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Mercury is a financial technology company dedicated to helping startups of all sizes create, build, and grow their businesses with ease.
Mercury provides customers with a zero-fee banking suite, including business checking and savings accounts. While not a bank themselves, they partner with regulated institutions like Choice Financial Group and Evolve Bank & Trust to offer banking services and safeguard users’ finances.
In this article, we’ll explore Mercury reviews and highlight its features.
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Mercury Bank Review
Mercury is a financial technology company, not a bank. This tech-driven background makes Mercury a popular choice for startups, offering services like venture debt funding alongside innovative features such as a customizable read-write application programming interface (API).
Mercury’s business checking and savings accounts are provided through Evolve Bank & Trust and Choice Financial Group. Deposits are protected by the Federal Deposit Insurance Corp. (FDIC) for up to $5 million via these partner banks, which use Insured Cash Sweep networks to distribute funds across multiple financial institutions.
The star rating for this review pertains solely to Mercury’s free business checking account, not the entire platform. This account has no monthly fees, no minimum balance requirements, and no overdraft fees. It also offers benefits beyond typical online business accounts, including free wire transfers, unlimited virtual debit cards, and discounts on popular business tools.
However, Mercury shares some drawbacks with other online banks: it does not accept cash deposits and primarily relies on email for customer support. Additionally, unlike some online-only banks that convert their low overhead into financial perks such as high APYs or cashback on debit purchases, Mercury does not offer these benefits.
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Mercury Is Best for Business Owners Who:
Consider Mercury if you:
- Have more than $250,000 in deposits and want a sweep account to increase FDIC insurance coverage
- Frequently send or receive wire transfers
- Seek access to venture funding
Mercury’s business checking account doesn’t earn interest, but several competitors do. For instance, Bluevine Business Checking offers 2.00% APY on balances up to $250,000 (terms apply) and uses sweep networks to provide up to $3 million in FDIC insurance coverage. However, Bluevine charges $15 per domestic wire transfer.
Pros & Cons of Mercury
- No monthly, overdraft, or ATM fees
- Seamless integration with third-party applications
- FDIC insurance on deposits up to $5 million
- API access enables custom dashboards, sweep rules, and automated mass payments
- Cash deposits are not supported
- No interest on savings and checking accounts
- Must have an Employer Identification Number (EIN) to apply
Mercury Banking Features
Here’s an overview of Mercury’s offerings.
1. Business Banking Services
Choice Financial Group and Evolve Bank & Trust, both FDIC members, offer banking services including checking and savings deposits.
Opening a Mercury checking or savings account incurs no account minimums, overdraft fees, monthly fees, or account opening fees. Customers can deposit checks, use virtual debit cards, and perform various other banking transactions.
Note: Funds in a Mercury checking and savings account are eligible for up to $5 million in FDIC insurance through sweep networks, which Mercury often refers to as Mercury Vault.
2. Corporate Credit Cards
In addition to debit cards, Mercury offers a business credit card called the IO Mastercard, available to businesses maintaining at least $25,000 in a Mercury account. Credit limits are based on cash underwriting, meaning changes in your Mercury account balance could affect your limit.
The IO card is a charge card requiring customers to pay off the full balance each pay period, which can be daily or monthly depending on the balance in your Mercury account.
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3. Mercury Treasury
This service invests funds into “lower-risk mutual funds” through Mercury’s partner, Apex Clearing Corp. It allows startups with more than $5 million in deposits to earn yield.
Important Points:
- Withdrawals from Mercury Treasury take several business days.
- Money market funds have disadvantages compared to directly investing in T-Bills.
- Mercury Treasury is not FDIC-insured.
- Available only to users with account balances over $500,000.
- Investments are in mutual funds offered by Morgan Stanley and Vanguard, insured by SIPC, not FDIC.
4. Mercury Venture Debt
Mercury provides loans to VC-funded companies across various stages and industries. VC firms use venture debt to extend cash runway with minimal dilution. Borrowers can request withdrawals and check remaining capital balances easily.
Loan agreements allow withdrawals anytime during the interest-only period, up to 18 months, followed by a payback period of up to 48 months. Founders can apply to refinance and refresh the loan after raising their next equity round.
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5. Financial Workflows and Accounting Integrations
Mercury offers limited integrations with QuickBooks and Xero and provides “Netsuite-friendly reports” (CSV exports of transactions for reconciliation). The platform also includes Bill Pay services linked to Mercury’s banking platform.
Mercury’s financial workflows are free to try until August 1st, 2024. After that, customers must choose from these pricing tiers:
- Core: No monthly fee, no enriched accounting automation for NetSuite, Bill Pay limited to five bills per month.
- Plus: $35 monthly fee, no enriched accounting automation for NetSuite, Bill Pay limited to 20 bills per month, $2 for each additional bill.
- Pro: $350 monthly fee, includes a dedicated relationship manager, enriched accounting automation for NetSuite, Bill Pay limited to 250 bills per month, $1 for each additional bill.
- Enterprise: Contact Mercury for monthly fee and bill pay pricing, including a dedicated relationship manager.
How Does Mercury Work?
Mercury is a financial technology company that collaborates with FDIC-insured partner banks to ensure the security of your funds.
Mercury provides its users with a comprehensive “banking stack” designed to empower startups and simplify banking for all businesses. This banking stack includes a suite of financial and banking tools, features, and accounts. Mercury’s banking stack comprises:
- Business checking account
- Business debit cards
- Digital tools and integrations
- Check and ACH payments
- Domestic and international wire transfers
- Business savings account
Additionally, you can invite as many team members as needed to your Mercury account and manage each member’s access level with a three-tier permission system:
- Admin
- Bookkeeper
- Custom access
This setup offers flexibility for startups seeking greater control over their banking platform and benefits any business wanting more control over their banking experience while also saving time on administrative tasks.
Mercury Debit Cards are issued by Choice Financial Group and Evolve Bank & Trust, Members FDIC, under licenses from Mastercard.
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How to Apply for a Mercury Account
To apply for a Mercury business account, you will need to provide:
- Your company’s Employer Identification Number (EIN)
- A picture of your government ID
- Your company’s official formation documents
Mercury supports US-incorporated companies, meaning you do not need to be physically present in the US or a resident to open a business account.
Mercury Fees
A standout feature of Mercury banking is its lack of fees, a point highly praised in Mercury reviews. There’s no minimum opening deposit, no minimum balance, no monthly account fees, and no transaction fees. Additionally, there are no overdraft fees, and domestic and international USD wires are free of charge.
The only fees Mercury charges are a 1% fee on currency conversions for non-USD currencies and fees for treasury management and mass payment via API. This makes Mercury banking ideal for startups looking to minimize banking costs and fees.
Mercury Customer Service
Mercury clients must use email for customer support, as phone support is not offered and chat support is unavailable on weekends. Reviews indicate that customers sometimes experience issues with customer support responsiveness.
Mercury Bank Review from Real Users
On Trustpilot, 72% of Mercury bank reviews rate the company as “Excellent,” with an overall average rating of 4.0 out of 5. Reviews highlight its streamlined, user-friendly interface, its suitability for startups, and its email customer support team.
Mercury Bank Alternatives
Small business owners deserve a checking account that enhances their daily operations rather than limiting them. Bluevine Business Checking accounts may be an ideal solution for some. While no fees and unlimited transactions are standard for online business checking accounts, Bluevine raises the bar with one of the best interest rates available: earn 2.00% interest on account balances up to $250,000.
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 Federal Deposit Insurance Corp. (FDIC) and participates in the Insured Cash Sweep program via the IntraFi network.
Lili is a financial technology company offering business checking accounts ideal for digitally savvy business owners who rarely use checks. Lili partners with Choice Financial Group for its banking services, ensuring deposits up to $250,000 via the FDIC.
Initially designed for freelancers when it launched in 2018, Lili has since expanded its online business checking accounts to include most business entity types. The company has also increased its deposit and transfer limits to support larger businesses.
Axos Bank is an excellent choice for those who prefer digital banking, offering few fees, interest-bearing accounts, and a wide 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, its checking accounts yield competitive rewards.
The Axos Bank Rewards Checking account has no monthly maintenance fee and offers unlimited domestic ATM fee reimbursements. Additionally, it features a maximum APY that surpasses many savings account rates. The earnings depend on how you use the account and the other Axos Bank accounts you hold.
Mercury Bank Review – FAQs
Bottom Line
The Mercury Business Checking account is ideal for growing startups. Its lack of daily banking fees helps keep costs low during the early stages, while access to treasury accounts and sweep networks can protect your wealth as you scale.
In addition to business checking, Mercury offers various resources to boost business growth, including investor networking programs and peer discussions. Its integrations with popular business software streamline day-to-day operations, making it a valuable tool for startups.
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