One of the best methods to get your finances in order as an e-commerce owner or start-up is to get a reliable bank. Unfortunately, many of the banks available only cater to big businesses while leaving the e-commerce and small business owners out. As a new e-commerce owner, every income and expenditure spent counts. Hence, the last thing you need is a bank gulping all your profits in the name of charges. It’s not just enough for a bank to keep your money; it should be dependable. You need a bank that won’t cost you a fortune; you need a bank whose goals align with your business’s, and you need a bank that has your interest ingrained in their minds. Importantly, you will need a bank that will deliver value-filled services.
Thankfully, some banks understand the struggles of e-commerce and start-ups. And they are ready to give you the best. These banks have low-cost maintenance and fewer requirements. In a sea of banks for e-commerce, it becomes a herculean task to pick the best. You’re just in luck as we have compiled a list of banks created especially for e-commerce and start-ups.
Criteria for Choosing the Best Banks for E-Commerce
Generally, you can get any bank you want a stone thrown from your home. If you live in a city, you can’t get anything less than three banks from your house. Nevertheless, that doesn’t mean all these banks are best for e-commerce. Many banks appreciate large deposits but have nothing to offer in return. Even when it’s obvious the account is a business account, they offer no benefits to the owner.
What you need is a bank that focuses mainly on e-commerce, especially start-ups. They understand the struggles (low cost, need for high-interest rates, and personal relationship) of e-commerce better. It’s important to note that the banks mentioned in this article are strategically picked based on the following criteria: low cost, transaction limit, dependability, security, bank features, and good customer service. A typical bank for e-commerce or start-ups should cost less and have great features.
The Four Best Banks for E-commerce
Mercury Bank: This is a bank specially built for e-commerce and start-ups to grow and manage their accounts. It is no surprise as mercury is the name of the Roman god of commerce. They offer savings account, debit cards, Automated Clearing House (ACH) payments, Check payments, domestic and international wire transfers, and many other features include:
- Virtual-based: Mercury bank understands that moving back and forth to send and receive funds is tedious for e-commerce owners. Therefore, all transactions, be it opening an account, transferring funds, or depositing money, are done online. It takes nothing less than 10 minutes to open an account with Mercury Bank.
- No Cost: It takes $0 to be an account holder with Mercury bank. All their accounts are free. They have no minimum balance or any hidden charges. Also, when you sign up with them, you pay no account opening fee or monthly dues. The things that cost money, however, are wire transfers that range from $5 for domestic transfers to $20 for international transfers.
- Security: No one will trust a bank with no plans to secure finances or keep their details private. Luckily for Mercury Bank account holders, the bank has taken the pain to put some processes to protect your funds. For instance, the bank needs your social security number to verify your identity. Also, they employ another organization to conduct some tests to determine any threats. They also use a one-time password for authentication through SMS. And your funds are safely secured up to the FDIC limit of $250,000.
- Allows Non-residents: Mercury Bank proudly says they support companies created by individuals all over the world. It is a unique feature from Mercury Bank as it permits non-residents business owners to open an account without stepping their feet on U.S. soil.
Pros
- No minimum or maximum balance
- Accessible to non-residents
- Smooth signup process
- Allows team members
- Get a virtual debit card instantly
- Allows multiple physical cards
Cons
- It allows only six transfers per month.
- No cash deposit
- Only support businesses with the U.S.
Transferwise: Transferwise is another online money establishment that makes it easy and cheap for e-commerce owners to send and receive funds. The bank, specifically, offers e-commerce entrepreneurs a separate account under its business account. The bank account allows users to get paid in currencies like the British pounds, the United States dollars, euros, Australian dollars, and New Zealand dollars. It is a seamless process that makes international trading convenient. E-commerce owners can open a free account and receive payments for free. Other benefits are:
- Stress-free Transaction: Generally, every penny counts for e-commerce and small business owners. Knowing this, Transferwise allows the minimum transfer of $1 and a maximum transfer of $199,999 that can be between 3 – 5 days. And all transactions are online. Transferwise allows over 50 currencies like Canadian Dollars, Naira, the United States Dollars, Swedish krona (SEK), and South African Rand (ZAR).
- Sending and Receiving Money: After opening a free account, you will receive, you will receive a United Kingdom account number and sort code, the United States routing and wiring number, Australian account number, European IBA, and Bank-State-Branch (BSB) number, and New Zealand account number. These accounts allow you to receive their currencies conveniently without paying conversion fees. You can use the bank account to send and receive funds from online trading places like Amazon and Stripe. But Transferwise charges a stipulated amount for outgoing transactions.
- Debit Mastercard: As an e-commerce owner with Transferwise, you can get a debit Mastercard that allows you to spend currencies in your account, convert currencies and make free ATM withdrawals up to $250 a month. Also, the card automatically converts your money to the local exchange rate if sent in another currency. You only pay about 0.35% – 2.85% conversion rate.
- Security and Privacy: Being an online money institution doesn’t make Transferwise any less regulated. Just like a traditional bank, Transferwise follows the United States regulations. The regulation states that all banks should keep money in a low-risk financial corporation. Although Transferwise doesn’t store funds in Financial institutions like other traditional banks, it uses a scheme, safeguarding, to protect your money. And the information you provide is secure as the online money institution uses a standard form of encryption called Secure Sockets Layer (SSL). This encryption keeps your details intact and ensures they don’t get into the hands of a third party.
Pros
- No minimum transfer
- Low fee
- Good exchange rate
- Receive payment in local currency
- Open and transparent
Cons
- Only allows trading markets like Amazon and Stripe
- It can only receive payments in five currencies
- No cash deposit
Novo: Novo is another superb international mobile financial institution for e-commerce and small businesses. It is a very secure way to send to and receive funds from over 100 countries from the comfort of your house. The signup process takes about ten minutes. You can receive and transfer money using their mobile application. Something unique about this online bank is its integration with Transferwise, Xero, Slack, and Zapier. The integration makes it easy for money to move from your Novo account to the mentioned banks. Some of the other benefits are:
- Low cost: As long as you load your bank account has at least $10, you will not pay any fee to run it. It is called a fee-free service. There are no minimum balances, no hidden charges, and monthly service charges. However, the minimum amount to open an account is $50 . Also, incoming transfers are free of charge for both domestic and international.
- Free Debit Card: Novo doesn’t charge debit cards and ATM fees. And their debit card is accepted globally. You can decide to limit the notifications that pop up on your phone or laptop for every transaction. Also, your Novo debit card is safe because Mastercard EMV technology protects it.
- Customers Service: Novo offers 24/7 customer support to help you with any issue that may arise while transacting.
- Security: Like other online banks for e-commerce, your deposit of up to $250 is safe through their partner bank, Middlesex Federal Savings, a member of the Federal Deposit Insurance Corporation. Besides, they have efficient security teams and an encryption service that protects your information.
Pros
- Easy navigation on the website
- Free transfers
- No minimum amount
- 24/7 support system
- No fee for debit card replacement
Cons
- Requires minimum amount to open
- ATM refund
- No cash deposit
- No interest in your account balance
Conclusion
Choosing the wrong bank at the early stage of your e-commerce could mar your business. However, the right bank will assist you to do proper accounts of all income and expenditures. Regardless of the bank you pick, it is pertinent you don’t bank with a financial institution that makes you spend more than necessary. Choose only a bank that can elevate your business faster.