Kabbage Checking Review: Business Banking & Financial Services

What Is Kabbage Checking?

Best known as a lender, Kabbage only recently entered the world of business banking services. Will an in-depth Kabbage Checking review show that this business banking option is worth it? Kabbage’s high APY on deposits up to $100,000 grabs our attention. This could be a solid small business option that’s worth looking at.

For starters, Kabbage is an online-only financial technology company that offers the following services:

• Interest checking accounts for business
• Kabbage Insights analytics tool
• Bill payment
• Kabbage Funding payment button at checkout
• Mobile deposits
• Customized checks
• Direct cash deposits at major retailers (such as CVS, Walmart, Walgreens, and RiteAid)
• 19,000+ free ATMs nationwide
• Reserve accounts enable savings for specific goals
• Business lines of credit
• Payment Services (invoice processing, custom payment URLs, and card processing)

Note: Although the company temporarily suspended its Kabbage Funding program following Kabbage’s acquisition by American Express in 2020, the Kabbage line of credit is back. Kabbage Loans of between $1,000 and $250,000 are now available to new customers. In addition, Kabbage offers a range of financial services for small business owners.

Let’s continue this Kabbage Checking review with a look at rewards, fees, eligibility, and more.

Rewards & Perks

You could find a bank that offers greater rewards and perks than Kabbage. But those business bank account offers are not aimed at small businesses the way Kabbage is.

A small business that’s looking to open its first business bank account will appreciate these Kabbage perks:

• High APY On Kabbage Checking: A Kabbage business checking account offers an enticingly high APY of 1.1% on balances up to $100,000. That compares nicely to the current average of 0.03% APY for online checking and 0.6% APY for savings accounts. No interest is earned on aggregate Kabbage balances above $100K.
• Savings Options: Although you may be put off because Kabbage Checking doesn’t include a linked savings account, don’t worry too much about it. Your business checking account allows you to create up to five subaccounts called Reserves that you can use to set aside money for specific spending or savings plans. Because these subaccounts are part of your Kabbage account, funds left there will earn the same 1.1% interest up to a maximum of $100,000.

Pricing & Fees

Kabbage Checking is 100% free from a host of common fees, though users will encounter some less common ones.

Let’s start with the fees Kabbage accounts do not include:

• No setup fees
• No monthly account maintenance fees
• No in-network ATM fees
• No out-of-network ATM withdrawal or balance inquiry fees (though the ATM owner/operator may charge you, Kabbage will not)

Here are some less common fees you’ll find with Kabbage Checking services:

• Cash deposit fees vary by retailer, up to $4.95
• Teller cash withdrawal fee, $3/transaction
• A foreign transaction fee of 3% of the total transaction amount
• A payment order fee of $25 per transaction on outgoing domestic wire transfers
• Paper check fee of $20 for 100 6-inch checks or $125 for 250 8-inch checks and binder (note that Kabbage currently does not support checks ordered from third-party providers)

Check out the online fee schedule for a complete list of all Kabbage fees.

Eligibility Requirements

To qualify for a Kabbage business checking account, you must first become a current Kabbage customer. It’s free to apply and easy to do so online. No minimum deposit is required, and you even can open a Kabbage Checking account without an initial deposit if you want.

You won’t need to show that your business meets minimum requirements for revenue or years in business, so Kabbage is ideal for even the smallest and newest business. Because using business banking services can benefit your small operation, Kabbage can be a good option for most small businesses. Read our step-by-step guide to learn how to open a small business bank account.

Remember that you can use Kabbage’s Reserves subaccounts for targeted savings, setting aside money to meet your long-term goals, or pay for anticipated expenses, such as payroll or taxes.

As your small business grows, you might start looking for additional funding to support your plans, and Kabbage Funding may be able to help. At this time, the following minimum requirements apply to loans from Kabbage Funding:

• Time In Business: 12 months
• Business Revenue: Minimum monthly revenue is $3,000
• Personal Credit Score: 640

Review Of Kabbage Features

Kabbage Checking offers features that may make life easier for a small business owner looking to move from using personal accounts, a common practice when launching that most owners move beyond as their business grows. Useful features for small businesses include:

• Personalized Checks: While Kabbage currently does not support checks from third-party suppliers, you can order business checks directly from Kabbage. You’ll have your choice of two sizes: standard 6-inch checks and 8-inch checks with a binder.
• Mobile Deposit: Use the Kabbage mobile app to take a picture of a check and deposit it through the app. Funds from mobile check deposits typically are available by the fifth business day after deposit. Using this feature requires an initial ACH deposit and identity verification procedures. Kabbage recommends holding the physical check until the funds appear in your Kabbage account.
• Direct Deposit: Use your Kabbage Checking account and routing numbers to set up direct deposit. The routing number will indicate GoBank, a division of Green Dot Bank, the bank that provides Kabbage services.
• Cash Deposits At Retail Locations: You can deposit up to $5,000 in cash per day at nearly 90,000 retailers for a fee of up to $4.95 per deposit. Participating retailers include CVS, Walmart, Walgreens, and more.
• Account Transfers: Your Kabbage Checking account can receive domestic wire transfers from another bank account. Kabbage does not impose a fee for incoming domestic wire transfers.
• Nationwide ATM Network: Withdraw cash for free at any ATM in the Kabbage network. Use the ATM locator in the Kabbage mobile app to find locations near you. ATM withdrawals are limited to $2,000 cash in a day.
• Subaccounts: Use Kabbage Reserves to create subaccounts that allow you to save for specific goals or plans. This useful feature lets you separate income streams by product, organize funds based on needs, and set aside money for targeted investments. Money in Reserves can be spent once it’s moved back to your main Kabbage Checking account.
• Payment Services: Kabbage Payments, powered by parent company American Express, lets you accept debit and credit card payments from your customers for up to $10,000 per transaction. Kabbage Payments is linked directly to your bank account. You can create a custom URL that lets you accept payment online, then share it through texts, emails, or a web page. You can customize invoices with your logo, store customer and item information, and more. At this point, Kabbage is maintaining a waitlist for Kabbage Payments. Kabbage Payments currently lists an introductory rate of 2.25% per transaction for card-not-present transactions, with no monthly charges, fees, or contracts.
• Access To Credit: Once you’re a Kabbage customer, you are eligible to apply for Kabbage Funding, though your status as a customer does not guarantee access to loans.
• Bill Payment: Use the Kabbage dashboard to enter vendor information and pay your bills using your debit card through Kabbage’s bill pay feature.
• Payment Option For Your Customers: Add a Kabbage Funding payment button at checkout, and your business customers can apply for up to $150,000 in funding. That can remove barriers to the sale and keep customers moving through the checkout process. While your customers can spread payments out for up to six months, you’ll receive the full purchase amount right away.

Customer Service

Kabbage is a company recently acquired by a global brand and is growing rapidly, adding services to meet small business owners’ needs. When viewed in that light, some service shortcomings are perhaps understandable.

When I called Kabbage with questions about opening a Kabbage Checking account, I wasn’t bothered by the 12-minute wait on hold. (The hold music was pleasant, and I didn’t have to listen to repetitive product ads.) I made my way through the phone tree and spoke to an agent who couldn’t help me but could connect me to someone who could. After nearly ten more minutes on hold, he came back to say my assigned account manager was on another line but would call me immediately after wrapping up that call.

That was yesterday, and I’m still waiting for my phone to ring.

Of course, that’s just one experience, and yours may vary. And fortunately, other options are available for finding the answers you need. Here’s a rundown of Kabbage support options:

• Phone: Support is available Monday to Friday, 8 AM to 9 PM Eastern time.
• Email
• Help Center: Browse articles under Checking, Funding, and Payments headings.
• Videos: Check out the Kabbage channel on YouTube for how-to and informational videos and customer testimonials.
• Social Media: Kabbage is fairly active on social media, including Facebook, Twitter, LinkedIn, and Instagram.

Kabbage Reviews & Customer Complaints

Although Kabbage Checking is a relatively new service, the company has a long history that we can examine to glean some clues in this Kabbage review. Kabbage has dropped from its A+ rating this summer to a current C rating from the Better Business Bureau. The BBB notes a pattern of complaints about Kabbage PPP loan service as the main reason for the downgrade. The problems appear to relate specifically to PPP loan forgiveness. BBB says it contacted Kabbage in January 2021 about this and received a plan for correcting the situation; however, the complaints have continued.

Kabbage has a 3.5/5 rating on Trustpilot, with 6,739 reviews, and 3.5/5 on SiteJabber, with 309 reviews. In searching customer ratings, I found some comments specific to Kabbage Checking. Taken together, Kabbage reviews include some raves as well as some complaints.

What Users Like

• Easy application process
• Lines of credit
• Fast access to cash
• Excellent customer service
• Backed by American Express

What Users Dislike

• Difficult to reach customer support by phone
• The application process doesn’t always go smoothly
• Hard to deposit checks via mobile app

Is Kabbage Safe?

A thorough Kabbage review shows that this is an established company with a relatively solid reputation in a pool of newer online banking options. Although its reputation may have taken a hit among users dissatisfied with their Kabbage PPP loan experience, the company is backed by its highly reputable new parent company, American Express.

Keep in mind, Kabbage is not a bank. Kabbage Checking is backed by Green Dot Bank, member FDIC, and customers’ accounts are FDIC-insured to the maximum allowable limits. Kabbage data is held securely, with at least 128-bit encryption over TLS protocol.

Kabbage fully discloses all lending numbers, fees, application procedures, and terms of service on its website. If you go forward with Kabbage Funding, look for your loan details in a SMART Box, a standardized method of disclosing financial information that includes the total cost of capital, the APR, the average monthly payment, and the cents-on-the-dollar cost.

Final Verdict: Is Kabbage Worth It?

A small business owner searching for business banking services may find a lot to like about Kabbage. Compared to opening a business account with a traditional bank, Kabbage Checking is a great alternative for small business owners.

Kabbage’s interest-bearing checking account is an attractive feature. Although the current rate of 1.1% on balances up to $100,000 is temporary, it’s worth taking advantage of it if you’re looking for banking services. On top of access to a line of credit for anything you might want to finance, as a Kabbage customer, you’ll find it easy to access the cash already in your Kabbage Checking account. You can use your debit card with no fees inside the Kabbage ATM network, move money in and out of “Reserves”  savings subaccounts, and pay bills with your Kabbage account.

And you can deposit check via the mobile app and make cash deposits at major retailers, such as CVS and Walmart, that have hours extending far beyond traditional bank hours. So if you’re a small business owner seeking banking services that fit your needs and your budget, this Kabbage review concludes that this is one banking option worth a second look. We also prepared a list of the best Kabbage alternatives if you want to explore other comparable small business funding options.

Kabbage Review FAQs

The Merchant Maverick Seal of Approval 🏆

Kabbage	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Kabbage for yourself.

The Merchant Maverick Seal of Approval 🏆

Kabbage	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Kabbage for yourself.

Sources