated that its products are designed to benefit startup companies, which means they do not fit all types of businesses that frequently need cash.
There are a couple of things that makes Mercury Bank stand out from other available business banking options out there.
Some of the most notable though is the following:
- Streamlined Application Process
- User Permissions
- Mercury Tea Room
- Minimal Fees
Now, let’s take a closer look at what each of these items is all about –
Efficient Application Process
Mercury Bank works entirely online. Unlike typical banks, it does not have any physical branch location.
While traditional banks may require you to fill out lots of forms and ask you to present different types of documents, Mercury Bank offers a very simple and easy process in applying for an account.
For small business owners who have their articles of incorporation as well as their EIN number from the IRS will be able to complete the whole application process online in just a few minutes.
Mercury Bank offers a simple process to help small companies get started. All it takes is to have a few government documents ready and you get to open an online business account immediately.
Mercury Bank provides its customers access to built-in digital tools that allow them to send and receive online payments, track transactions, as well as cash flow analytics and monitoring spending.
In addition, the bank offers the ability to create virtual credit cards, at the same time, manage your debit card through the app, which is available for iOS users. By the way, users can freeze the card, edit spending limits as well as add the account to a mobile wallet.
Mercury Bank also allows its users to integrate their accounts with third-party business tools like Xero, QuickBooks, PayPal, Shopify, and Stripe.
By having a Mercury Bank business account, founders get to share financial responsibility among their team members easily without turning over the keys to the business’s bank account.
Mercury Bank offers virtual cards and variable permissions for employees. More so, founders can also interact using their account via API. This ability makes it easier for finance teams to develop reporting or for developers to integrate apps and others.
By the way, Mercury Bank allows you to add as many team members as you want to your account.
Also, account holders have two options when it comes to user access.
The first is by adding users as admins and allowing them to receive a debit card, change permissions, as well as move money.
The second is adding users as bookkeepers, which means they can only access transaction history and statements, and are not allowed to do any transactions or changes.
Mercury Tea Room
Mercury Tea Room is available for businesses that can hold a balance of $250,000 or more.
The account comes with lots of perks including free domestic and international wires, access to exclusive partner perks such as two months free of OpenPhone or one year free of Rippling payroll, as well as free tea, which is inspired by the bank’s company culture of serving tea to one another.
Furthermore, Mercury Tea Room account holders are eligible for Mercury Treasury, which is an automated cash management account that allows account holders to put extra funds into the U.S. government securities and money market funds to earn interest.
Account-holders can create a customized portfolios with a mixture of bonds and services by simply using the information provided in a suitability questionnaire.
As of this writing, Mercury Tea Room accounts can earn up to 0.07% annually for idle funds. No worries about fees as this does not require any.
HOW DOES MERCURY BANK WORK?
In this part of our Mercury Bank review, we are going to talk about how to actually open an account.
As mentioned earlier, Mercury Bank does have eligibility requirements, which include:
- The business must be located in the United States with a federal employer identification number
- Must cater to US-based clients
- Not for sole proprietors or trusts
- Not for businesses in the money services, adult entertainment, marijuana, or internet gambling industries
- Business owners must be residents of the United States
As mentioned earlier, the account opening process is made simple and easy, provided you have the required documentation, which includes:
- A government-issued ID for you and any co-founders
- Owners with 25% or more ownership or officers who have control over your finances
- Business formation document (which varies based on your entity type)
- Employer Identification Number (EIN) verification from the IRS
Meanwhile, for verification purposes, you will need the following information and documents:
- EIN verification letter
- Company formation documents
- Company contract and contact details
- Social Security Number (Not needed for foreigners)
- Government ID
- Company profile (The form is available on the Mercury Bank website.)
To apply, all you have to do is visit the Mercury Bank website. You must, first and foremost, create an online account and then complete and submit your application.
Again, everything has to be done online.
Once your account application is approved, you can now fund your account, as well as send payments, and manage transactions and spending.
You may download the Mercury Bank mobile app to your iOS device, and then start adding users to your account. Also, you can now start integrating third-party business tools.
In addition, you will also receive a business debit card within eight to 10 days from the day your account was approved. The bank also allows you to generate virtual cards from your online account, in case you need to use them before the actual physical card arrives.
Deposit and Withdrawals
To do mobile check deposits in your account, you will need to show a history of funding as well as transactions within your account.
Mercury Bank enables this feature on a case-to-case basis. However, once enabled, users can use the mobile app to deposit checks via the Add Funds flow.
Meanwhile, to withdraw funds, account holders may do so through any of the over 55,000 Allpoint network ATMs for free.
ARE THERE FEES INVOLVED?
Unlike typical banks, Mercury does not charge monthly maintenance fees as well as overdraft fees.
The only fees charged by the bank are wire transfer fees — $5 for domestic, while $20 for international transfers. The charges can, however, be waived if you are a “Tea Room” client.
IS MERCURY BANK SAFE?
The security of your personal and business information and your account is very important. Thus, Mercury uses bank-level security features to avoid fraud, identity theft, or any other similar unfortunate circumstances.
Although technically not a bank, Mercury offers banking services through Evolve Bank & Trust, its partner bank.
Because of the partnership, all accounts are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) in the event of a bank failure.
WHAT TO LIKE ABOUT MERCURY BANK?
This Mercury Bank review will not be complete without giving you the pros and cons.
So, in this section, we are going to tackle the things to like about Mercury Bank first, which include the following:
- No Minimum Deposit – Unlike traditional banks, Mercury Bank does not require any minimum opening deposit.
- No Monthly Maintenance and Overdraft Fees – Another perk of opening a Mercury business bank account is that you get away from paying off monthly maintenance fees as well as overdraft fees, which are very common in traditional banking institutions.
- Checking and Savings Account in One – Mercury Bank provides checking and savings account in one platform, which definitely makes everything so much easier for small business entities.
- Large ATM Access – Mercury Bank account holders get access to over 55,000 fee-free Allpoint network ATMs across the country.
- API Access – With the API access, account holders get to automate and customize their banking experience.
- Mercury Tea Room – For business accounts with balances of $250,000 or more, they get to access additional amazing perks.
- Employee Permission Levels – Mercury Banks provides two employee permission levels, which we believe is very unique to it.
- Multiple Third-Party Platform Integrations – Mercury allows users to integrate different types of platforms like QuickBooks, Stripe, PayPal, etc.
WHAT NOT TO LIKE ABOUT MERCURY BANK?
To complete the whole review, here are some of the things that Mercury lacks or may need to improve on:
Not Available to Sole Proprietors – Unfortunately, small businesses owned by a sole proprietor are not eligible to open a Mercury Bank account. Only businesses with multiple founders can avail of the bank’s products and services.
No Cash Deposit Option – At the moment, Mercury does not have a cash deposit option. You may fund your account via mobile check deposit instead.
Low-Interest Rate – Compared to other banking institutions, Mercury Bank offers a low interest rate of only 0.07% annually (as of the moment).
Mobile App is Available for iOS Users Only – Unfortunately, Mercury Bank mobile application is only available for iOS devices. We thought the bank may already working things to make it available for Android users soon as well.
FINAL THOUGHTS ON MERCURY BANK
Mercury Bank is an online banking platform specifically designed for small businesses or startup companies. It helps make business banking easier by providing tools, services, and amazing perks.
Overall, Mercury Bank’s business bank accounts are low-cost (because the bank does not charge monthly maintenance and overdraft fees), easy to open (everything is done entirely online in just a few minutes), and integrates very well with other business tools like Quickbooks, PayPayl, etc.
With all these, we wouldn’t be surprised if Mercury Bank becomes one of the most sought-after business banks out there. Do you agree?