Kabbage Business Checking Review 2022
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.
This article is part of a larger series on Business Banking.
If your business has an existing relationship with American Express or a line of credit through Kabbage Lending, opening a checking account through Kabbage makes good business sense. In partnership with Green Dot Bank, Kabbage banking charges no monthly fees and only transaction fees on teller cash withdrawals or foreign transactions. You can earn up to 1.1% APY on balances up to $100,000.
However, if you don’t have an existing Amex or Kabbage business relationship and are looking for an online business banking account, you should consider BlueVine instead. BlueVine has a higher APY (1.5%), better software integration, a larger free-ATM network, and free checks.
Kabbage
What We Like
- No setup or monthly maintenance fees and minimum balance requirement
- Access to apply for a line of credit through Kabbage lending
- Access to payment and invoice services through Kabbage Payments
- High interest rate for qualified accounts
What's Missing
- Fee for cash deposits
- Smaller free ATM network than competitors like BlueVine
- Checks are not free and must be ordered directly from Kabbage
- Lack of software integration, such as QuickBooks and Xero
Features
- Free debit card mailed within five to seven business days; virtual card available until physical card arrives
- Access to Kabbage Funding and Kabbage Payments, if qualified
- Mobile deposit of checks available once an initial ACH is deposited into the account and identity verification is completed
- Connects with third-party payment software like Venmo
- Access to Kabbage Reserves to set aside for large expenses or tax purposes
- Phone and email customer service available during weekday business hours
How Kabbage Stacks Up With Its Competitors
Annual Percentage Yield (APY) | Cash Deposit Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 | 1.1% APY on balances up to $100,000 | $4.95/deposit; accepted at Green Dot locations | No fees at 19,000 in-network ATMs | None |
 | 1.5% on balances up to $100,000 | $4.95/deposit; accepted at Green Dot locations | No fees at 38,000+ MoneyPass ATMs nationwide | None |
 | N/A | None; cash is deposited through money orders | Refunds all ATM fees | $50 |
*Providers are financial technology (fintech) platforms-backed and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Green Dot Bank for Kabbage; Coastal Community Bank for BlueVine and Middlesex Federal Savings for Novo).
When Kabbage Is a Good Fit
- Small businesses looking for an online-only bank that doesn’t have a physical location.
- Companies that don’t deposit cash regularly into their account due to the deposit fees of up to $4.95 per transaction.
- Businesses looking for an online checking account that doesn’t charge monthly fees and only charges transaction fees on teller cash withdrawals and international transactions.
- Companies with an existing relationship with American Express or Kabbage Lending looking to add small business checking to their Kabbage account.
- Businesses that might need a business line of credit or invoice and payment tools in addition to a checking account, as Kabbage has both lending and payment services.
- Companies looking to separate business income within their checking accounts, as Kabbage provides up to five reserve accounts.
When Kabbage Isn’t a Good Fit
While Kabbage offers a solid business checking product, it might not be the best fit for your business. You might consider an alternative for Kabbage business checking in the following situations:
- If you need to deposit cash regularly into your account as Green Dot retail locations charge up to $4.95 per deposit. You might consider a banking provider with a physical location, such as Bank of America, Chase, and U.S. Bank.
- If you need to deposit large amounts of cash daily into your account as there’s a limit of $5,000 per day with Kabbage. Check out our list of the best small business checking accounts for alternatives with no daily cash limit.
- If you’re unable to stay in Kabbage’s ATM network regularly. While Kabbage doesn’t charge for out-of-network ATM transactions, operator fees will apply and aren’t refunded as they’re with Novo.
- If you need integration with financial software such as QuickBooks and Xero. BlueVine provides those integrations, along with a larger fee-free ATM network.
- If you have a business that writes physical checks frequently as Kabbage charges for checkbooks. BlueVine allows for two free checkbook orders per year.
Kabbage Business Checking Overview
Required Opening Deposit | None |
Required Balance Minimum | None |
Transaction Limit Before Fees | No limit |
Automated Clearing House (ACH) Fees | None |
Wire Transfer Fees | $25 for outgoing domestic wire |
Teller Cash Withdrawal Fee | $3.00 per transaction |
Foreign Transaction Fee | 3% of total transaction amount (in addition to a potential teller cash withdrawal fee) |
ATM Fees | No charge for out-of-network ATMs. However, operator fees apply—free access to in-network ATMs (19,000 locations). |
Check Fees | $20 for 100 personal-sized checks $125 for 250 business-sized checks |
Cash Deposits | $4.95 at Green Dot retail locations; maximum of $5,000 per day |
APY | 1.1% on balances up to $100,000 aggregate (main account and reserves combined) |
Kabbage Business Checking Requirements
To open a checking account through Kabbage, you have to be a Kabbage customer first. If you aren’t, open a Kabbage account, then apply for checking. If you have an existing American Express login, you can use that to create your Kabbage account.
If you have a sole proprietorship, a partnership, or a limited liability company (LLC), you can open a Kabbage checking account. Click the tabs below to show the documents required to open an account with your specific business type.
Kabbage Business Checking Features
Kabbage’s free business checking account comes with several features that can benefit your small business.
Interest-bearing Checking
Kabbage offers 1.1% APY on checking account balances up to $100,000. While this is a lower APY than BlueVine’s 1.5%, it doesn’t come with the same requirements as BlueVine’s to qualify for it.
However, Kabbage does combine the balances of your main checking account with any balances in reserve accounts when calculating the maximum amount of $100,000. If you close a reserve account in the middle of the month, the interest earned in that month is forfeited.
Physical & Virtual Debit Cards
A virtual debit card is available once your account is opened and can be used until your physical card arrives. Once the physical card arrives, the virtual card expires.
It’s important to note that if you own a larger business and provide debit cards to multiple employees for purchases, Kabbage only issues one debit card per checking account.
Kabbage Lending & Kabbage Payments
If your business qualifies, Kabbage offers access to both lending products and payment and invoicing products. Kabbage Lending offers a line of credit product for companies that have 1) been in operation for at least one year; 2) at least a 640 credit score; and 3) at least $50,000 in annual revenue. Kabbage is one of our top choices for the best cash flow loans and the best easy business loans.
It also offers Kabbage Payments, which allows you to send customized invoices and create custom pay link URLs to accept online credit card payments. This product is currently waitlisted, but you can join that waitlist through the company’s website.
Reserve Accounts
Kabbage offers up to five reserve accounts, which allows you to separate business finances within your checking account. It enables you to put aside money for large expenses or upcoming tax bills. The combined balances of your main account and all reserve accounts count toward the overall amount of interest-drawing money in your account, which maxes out at $100,000.
Mobile App
The Kabbage mobile app allows you to access banking, lending, and payments services on the go. You can also get a map of in-network ATMs through the app, allowing you to avoid third-party, out-of-network ATM fees.
You can deposit checks directly through the app, although it can take up to five business days for the check to clear into your account. In addition, you have to make an initial ACH deposit into your account and go through identity verification before you can use mobile check deposit.
Kabbage Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| No minimum deposit to open an account and no minimum balance required | Fee for cash deposit and check orders |
| Access to credit and invoicing products through Kabbage (pending approval) | Smaller free ATM network than competitors like BlueVine |
| High interest rate for qualified accounts | Lack of software integration (such as QuickBooks and Xero) |
Kabbage offers a great online, small business checking account with no minimum deposit or balance requirements, access to great Kabbage lending and payment products, and a high interest rate on balances up to $100,000.
However, that rate is smaller than BlueVine’s business checking, the fees on cash deposits and check orders are high, the free-ATM network is smaller than other competitors, and there’s a lack of software integration.
Kabbage’s app is available on both the Apple App Store and Google Play Store. It has a rating of 4.9 stars out of 5 on the App Store out of over 8,300 ratings, while it has 3.8 stars out of 5 on Google Play with about 510 ratings.
Those who left a positive Kabbage business checking review said they liked the ability to access accounts on the go on the mobile app, while those who left a negative Kabbage review had issues with the check deposit feature and customer support through the app.
Alternatives to Kabbage Business Checking
While Kabbage offers a solid checking product, it might not be the best checking account for your small business. If you need to deposit cash or write checks regularly, want a higher APY on your balances, need a physical location, or need other lending products, you may want to consider an alternative bank.
Here are three alternative options to consider:
- Chase: Best for businesses that make regular cash deposits, want a full-service bank with physical locations, or need other banking services.
- BlueVine: Similar to Kabbage in many ways. However, when comparing BlueVine vs Kabbage head-to-head, BlueVine has the edge with a higher APY, better software integration, more fee-free ATMs, and a better line of credit product.
- Live Oak Bank: Best for interest-drawing savings or certificates of deposits (CDs) or companies looking for Small Business Administration (SBA) or other commercial loans for their business.
Bottom Line
Kabbage offers a very good, online-only small business checking account. If you’re an existing American Express customer or have used Kabbage for lending products, you should consider Kabbage’s checking account. It offers a very good APY, no minimum balance or opening deposit requirements, a solid mobile app, and potential access to lending and payment services. However, if you have frequent cash deposits, write a lot of physical checks, or aren’t an existing Kabbage customer, you’ll find alternatives listed above that have fewer fees, better software integration, and higher interest rates.
