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American Express National Bank (Member FDIC) is well-known for its credit cards, but its Business Checking account is equally impressive. This account features low fees, earns interest, and includes Amex’s renowned customer service.
Check out this American Express Business Checking review to see if it’s a good fit for your small business.
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American Express Business Overview
In October 2021, American Express introduced its fully digital Business Checking account, adding a familiar name to a market dominated by lesser-known banks and fintech companies.
This free business checking account has no monthly fees or charges for stop-payment requests or incoming wire transfers. What sets American Express Business Checking apart is its 24/7 live customer service, competitive interest rate, and generous welcome bonus.
Account holders can deposit funds through mobile check deposits, ACH, and wire transfers and withdraw money from over 70,000 MoneyPass and Allpoint ATMs in the U.S. at no cost. However, cash deposits aren’t an option, and out-of-network ATM usage may incur fees from the ATM owner.
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Pros & Cons of American Express Business
Pros
- 24/7 customer support availability
- No monthly fees or minimum opening deposit is required
- No excess transaction fees and no charge for incoming wires
- Earn 1.30% APY on balances up to $500,000
- Access to over 70,000 MoneyPass and Allpoint ATMs in the U.S. without fees
- Earn Membership Rewards® points on business debit card purchases
- Frequent welcome offers for new customers
Cons
- Unable to deposit cash
- No outgoing international wire transfers
- No physical branches are available for in-person services
Account Basics
American Express provides the American Express Business Checking account as its sole business bank account . However, the bank also offers credit cards, merchant services, and lending solutions.
American Express Business Checking Account
The American Express Business Checking account is free, with no monthly maintenance fees and minimum balance requirements. It offers an attractive 1.30% Annual Percentage Yield (APY) on balances up to $500,000, though balances above this amount don’t earn interest.
Additionally, you can earn 1 Membership Rewards® point for every $2 spent using the Business Debit Card, a rare perk for business checking accounts. The account also comes with a notable welcome bonus.
When you open an American Express Business Checking account and deposit at least $5,000 within the first 30 days, maintain an average balance of $5,000 for the next 60 days, and complete five or more qualifying transactions within those 60 days, you can earn 30,000 Membership Rewards® points.
Qualifying transactions include mobile deposits, check deposits by mail, and electronic transactions like ACH, wire, and bill payments.
This account also provides access to over 70,000 surcharge-free Allpoint and MoneyPass ATMs and supports mobile check deposits. While you can order checks through a third-party service, e-check services are included. However, cash deposits aren’t supported.
As American Express doesn’t have physical branches, customer service is available only online or by phone. Currently, the bank doesn’t support Zelle, so payment services are limited to ACH and wire transfers.
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Other American Express Products and Services
Besides its business checking account, American Express National Bank provides a personal rewards checking account, a high-yield savings account, and CDs. They also offer various business and personal credit cards, merchant services, and a business line of credit, detailed below.
Credit Cards
American Express credit cards are a favorite among consumers and business owners, offering a variety of options, including cash-back cards, travel rewards cards, and premium personal and business cards. They also feature several co-branded travel cards with partners like Hilton and Delta and rewards cards that earn Membership Rewards points.
Here are a few popular American Express business cards (terms apply):
- American Express® Business Gold Card
- American Express Blue Business Cash™ Card
- The Blue Business® Plus Credit Card from American Express
Merchant Services
American Express Payment Accept is a viable option for business owners with a physical location or those looking to accept payments through their American Express Business Checking account. This service lets you send custom URL payment links and create professional invoices.
Payment Accept charges 2.25% per transaction, which is lower than many other payment processors. This service isn’t currently accepting new customers, but you can join the waitlist if you’re interested.
Line of Credit
The American Express® Business Line of Credit offers businesses that have been operating for at least one year and generate a minimum of $3,000 in average monthly revenue the opportunity to borrow between $2,000 and $250,000.
Existing American Express customers can log into their accounts and complete a pre-filled application, while non-customers can also apply. Approval and review are required for all applicants.
Approved businesses can use the funds for various business needs, with each draw on the account considered a new installment loan. Interest rates vary based on your credit profile and loan term.
Total monthly fees range from 3% to 9% for six-month loans, 6% to 18% for 12-month loans, 9% to 27% for 18-month loans, and 12% to 18% for 24-month loans. Fees are variable and charged per draw on the line of credit.
How to Access Your Money
Although Amex lacks physical branches, there are numerous ways to manage your money.
Deposit Options
A notable absence is the ability to deposit cash in a branch. Instead, here are alternative methods to fund your account:
- Online transfer from another Amex business account (personal Amex bank accounts cannot be linked/transferred)
- ACH transfer from an external bank account
- Wire transfer from an external account
- Mobile check deposits using the Amex Business Blueprint mobile app
- Deposits from accepted credit card payments (subject to terms and fees)
Credit card payments are accepted through a separate service known as American Express Payment Accept. This service enables businesses to accept credit card payments from clients/customers, with specific terms and fees applicable.
Withdrawal Options
Although you cannot visit a branch to withdraw funds from a teller, there are several convenient ways to access your money, including the ability to withdraw cash:
- Online transfer to another Amex business account (personal Amex bank accounts cannot be linked/transferred)
- ACH transfer to an external bank account
- Wire transfer to an external account (fees may apply)
- Withdraw cash from an ATM
- Make purchases using your debit card
ATM withdrawals are free at thousands of in-network MoneyPass® ATMs. Withdrawals from non-network ATMs may incur fees. There’s a foreign transaction fee for withdrawing money in a foreign currency or from a foreign ATM.
Who Is American Express Best For?
American Express is a versatile choice suitable for startups and larger companies looking to consolidate their financial services. Consider it for your business if you aim to:
- Earn Membership Rewards points through your checking account
- Earn a competitive APY on your bank account balance
- Utilize a business checking account with no monthly fees
- Earn rewards on debit card purchases
- Access an online-only bank that’s convenient from anywhere
- Enjoy the benefits available to American Express personal or business credit cardholders
Customer Service
A significant advantage of American Express business checking is the availability of 24/7 customer service. Additionally, you can utilize the FAQs section or chat feature on their website. For phone support, call anytime at (855) 497-1040.
American Express Business Alternatives
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Small business owners deserve a checking account that supports their daily operations without limitations. Bluevine Business Checking accounts might be the perfect fit for some. These accounts feature no fees and unlimited transactions, but what sets them apart is the impressive interest rate: earn 2.00% on balances up to $250,000. Read the full Bluevine review.
It’s important to note that Bluevine is a financial technology company, not a bank. Bluevine’s banking services are provided by Coastal Community Bank, which is insured by the FDIC and participates in the Insured Cash Sweep program via the IntraFi network.
>> Get Started With Bluevine >>
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Lili is a financial technology company offering business checking accounts. These accounts are ideal for tech-savvy business owners who seldom use traditional payment methods like checks. Lili partners with Choice Financial Group for banking services and insures deposits up to $250,000 through the FDIC.
Initially designed for freelancers in 2018, Lili has since expanded to serve various business entity types. It now offers higher deposit and transfer limits to accommodate larger businesses.
Go through our full Lili review.
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Axos Bank is an excellent option for those who prefer digital banking. It offers few fees, interest-bearing accounts, and a vast ATM network.
Axos provides a broader range of accounts than many online banks, helping you save on fees. While it may not offer the highest savings rates, the yields and rewards on its checking accounts are competitive.
The Axos Bank Rewards Checking account has no monthly maintenance fee and offers unlimited domestic ATM fee reimbursements. Additionally, it has a maximum APY that surpasses many savings account rates. Earnings depend on account usage and other Axos Bank accounts you hold.
American Express Business – FAQs
Bottom Line – American Express Business Checking Review
American Express is renowned for its personal and business credit cards, offering some of the best business cards on the market. In a recent J.D. Power study, it ranked at the top of the industry.
The American Express Business Checking account features unique benefits, including a 1.3% APY and the ability to earn Membership Rewards points, similar to its credit cards. This makes it an excellent choice for small businesses that frequently travel and already take advantage of Amex’s travel perks.
