To common users of banking services, money transfers are money transfers. As in, you don’t consider them complex: just a tool to send and receive funds. But then, you face a plethora of terms like bank transfers, wire transfers, electronic payments, online transfers, and so on. And you start to wonder – “is there a difference between all of these?” and “what should I use?”. Well, let’s figure it out together! In this article, Genome will primarily focus on bank transfers and wire transfers and how they differ and compare wire payments to other transfer options as well. Wire transfer:
A business bank account has long stopped being an option. Modern companies of all sizes working both on domestic and international markets choose to have business wallets not because it’s a requirement. The explanation is much more simple – a business account makes the life of company owners and their clients effortless and painless (almost).
Genome helps its customers with opening both business and merchant accounts, which are the must-haves for any company. Today’s blog post will discuss the most popular business bank accounts and what makes them special.
Business account explained
There’s a common misconception that a business bank account is some sophisticated and challenging financial service designed for large companies only. In fact, it is much more simple than that. Business digital wallets are created for sending and receiving funds related to your company. Among them are salary for the employees, payments from clients and contractors, rent, bills, etc.
The separation of business and personal payments is the major advantage of having a business account. What’s more, having two online accounts is more convenient for paying taxes or obtaining proof of your business activity. With some banks, one can even issue invoices directly in their company account and send them to customers.
Why a merchant account is needed
And what is a merchant account? – you may ask. Why do I need it if I already have a business account?
A merchant account allows companies to accept funds from clients. It works for both online and in-store transactions. Thus, you will need this online account if you want to receive payments on the website or in a physical shop. However, this account only accumulates the funds paid by your customers and does not have any advanced functionality.
Luckily, many banks and financial institutions can open both business and merchant accounts for your company so that you can easily manage them within one platform.
How to choose the top best online business banking account
For some business owners, it’s crucial to have multiple IBANs, while others pay special attention to virtual business cards and user-friendly mobile applications. There’s no one recipe that will work wonders for all the companies. When looking for a business bank account, we recommend analyzing the following:
- online money transfers supported, their limits, timeframes, and fees
- monthly charges and any costs of going over limits
- currencies supported, exchange rates, and fees
- the functionality of web and mobile apps
- multi-user access
- accounting, e-commerce, and marketing integrations (if applicable)
- cards supported (physical and virtual, debit and credit)
- onboarding process and timeframes
- documents required
- physical branches
This list can get smaller or bigger, depending on what you’re expecting from your company business account. You can also consider opening a business account with the provider of your personal online account for more flexibility and smooth financial management.
Top 15 online business banking accounts
Looks like the more you read about digital business wallets, the more confused you get? No worries, we’ve prepared an overview of the top best online business banking accounts to get you familiar with the available options.
First, let’s have a look at the giants of online banking – the largest neobanks in the world and what they’ve prepared for their customers.
A financial unicorn, Revolut has tailored offers for both freelancer and company business bank accounts. One can use both mobile and web applications to manage their business expenses. Revolut boasts its multi-currency (EUR, GBP, USD, and others – 28 currencies in total) accounts and multi-level access. That is, an account owner can invite other people and grant them different roles and responsibilities according to their position in the company. There are also a few pricing plans to choose from, all of them having different account limits. With an Enterprise plan, one can customize all the features and limits.
This digital bank currently offers business accounts only for sole proprietors and limited companies registered in the UK. Such organizations as partnerships, public limited companies, trusts, etc., are not supported. Monzo has integrations with such accounting software as QuickBooks, FreeAgent, and Xero. Business owners can use these accountancy tools right from their Monzo digital wallets. FSCS (Financial Service Compensation Scheme) protection and no fees for spending money abroad are the benefits that always attract new Monzo clients. With this business account, one can order a business debit card and send instant online money transfers within the UK.
A German digital bank, N26 gained recognition all around Europe for affordable pricing and tailored plans. There are 4 different business pricing plans, each of them with various limits and accesses. One can open an account for free with no initial deposit required. Unfortunately, it’s impossible to have both N26 personal and business wallets at the same time. One more cool thing here is cashback on every purchase (from 0,1% to 0,5%), but the percentage depends on your account type. Finally, N26 does not have any physical branches, which may be an issue for some users.
One of the best things about a Bunq business account is that they offer a free savings account, and one can earn up to 0.09% on their balance monthly. A monthly interest rate of 0.27% applies to the first earned € 10,000. With Bunq, one can have up to 25 sub-accounts, each one with a different IBAN. It allows to organize and manage all the company payments and expenses. One can accept funds into a Bunq business account via free personalized payment links. People or companies do not need to be Bunq clients to pay via this link.
This financial service is widely known for the fast, simple, and cheap international payments using bank cards. When it comes to the PayPal business account, it has advanced functionality that helps businesses grow and sell goods/services online. For instance, you can make use of marketing solutions and reporting tools to have insights into how your company is performing in terms of sales and revenue. Invoices customization is also available with PayPal – you can even add your logo to the template. Withdrawing money is also easy and does not take much time. First, you accept funds into your PayPal business account and then can send them to another linked bank account if needed.
A former TransferWise, this provider offers multi-currency accounts and multi-user access to the wallet. One of their major advantages is automation – you can automate payments and workflow using API. Wise has Xero integration for synchronization and tracking all financial activity on your business account. While talking about security, this business wallet is protected with 2FA and HTTPS encryption. Wise has a well-deserved reputation as an affordable service for quick cross-border online money transfers among the top best online business banking accounts. Just like with overseas payments, Wise business accounts have mid-market exchange rates with no mark-up for currency exchange.
This UK fintech, just like most of the top best online business banking account providers, has multi-currency wallets with multiple-user access. Remember that only registered directors of the company can actually access a Starling business account. It means that one cannot invite an accountant to manage company finances here. Starling has free ATM withdrawals (up to 6 per day) and customer support available 24/7 via email, phone, and chat. International online money transfers can be ordered to almost 40 countries but are not free. One can also create invoices and send them to clients right from the application.
It’s a new EMI that boasts a great variety of banking services within one ecosystem. Genome supports personal, business, and merchant accounts, so that one can use all of them in functional, familiar applications. With a multi-currency business wallet, one can set up different access levels to the account. What’s more, you can have both physical and virtual debit cards and manage them on your smartphone. The onboarding process takes only a few working days, so one can start using their business wallet within 1 week once the application has been submitted. 15 additional multi-currency accounts can be created in a dashboard as soon as an account is ready.
In the next part of our article, we will talk about not-so-famous financial providers and their business accounts.
Unlike most neobanks, this provider has a whole range of traditional banking services such as a savings business account and different loan options. There’s no monthly or yearly maintenance fee (in case your daily balance is always at least $5000), but you need to have a minimum of $100 as an opening deposit. With multiple users having access to the wallet, they can also apply for personal, home, and auto loans with low-interest rates. On top of the financial services offered, Axos Bank grants access to the financial literacy platform with numerous tutorials.
This bank has a wide variety of different pricing plans with different functionality. The basic standard package is free. There are even three special plans for large organizations with a minimum initial deposit of $25,000, $500,000, and over $1 million. Each package has a different set of banking services tailored specifically to the amount circulating in the account. One of the largest benefits here is that all these accounts are checking ones so that you can use your money freely anytime. With a BankProv, your deposits are protected under the FDIC and DIF schemes.
This provider is especially handy for small businesses as they have no monthly fees and no initial deposit required. With a BlueVine checking account, you can also have two additional sub-accounts to separate finances. BlueVine ATM network consists of almost 40 000 locations, which gives even more flexibility for cash deposits and withdrawals.
Chase Business Complete BankingSM
If you’re looking for excellent online financial services and physical branches, Chase banking is totally worth your consideration. One of the top best online business banking accounts, they even give their users a chance to win $300 for opening a checking business account with them. Even though Chase has charges monthly for its services, there are numerous ways to avoid these fees. For example, you just need to maintain a minimum daily balance or make purchases with a Chase business credit card. Finally, one can also open a merchant account with them and manage all company finances from one bank.
Here one can choose from 4 of the available packages of different checking accounts for your business. The first one – Tailored Checking, is a basic plan, but it has amazing features. One thing worth looking into is the unlimited number of transactions allowed in the account – this is suitable for companies processing large amounts of payments. LendingClub does have a monthly fee of $10 and a minimum initial deposit of $100. However, if your account balance goes to more than $5000, the monthly charge is waived. 1% cashback applies to all online transactions made with a debit card.
A financial technology company, Mercury opens accounts for both US and non-US residents. One can apply online from anywhere in the world – either from mobile or web applications. This provider operates 100% online and has no physical branches. They offer both checking and saving accounts, as well as physical and virtual debit cards. Mercury can be useful for small ecommerce companies or startups because of its accountancy tools (like Xero and Quickbooks) and ecommerce integrations with Shopify, Stripe, PayPal, and Amazon. Different online money transfers are supported – check, wires, and ACH.
This banking solution has numerous attractive features for an affordable price – only $10 per month. First of all, there’s no minimum balance, and you can close an account anytime. Secondly, functional mobile and web apps give you access to all banking services needed round the clock. Thirdly, various integrations (accounting and ecommerce) make your company’s growth seamless and painless. The only downside in NorthOne is the $15 fee for any incoming and outgoing wire transfers. Apart from that, there are no additional charges if you pay a monthly fee in time.
As you can see, there are more than enough options to choose from. Top online best business banking accounts vary from country to country and from company to company. So when considering your options, don’t forget to check international banks. It’s quite possible that they can have better functionality than local ones.
Which bank is best for an online business account?
With the wide range of online business banking account offers, the only way to narrow down the list is to figure out what functionality will work best for your company. Whether you’re a small online business owner or run an extensive physical network, online banking services will most likely be handy, especially if you’re operating internationally. Therefore, when looking for a financial services provider, consider factors that are crucial for developing your company. These can be transfer limits, monthly fees, multiple access to the account, currencies supported, etc.
What type of account is best for a small business?
Small companies will probably make the most use of online business banking accounts from neobanks. One does not need to sign any papers and bring them to physical branches to open an account. On the contrary, you can fill in the application and upload the requested documents right in the mobile banking app. Your business wallet should be ready within a few working days – it’s as simple as that. On top of that, neobanks bring to the table lots of cool features that traditional banks do not have, such as instant transfers, monthly analytics, and others.
How do I open a business bank account in the EU?
In most cases, you will need to have your business registered in some country in Europe. However, you can look for the banking services providers that do not have such requirements and still offer a euro business account for companies registered in the US or UK, for example. All the other steps are the same – you apply for the account, provide the necessary documents and information, and wait for approval.
Which bank account is best for startups?
Among the top best online business banking accounts, the best one for a startup will be the one that meets the company’s needs and helps it grow. That is why startup owners have to establish their needs and clarify what they’re expecting from an online business banking account. Some companies focus on multicurrency wallets and low fees, while others seek increased transfer limits, bank cards, and functional mobile applications.Do all business bank accounts charge?
Not all business wallets are necessarily paid. Keep in mind that some financial services providers have different pricing plans that come with various sets of features and accesses available at your online business banking account. Usually, free accounts have numerous limits, including the number of transactions and the maximum amount or limited currency exchange possibilities, etc. Nevertheless, a free business account does not mean worse quality. If you’re only starting your own company and do not plan to do many financial operations on a bank account, a free plan might be a great match.
What is needed to open a small business bank account?
The list of requirements is more or less the same with every bank but can also be adjusted to the laws and regulations of a particular country. First of all, one will need to submit company documents (registration, proof of ownership, and so on). Secondly, one needs to provide the owner’s (or owners’) personal information, including name and last name, phone number, email address, ID/passport, etc. Some banks can also ask for an initial deposit to be made in the account before you can actually use all the other features. In some rare cases (for example, when a company is new), financial providers want to see a business plan or even the list of offered services/goods to ensure that they’ll be actually working with a real company to avoid scammers or fraudsters.