Capital One Business Checking Review 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Ricci Recto has two years of writing experience creating digital marketing content for finance clients. She specializes in business banking.
This article is part of a larger series on Business Banking.
If your small business needs affordable business checking with brick-and-mortar banking access, Capital One is an excellent choice. Its basic account, called Spark Business Basic Checking, offers unlimited fee-free digital transactions for a waivable monthly fee. Businesses with higher cash transaction volumes can upgrade to Spark Business Unlimited Checking, which offers unlimited fee-free digital transactions and cash deposits.
Although Capital One offers free digital banking, you are required to visit a branch to open an account. The bank operates exclusively in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington D.C.
What We Like
- Waivable monthly maintenance fees
- Unlimited fee-free digital transactions
- Five free domestic outgoing wires monthly
What's Missing
- Limited bank branches
- Required to open an account in person
- No annual percentage yield (APY)
- $250 minimum opening deposit
Features
- Free debit card
- Mobile banking
- Online bill pay
- Business cards
- Business savings, lending products, and escrow accounts also available
How Capital One Stacks Up With Its Competitors
Monthly Fee | Monthly Transaction Limit Before Fees | Cash Deposit Fees | Minimum Opening Deposit | |
|---|---|---|---|---|
None | Unlimited digital transactions | $5,000 per month free, then $1 per $1,000 | $250 | |
None | Unlimited digital transactions; 20 paper transactions, then 40 cents per transaction | $5,000 per month free, then $2.50 per $1,000 | None | |
1.5% | 200, then 45 cents per transaction | $7,500 per month free, then $0.30 per $100 | $100 | |
Business Complete Banking
Fundamentals Business BankingWhen Capital One Is a Good Fit
- You need unlimited fee-free transactions: In our list of the best small business checking accounts, we named Capital One the best provider for unlimited everyday transactions because it charges no fees for digital transactions, including online deposits, withdrawals, and transfers.
- Your business works with cash regularly: The Spark Business Basic Checking Account lets you deposit up to $5,000 per month without fees. Upgrading to Spark Business Unlimited Checking gives you unlimited fee-free deposits.
- Your limited liability company (LLC) requires you to travel regularly: The bank issues a Spark Miles for Business card that lets you earn travel rewards. The card has a low annual fee and gives out unlimited 2x miles for all your purchases, which is why we consider it among the best LLC credit cards.
When Capital One Is Not a Good Fit
- You need an interest-earning business checking account: Neither of Capital One’s business checking accounts let you earn interest. We recommend Bluevine, which offers 2.00% APY on qualifying balances worth $250,000 or less.
- You live outside Capital One’s jurisdiction: To open a business checking account with Capital One, you are required to visit one of its branches, which are located exclusively in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington D.C. If you want a bank with more physical branches, look into Chase, which has 4,700 branches in 48 states.
- You want a fee-free business checking account: Capital One requires a minimum deposit of $250 and has monthly maintenance fees—though you can waive them when conditions are met. However, Novo lets you open a basic checking account with no minimum deposit requirement and no monthly fees.
Check out more providers in our list of the best small business checking accounts.
Capital One Business Checking Overview
Spark Business Basic Checking | Spark Business Unlimited Checking | |
|---|---|---|
Required Opening Deposit | $250 | |
Required Minimum Balance | None | |
Transaction Limit Before Fees | Unlimited digital transactions | Unlimited digital transactions |
Monthly Fees | $15; waivable if conditions are met | 35; waivable if conditions are met |
Domestic Wire Transfer Fees | Incoming: Free Outgoing: First five free each month, $25 thereafter | Incoming: Free Outgoing: First five free each month, $25 thereafter |
International Wire Fees | Incoming: $15 Outgoing: $40 for foreign currency; $50 for United States dollars | |
ATM Fees | Free at more than 70,000 Capital One, Allpoint, and MoneyPass ATMs nationwide | Free at more than 70,000 Capital One, Allpoint, and MoneyPass ATMs nationwide |
Cash Deposit Fees | Free up to $5,000 per month; $1 fee for every $1,000 thereafter | None |
APY | None | |
Open an Account | ||
Spark Business Basic Checking and Spark Business Unlimited Checking | |
|---|---|
Debit Card | Free debit card |
Overdraft Protection | Free but requires enrollment |
Business Services | Capital management (Positive Pay), merchant services (Worldpay), escrow express |
Customer Service | For business accounts with access to a branch: 1-888-755-2172, Mondays to Fridays, 8 AM to 8 PM For business accounts with digital access only: 1-844-887-7275, Mondays to Fridays, 8 AM to 8 PM |
Other Products | Business savings, lending products, credit cards |
Open an Account |
Capital One Business Checking Requirements
To open a business bank account with Capital One, you need to visit one of its physical locations. You will be asked to provide the following:
- Personal information (name, date of birth, Social Security number, birthdate)
- Email address and phone number
- US address and owner establishment date (not a P.O. box)
- Legal name of business and type of business
- Business establishment date with signer’s full name
- Tax ID number, ownership structure, number of employees
- Percent of ownership and annual gross revenue
Click on your entity type below for a list of additional requirements.
Corporation
Certified articles of incorporation or certificate of good standing or certificate of incorporation/formation/registration and IRS Form SS-4/ CP 575A or IRS Letter 147C
S Corporation (S-corp)
Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
LLC
Certified articles of incorporation or certificate of formation/registration or certificate of good standing or signed and dated operating agreement and IRS Form SS-4/ CP575A or IRS Letter 147C
Series Limited Liability Company (SLLC)
Operating agreement for the series LLC and certified certificate of formation (Managing LLC) and IRS Form SS-4/ CP575A or IRS Letter 147C
Low-profit LLC
Certified certificate of organization and IRS Form SS-4/ CP575A or IRS Letter 147C
Limited Liability Partnership (LLP)
Signed and dated partnership agreement or certified evidence of registration with secretary of state and IRS Form SS-4/ CP575A or IRS Letter 147C
General Partnership (GP)
Signed and dated partnership agreement or certified evidence of registration with secretary of state and IRS Form SS-4/ CP575A or IRS Letter 147C
Limited Partnership (LP)
Certified certificate of limited partnership (secretary of state) or signed and dated partnership agreement or certified evidence of registration with secretary of state or certified certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
Sole Proprietorship
No additional business documentation required
Unincorporated Association/Club
Certified articles of organization or charter letter from national organization authorizing a local chapter (on organization’s letterhead) or recent meeting minutes (on organization’s letterhead) or signed and dated formal written agreement or by-laws and IRS Form SS-4/ CP575A or IRS Letter 147C
International Business Corporation
Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
Nonprofit Organization
Not-for-profit articles of inc (if incorporated) or recent meeting minutes (on organization’s letterhead) and IRS Form SS-4/ CP575A or IRS Letter 147C and IRS Determination Letter 501(c)(3) or letter of tax-exempt
Trust/Estate
Documents based on entity type and Certificate of Trust
Capital One Business Checking Features
Online & Mobile Banking
Capital One offers digital banking through its website and mobile app. The mobile app lets you
- View balances and export statements
- Check your credit
- Pay bills and loans
- Activate cards
- Redeem rewards
- Send and receive money through Zelle
On Google Play, Capital One earned 4.6 out of 5 stars with more than 1.3 million ratings, whereas on App Store, it garnered 4.9 out of 5 stars with 5.6 million ratings. Satisfied reviewers praised the app for its simplicity and ease of use. However, a few past users complained that the app tends to glitch during update rollouts.
Spark Business Basic Checking
A Spark Business Basic checking account, which has a $250 account opening deposit, provides small business owners with unlimited digital transactions, a debit card, and online bill pay. It comes with a $15 monthly fee that you can waive if you have:
- A $2,000 minimum 30- or 90-day average balance, whichever is greater; or
- Any two or more active, open products that include a small business loan or line of credit, merchant services account, or a Spark business credit card
Spark Business Unlimited Checking
A Spark Business Unlimited checking account is for small business owners with less than $10 million in annual sales revenues and cash deposit needs under $40,0000 per month. It offers fee-free cash deposits, unlimited transactions, debit cards, and online bill pay.
A $250 account opening deposit is required to open an account. It has a $35 monthly fee that you can waive if you have:
- A $25,000 minimum 30- or 90-day average balance, whichever is greater; or
- Any two or more active, open products that include a small business loan or line of credit, Spark ProDeposit, merchant services account, or a Spark business credit card
Opening a Spark Business Unlimited checking account entitles you to two Spark Business Basic checking accounts with no monthly fees—as long as the account remains open and in good standing. If the account is closed, then the monthly service fee for the Spark Business Basic Checking accounts will be applied.
Spark ProDeposit
The Spark ProDeposit service is available only to Spark Business Unlimited Checking account holders. It is a remote deposit service that saves you from bank trips by allowing you to deposit checks using a single feed scanner and/or mobile device. The ProDeposit monthly service fee is $50 and requires a 1-year contract. A free remote deposit capture scanner is provided by Capital One.
Other Capital One Business Products
Business Savings
In our roundup of the best savings accounts for small businesses, we named the Capital One Business Savings Account the best choice for those looking for savings with traditional providers. The account, which has an opening deposit requirement of $250, charges a monthly fee of $3—waivable with a minimum balance of $300. It also offers an introductory APY of 0.20%, which will apply to your entire balance for your first twelve months. After the promotional period, you will earn interest at Capital One’s standard APY rate.
Lending Products
Capital One offers real estate term loans, Small Business Administration (SBA) loans, and lines of credit, all with flexible lending terms. You can use your business checking account to set up automatic loan payments.
- Real Estate Term Loans: If you need to purchase, refinance, or improve properties, you can take Capital One’s Real Estate Term Loans for fixed-term loans worth up to $5,000,000. Term lengths can last as long as 20 years.
- SBA Loans: For longer terms, lower equity requirements, or fixed terms, you can connect with Capital One for SBA 504 and SBA 7(a) loans.
- Lines of Credit: If you need access to working capital, Capital One provides revolving lines of credit worth up to $5,000,000.
Business Cards
Capital One business credit cards feature excellent rewards, such as unlimited cash back, no annual fees, and bonus travel miles. As a business owner, you can request free business credit cards for your employees. This will help you keep track of their business spending, as you can set spending limits and review transactions. You also get an itemized report at the end of the year, helping you plan your budget and prepare for tax season.
Escrow Express
The Capital One Escrow Express sub-account can help you manage risk and ensure due diligence in business transactions. The provider offers three types of Escrow accounts:
- Tenant Security manages tenant security deposits for property managers and landlords
- Attorney Trust manages client funds for attorneys and law firms
- Escrow Standard provides sub-accounting functionality for escrow agents and other businesses
You can access your Escrow Express account through Capital One’s Intellix Platform. The platform lets you pay interest, customize disbursement schedules, submit W9s, and more.
Trade Credit
Capital One offers buy-now-pay-later (BNPL) solutions for B2B relationships. Through these solutions, you can give your clients more time to pay without delaying your access to profits. It’s a great way to improve the predictability of cash flow.
Capital One Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| Free incoming domestic wires for Spark Business Unlimited Checking account | Only available in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington D.C. |
| High cash deposit limits | High wire transfer fees |
| Highly rated mobile app | No interest-earning checking |
With a cash deposit limit of $5,000 for basic accounts and unlimited fee-free cash deposits for higher-tier accounts, Capital One is an excellent fit for cash-reliant businesses. If you upgrade to Spark Business Unlimited Checking, you can also save on wire transfer fees with unlimited free incoming wire transfers and five free outgoing wire transfers monthly.
However, the bank’s physical branches are only available in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington D.C.—and you are required to visit a branch to open an account. Fortunately, it offers a smooth digital banking experience through its website and highly-rated mobile app.
Capital One User Reviews
| PROS | CONS |
|---|---|
| Good mobile app | Customer service |
| Easy online payments | Restricts access to deposits for several days |
| Decent rates | Shrinking branch presence |
Capital One reviews from customers are mixed. Users have given it 1.2 out of 5 on Trustpilot, 3.5 out of 5 on DepositAccounts, and 3.7 out of 5 on WalletHub. Satisfied reviewers mostly praise the bank’s mobile app, which they said is reliable and easy to navigate. A few reported that they’ve had good experiences with the Capital One customer service team, which they noted is helpful and friendly.
However, many said the opposite. Negative reviews mentioned that reaching Capital One’s customer service team takes an overly long time and that resolving issues takes even longer. Many also claimed to have had their accounts locked or restricted for unjust reasons. Additionally, a few customers complained that Capital One takes too long (six to seven business days) to provide access to funds from deposited checks.
Further, customers said that they dislike that Capital One’s branch presence is continually shrinking. Over the past few years, the bank has closed several of its brick-and-mortar stores, inconveniencing customers reliant on in-person services.
Alternatives to Capital One Business Checking
Capital One has two excellent business checking accounts, but they may not suit your business needs. If you want interest-earning potential, nationwide access to in-person banking services, or fee-free banking, you may want to bank elsewhere.
Here are three alternatives to consider:
- Bluevine* is best for earning interest on checking deposits. If you meet its activity requirements, your account can earn 2.00% APY on balances of $250,000 and less.
- Chase is best for nationwide branch access, as it has 4,700 physical branches across 48 states.
- U.S. Bank is best for fee-free traditional banking. Its Silver Business Checking account charges no monthly service fees.
*Bluevine is a business financial technology (fintech) platform backed by Federal Deposit Insurance Corp. (FDIC)-insured Coastal Community Bank.
Bottom Line
The business checking products of Capital One are suitable for business owners who want fee-free unlimited transactions and access to both traditional and online and mobile banking. Depending on your cash deposit transaction volume, you can choose to open a Spark Business Basic or a Spark Business Unlimited checking account.
