Mercury Bank Review 2024 — Is It Right for Your Startup?

Disclaimer: Mercury is a financial technology (fintech) company, not a bank. Startup banking services are provided by its partner banks Choice Financial Group and Evolve Bank & Trust, Members FDIC.

Mercury is a relatively new online-first banking platform offering checking and savings accounts designed for tech-focused businesses and startups. It’s not available to sole proprietorships, but it’s a great fit for many other business structures and it’s free to use. No monthly fee, fee-free transactions, and API access make this a great choice for startup banking services.

Our Mercury bank review takes a look at what the neobank has to offer and how it stacks up with the competition.

What Is Mercury?

Mercury is a fintech company that provides digital banking services tailored for startups, ecommerce businesses, and small to medium-sized enterprises. Mercury offers a suite of modern banking products that include no-fee business checking accounts, savings accounts, and a high-yield Treasury account. 

The company stands out for its user-friendly digital platform, seamless integrations with popular business tools, and features designed specifically for the needs of growing businesses, such as team management and API access. Mercury partners with Federal Deposit Insurance Corporation (FDIC)-insured banks to provide secure banking services while leveraging technology to offer enhanced financial management tools, making it a popular choice for tech-savvy businesses seeking a more flexible and feature-rich banking experience.

Mercury At a Glance

Jump Ahead:

• Pros & Cons
• Eligibility Requirements
• Mercury Banking Products
• Standout Features
• Customer Reviews
• Mercury Alternatives

Pros and Cons of Mercury Bank

Looking at the key benefits and drawbacks of Mercury can help you determine if it’s the right fit for your banking needs. Below is an overview of the main pros and cons of Mercury banking for startups:

Pros

• Up to $5 million in FDIC insurance
• No monthly fees
• No transaction fees
• No minimum opening deposit
• Free wire transfers
• Access to more than 55,000 fee-free ATMs in the Allpoint network for cash withdrawals
• Powerful digital tools including API access to customize your banking experience
• Access to venture debt financing

Cons

• Not available to sole proprietorships
• Can’t accept cash deposits
• Savings account rate is negligible

Mercury Bank Eligibility Requirements

Unlike many other banking options, Mercury Bank does not open accounts for sole proprietorships. It’s also unavailable to trusts or businesses in certain sectors, like marijuana, adult entertainment, and online gambling. 

Mercury Bank does offer FDIC-insured accounts to most other types of U.S. companies, as long as you have a federal employer identification number. If you have one and you are any other business structure than a sole proprietorship, you should be able to qualify for a Mercury account. 

• Basic details about your company, including your Social Security number and information about any co-founders
• Information about owners with 25% or more ownership
• Information about officers who have control over finances, such as your chief financial officer
• Government-issued ID for you, co-owners, and financial officers
• Business formation documentation
• Employer Identification Number (EIN) verification from the IRS
• A history of deposits and purchases within your account (Mercury will decide when you can deposit checks based on this information)

Mercury Bank is careful to get all the information it needs to verify your company. But once you provide that information, the qualification process is fairly simple. Mercury will let you know if you qualify within five to seven business days. 

Mercury Business Banking Products

Mercury offers three primary business banking products that include checking and savings accounts as well as a high-yield cash management product for businesses with notable cash reserves. Each of these products requires no monthly fees to maintain and they provide access to substantial financial management features offered by Mercury. 

Mercury Business Checking Account

Mercury offers digital business checking accounts tailored for startups, ecommerce companies, and small to medium-sized businesses. These accounts feature no minimum balance requirements and zero monthly fees, making them accessible to businesses of various sizes. Mercury provides FDIC insurance up to $250,000 through the company’s partner banks. 

Account holders benefit from seamless online and mobile banking experiences, including easy fund transfers, virtual debit cards, and integrations with popular accounting software. Additionally, Mercury offers tools for team management that allow businesses to issue employee debit cards with customizable spending limits. 

Mercury Business Savings Account

Mercury also offers a standard savings account alongside the company’s business checking account, providing a straightforward option for businesses to set aside funds. Unlike the high-yield Treasury account, the standard savings account usually has no minimum balance requirement. This makes it accessible to businesses of all sizes. 

This type of account provides the benefit of FDIC insurance up to $250,000 through Mercury’s partner banks. It also integrates seamlessly with Mercury’s digital banking platform, allowing for easy transfers between checking and savings accounts. 

Mercury Treasury Account

Mercury’s Treasury account is a high-yield cash management solution designed for businesses with substantial cash reserves, requiring a minimum balance of $500,000. This account invests funds in a diversified portfolio of US government securities, offering yields of up to 5.29% based on the amount of Mercury deposits. 

The Mercury Treasury account has no monthly fees and is managed through Mercury’s digital platform, providing easy access to balance information and transaction history. It’s particularly beneficial for businesses looking to maximize returns on idle cash while retaining relatively quick access to their funds. Eligibility is subject to meeting the minimum balance requirement and passing additional compliance checks. 

Mercury Bank Pricing Plans

Mercury offers three banking plans: Mercury, Mercury Plus, and Mercury Pro. All plans include essential banking features, such as virtual and physical debit cards, corporate credit cards, cash  back rewards, and FDIC insurance. However, customers looking for enhanced customer support or an extensive feature set can upgrade to gain more from their Mercury banking services. Below is a breakdown of each pricing plan and its included features. 

Mercury

Mercury’s basic banking plan is free and includes the essentials for business banking. With this plan, businesses receive a checking and savings account, free domestic and international wire transfers, virtual and physical debit cards, corporate credit cards, and Mercury’s top-tier security protocols. 

Notable features include: 

• Up to a 5.29% yield
• Bill pay (up to five bills per month) 
• Unlimited invoice creation 
• Xero and QuickBooks integrations 

Mercury Plus

This middle-tier plan costs $35 per month. It includes all of the features available with Mercury’s free plan plus enhanced invoicing features and additional bill pay capabilities. 

Notable features include:

• All features included in the Mercury plan 
• Bill pay (up to 20 bills per month) 
• Recurring invoicing 
• Branded invoices 

Mercury Pro

Mercury Pro is Mercury’s highest-tier plan, and it costs $350 per month. This plan includes all of the features outlined in the Mercury and Mercury Plus plans along with dedicated support, more integrations, and greater bill pay capabilities. 

Notable features include:

• All features included in the Mercury and Mercury Plus plans 
• Bill pay (up to 250 bills per month) 
• Dedicated relationship manager for the account 
• NetSuite accounting integration 

Mercury’s Standout Features

Mercury sets itself apart with several key offerings:

Mercury IO Corporate Card

The Mercury IO Corporate Card is a credit card available to Mercury account holders. It boasts several benefits, including 1.5% cash back on all spending, higher credit limits than many competitors, virtual cards for team members, and spend management tools. Additionally, the cash balance to qualify is relatively low at just $25,000. 

Mercury Vault

A significant advantage of the platform’s banking stack is a product called Mercury Vault, which uses a sweep network system: customer deposits are distributed across a network of FDIC-insured banks rather than being held by a single banking institution. Founders need assurance that their operational cash and payroll funds are secure, and a standard $250,000 FDIC insurance often isn’t enough. This enables Mercury to offer up to $5 million in FDIC insurance through their partner banks, Evolve Bank & Trust and Choice Financial Group.

Mercury Venture Debt

Venture debt is a type of non-dilutive funding that commonly follows a round of equity funding. Mercury offers this startup loan to companies that have raised venture capital within the past 12 months or plan to raise venture capital in the near future. The funding incurs a competitive interest rate as well as an origination fee to process the application. 

API Access

With Mercury, every customer gains read-and-write API access. This allows users to automate their accounts in order to maintain accurate records, create custom dashboards with financial data, and make mass payments with ease. 

Strong Security Protocols

Mercury offers robust security protocols, including FDIC and Securities Investor Protection Corporation (SIPC) insurance, automated fraud monitoring, and deposits made into federally regulated partner accounts. Additionally, Mercury users benefit from strong data security measures and authentication requirements to ensure the security of their accounts. 

Working Capital

Mercury Working Capital loans provide valuable funding — primarily to help ecommerce startups gain short-term financing. This type of loan includes flat-fee pricing, competitive interest rates, fixed weekly repayment schedules, and access to ecommerce experts who can support the business as it grows. 

Startup Deals

Startups that use Mercury gain access to a suite of discounts and perks for everything from accounting software to insurance. Some of the most notable perks include $5,000 in Amazon Web Services (AWS) credits, up to $200,000 off Google Cloud, and 30% off QuickBooks Online. 

Mercury Raise

Mercury Raise provides founders of all industries and stages with free expert mentorship, access to a community of founders, and a data-driven platform that connects startups with hundreds of investors. 

Mobile App Access

Being able to access your business’s banking information on the go is crucial for many entrepreneurs. Mercury offers a mobile app to ensure business owners always have access to their business bank accounts. 

Financial Workflows

Mercury offers extensive features to manage and control your business’s finances like bill payment, payroll, and employee spend features — all included within Mercury’s suite of financial workflows. 

SAFEs

With Mercury, startups can build SAFE for free and download it as a PDF in minutes. Once a startup creates a SAFE, Mercury tracks and categorizes incoming SAFE investments and closes the SAFE once it’s funded. 

Mercury Invoice

Mercury’s newest feature, Mercury Invoice, provides users with powerful digital invoicing tools. Through the company’s platform, users can generate custom, branded invoices, receive payments through flexible channels, and monitor the status of all invoices. For startups with recurring customers, Mercury also offers features for recurring invoicing and customer payment reminders. 

Mercury Reviews

Mercury has average customer reviews on TrustPilot, earning 3.5 out of five stars. Positive reviews mention the extensive use cases of the Mercury platform, an easy setup, and a quick process to open a business bank account. While Mercury does have negative reviews, many citing slow customer support responses, the company has replied to 76% of those negative reviews with further assistance or insights to resolve remaining issues.

Here are some verified Mercury reviews from Trustpilot by customers who use the platform: 

“Been a mercury customer since the early days after trying out all the big business banks – Chase, Wells Fargo, Silicon Valley Bank, Capital One. Mercury has been the best experience by far. Easy (and free) ACH payments, ability to link multiple accounts even across different businesses entities, and amazing customer service. Don’t bother looking anywhere else. Highly recommended!”

“Mercury is a phenomenal platform to use on a daily basis. Between cost savings and headache reduction I HIGHLY recommend ditching whatever you use now and move to Mercury. I’m CEO of a growing tech startup (for important review context).”

“You’ll really keep waiting for their account approval. They take weeks for approval. Communication is not excellent, but it’s good. I’ve seen reviews where they just shut your account down after approving. I’ve never experienced yet!”

How Does Mercury Bank Compare?

While Mercury is a great startup banking option, it’s important to consider alternatives before signing up. Lili, Novo, and Brex also are popular banking platforms for startups. Each provider offers a unique set of features, benefits, and drawbacks. Here’s how Mercury compares to these business banking services. 

Lili vs. Mercury

Lili and Mercury both offer business banking services with no monthly fees, no minimum balance requirements, and flexible tech features for desktop and mobile devices. Lili offers a 4.15% annual percentage yield (APY) on savings accounts for paid plan customers plus features like early payments, bookkeeping automations, and fee-free ATM withdrawals. However, Lili does charge fees for sending domestic wire transfers as well as sending and receiving international wire transfers. Lili also offers a free basic banking service as well as several affordable plans with enhanced features. 

Novo vs. Mercury

Novo offers small business banking solutions with features for budgeting and invoicing plus no monthly fees or minimum balance requirements. Like Mercury, Novo offers extensive partner perks on top-tier business tools. However, their perks are more limited than Mercury’s offerings. With Novo, businesses can open a business checking account with physical and virtual debit cards as well as gain access to helpful financial management features. 

Brex vs. Mercury

Brex is a startup-focused banking solution built for venture-backed startups. The company’s AI-powered platform boasts extensive features for international businesses and tech-driven companies. Startups can take advantage of Brex’s feature-rich free plan or choose to upgrade to a paid plan to access more robust features, such as live budgeting and dedicated support. A key difference between Mercury and Brex, however, is that Brex doesn’t offer funding opportunities or support like Mercury. 

Below is a table comparing the key services offered by Mercury, Lili, Novo, and Brex.

Features Comparison

Is Mercury Right For Your Startup?

With Mercury, startups gain more than just a checking and savings account. Mercury provides businesses with robust financial tools — from invoicing to bill pay — as well as strong security protections. However, every business’s banking needs are different. It’s important to consider whether or not Mercury is the right fit for your startup’s financial needs. 

It’s particularly well-suited for:

• Startups and high-growth businesses 
• Businesses looking for tech-driven features to enhance their business banking experience 
• Venture-backed startups or startups that plan to raise venture capital 

However, it may not be the best fit if:

• You’re looking for only basic business banking services. 
• You want a banking service with physical branches. 

The bottom line? Mercury offers immense value with banking services that include extensive financial tools, rewards for spending, funding access, and robust security measures to keep your business’s money safe. Plus, Mercury doesn’t charge monthly fees, wire transfer fees, or require a minimum balance to open a business bank account. Overall, we recommend Mercury to startups seeking a banking solution that works to support their business as it scales. 

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