Mercury Bank Review

Pros

• No fees
• No minimum balances
• High APY available
• Access to startup capital
• Corporate card for small businesses

Cons

• Online only
• Large balance is required for high APY
• No cash deposits
• Available only to businesses with EIN

What Is Mercury Bank?

Mercury is a banking platform aimed at startup companies with no fees and no minimum balance or cash requirements. Available only for US-based businesses with an EIN, Mercury offers FDIC-backed checking and savings accounts and, for some customers, access to a high-yield treasury account.

Mercury now offers a corporate card called IO aimed at smaller businesses that may not qualify for other corporate card offers. Mercury has gained a top spot on our best online business bank accounts.

Let’s dig deeper into Mercury’s rewards, perks, features, and more to understand better what Mercury can deliver and what type of business it’s best for.

Services Offered By Mercury Bank

On paper, Mercury Bank’s banking services are a bit lacking compared to other online banks. However, Mercury Bank has a very specific focus on startups, and the services it does offer work well for up-and-coming businesses. You’ll still need another online bank for a traditional checking and savings account.

Mercury Bank offers:

• Credit cards
• High-yield mutual funds
• Venture debt

Mercury Bank Rewards & Perks

Mercury offers cashback, plus a large number of more unique features geared specifically at startups, earning it a 4.5/5 star rating for this section. With Mercury you’ll find:

• Partner Discounts: Mercury also offers numerous perks, including a wealth of discounts and promotional offers from a range of partnerships with business software companies like 30% off QuickBooks, 30% 0ff Hubspot, $100k in AWS credit, and more.
• Cashback Rewards: Mercury recently added a corporate charge card with an automatic 1.5% cashback on all purchases. No personal guarantee or credit check is required, and you can get an unlimited number of physical and virtual cards for your team members.
• Mercury Treasury APY: Some Mercury bank customers will have access to a special savings vehicle, Mercury Treasury, that earns a high APY by putting funds into US government securities and money market funds. This fund is ideal for new businesses that might have a large amount of startup cash on hand and need to keep it liquid while ideally earning higher-than-average interest. You’ll need a minimum balance of $250,000 to join, and Mercury will build a custom portfolio based on your startup’s balance and cash flow.
• Free 2-Day Shipping: The Mercury charge card comes with an unusual benefit: free 2-day shipping from hundreds of online stores, thanks to a service called ShopRunner. To qualify for IO, you’ll need at least $50,000 in a free Mercury checking or savings account.
• Celebrations: Mercury also advertises special rewards it calls “celebrations.” According to the website, when your company hits a major milestone, such as raising a round of funding, launching a special feature, or going public, you can expect Mercury to hear about it and send you gifts in celebration.
• Venture Debt: Mercury offers venture capital resources to eligible startups.

Mercury Bank Pricing & Fees

Mercury earns a 4.3/5 star rating in the pricing category by charging almost no fees and being transparent about the few fees you might encounter.

For starters, Mercury does not charge any monthly or ongoing fees, and you won’t find any minimum balance or other requirements to meet. You won’t run into foreign transaction fees or wire transfer fees with Mercury, either. And while you can enjoy fee-free access to ATMs on the Allpoint network, you won’t be charged fees by Mercury for using your debit card out of network, though the ATM owner may charge you.

You may encounter some fees for specific uncommon transactions, namely mass payments through the Mercury API, treasury management, and currency exchange. If you’re converting foreign currency to US dollars, you will be charged 1% of the USD amount to cover Mercury’s costs through the SWIFT network. The only other mark against Mercury in this category is that Mercury doesn’t offer cash deposits at all, so they lose points in the transaction fees breakdown.

Mercury Bank Eligibility Requirements

Although Mercury banking services are aimed at tech startups, there are no eligibility requirements that would prevent other types of businesses from using Mercury. The main requirement is that the business is US-based, and you’ll need to have an EIN to apply.

Unfortunately, Mercury Bank is not available to sole proprietors or trusts. Mercury is also unavailable to some businesses classified as high-risk, specifically adult entertainment, marijuana, and internet gambling. Although Mercury limits its services to US-based businesses, you can use Mercury if you live overseas. However, Mercury declines to work with businesses where the owners reside or significantly operate in a number of prohibited countries or regions.

Mercury Bank Features

Mercury delivers the core banking services you’d expect to find in a business bank, with a couple of notable omissions. For one, Mercury does not offer merchant services, though you will find integrations with payment processors, such as Stripe. And you won’t find some traditional credit options, such as loans and lines of credit. However, we are pleased to see that Mercury has added a new corporate credit card, called IO, that comes with a satisfying 1.5% cashback rate on all domestic and international spending.

Additionally, Mercury can connect you with specialized credit aimed at startups, including access to venture capital. This includes an investor database that’s searchable by industry, type, check size, and global location.

It’s important to note that Mercury may not be a good business banking choice for you if your company does significant cash sales, as Mercury does not accommodate cash deposits.

Let’s take a look at the features on offer with Mercury Bank:

• Credit Cards: Mercury recently rolled out a corporate card known as IO. Because Mercury does not have high cash-on-hand requirements for users, this card may be an excellent option for businesses that wouldn’t qualify for other corporate cards, such as Brex, that target larger customers. IO delivers a straight 1.5% cashback rate on all domestic and international purchases, with no foreign transaction fees. Cash back is deposited instantly into your Mercury bank account. (You must use Mercury’s banking services to use IO.) Applying will not involve a credit check. Full repayment of your IO balance is required monthly, with a credit limit determined by your Mercury account balance. Mercury does not report to credit bureaus.
• Debit Cards: Mercury accounts include virtual and physical Mastercard debit cards, with employee cards available. You can set custom limits on employee cards and track spending. You will not receive rewards for using the card, with no points or cash back options.
• Mobile App: Visit Google Play or the Apple App Store to download the well-rated Mercury banking app for Android and iOS. These apps let you access your account, manage your team, and access integrations.
• Deposits and Transfers: Add checks to your Mercury account using the mobile app. Add funds via ACH and send money with domestic and international wire transfers. Mercury suggests using a connected third-party service, such as TransferWise, to send international payments. Mercury does not accept cash deposits at this time.
• Startup Tools: Mercury supports startups with Mercury Raise, a pitch opportunity with 500+ investors; Series Tea, a chance to hear expert advice on investing, pitching, and more; and Future of Fintech, where top investors and operators talk about fintech trends.
• Integrations: Mercury is fully integrated with QuickBooks and Xero’s accounting software and will automatically sync transactions. Mercury also works with Stripe, Venmo, and PayPal and can accept Amazon payments. Mercury also uses Plaid to let customers connect their other business bank accounts with Mercury, enabling quick transfers between accounts and making all your financial data accessible on one dashboard.
• ATM Network: You can use your Mercury Mastercard debit card fee-free at any of the 55,000+ Allpoint ATMs located nationwide and internationally.

Transaction Processing Timeline

Like all banks, Mercury takes some time to process transactions. Here’s what you can expect with Mercury:

Mercury Bank Application Process

Mercury Bank is not very transparent about its application process, though the process is reportedly easy. You will need to share your Social Security number for identification purposes, but you won’t be subject to a credit check. Applications can be submitted online, and Mercury says applications are processed quickly, with a decision typically available in less than five to seven business days.

Mercury Bank Sales & Advertising Transparency

Mercury Bank is relatively transparent with its sales and advertising, although we would like slightly more information about the company’s application process. overall, customers have positive reports regarding Mercury’s sales ethics.

Mercury Bank Customer Service

Mercury banking support options are limited, with the company funneling all queries and support requests through email. There’s no live support via chat or phone, and you cannot submit a support ticket. You can browse an extensive FAQ section and read about 100 articles in the help center on the Mercury help center online. Mercury is active on social media sites, including Facebook, Twitter, and YouTube.

Despite the limited support options, some customers seem pleased with Mercury, while others complain that support offerings are lacking and reps are slow to respond. Overall, these points earn Mercury a 4.2/5 star rating for customer service.

Mercury Bank Reviews

Mercury Bank is not accredited by the Better Business Bureau, although the BBB maintains a profile for Mercury with a B- rating. Many negative reviews on the BBB site come from would-be users angry that they were not approved to use Mercury. Additional complaints on the BBB site involve account closures and difficulty accessing funds. Mercury is responsive to these complaints, which is a positive point for Mercury.

On third-party review sites, Mercury Bank fairs better with an aggregate third-party review score of 4.1/5 stars. The company’s mobile apps also have high ratings. Overall, Mercury earns a 4.1/5 star rating for user reviews.

Negative Mercury Bank Reviews & Complaints

• Onboarding takes too long
• Difficult to access customer service
• Lengthy period for deposits to clear
• External transfers can be glitchy

Positive Mercury Bank Reviews

• Fast, responsive customer support
• Core services are complete and function well
• No fees
• Easy to use

Is Mercury Bank Safe?

Mercury Bank is safe. Keep in mind that Mercury is a financial technology (fintech) company, not a bank. Banking services are provided by FDIC-insured banks, including Evolve Bank & Trust. Mercury checking and savings accounts are insured through the FDIC to the legal limits.

Mercury protects users’ data with third-party penetration testing, encrypted passwords, two-factor authentication via Authy and Google Authenticator, and a fully encrypted database.

Final Verdict: Is Mercury Bank Worth It?

Mercury Bank delivers for its target audience: startups looking for an easy entry into business banking services. Of course, it’s not the only business bank ready to serve new businesses, but some features make Mercury stand out. For one thing, Mercury delivers almost fee-free banking. With no account minimums, no monthly or ongoing fees, or ATM fees, most users will be able to bank without any charges. Mercury’s few fees, including treasury management and currency exchange fees, won’t be encountered too often by the typical startup.

So, what’s missing with Mercury? We’d like to see a savings vehicle that delivers something close to the national average. Although some Mercury customers with high amounts of cash on hand can easily top that average by investing at least $250K into Mercury’s Treasury account, that won’t be an option for all users. Still, it’s worth noting that while Mercury is open to all kinds of businesses, its target audience is tech startups that just might have that kind of cash, thanks to investors backing their efforts.

Overall, Mercury hits the target for startups poised for growth. If that sounds like you, Mercury is a safe banking choice. If your small business is looking for a business bank that’s aimed at a more general audience, you might consider another option from our list of the best bank accounts for small businesses.

Business Banking Review Methodology

Merchant Maverick has been researching and reviewing business banking services since 2015. Our writers have tested over thirty different banking products, including checking accounts, savings accounts, employee spending cards, and more. In each review, we evaluate rates and fees, services, rewards, features, eligibility requirements, application process, sales and advertising transparency, customer service, and user reviews.

Read more about how we rate business banking products.

When comparing different banks and banking services, we consider many data points, including the ease and transparency of the account application process, account fees, sales ethics, minimum deposit requirements, and revenue, time in business, and credit score requirements. Our lists of the best banking services include only those we’ve deemed worthwhile from multiple vantage points, and often share qualities such as widespread accessibility across fifty states, valuable rewards, numerous transaction options, and competitive APY.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure the banking services included meet our internal standards for quality and reputation.

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