Mercury vs Novo Business Checking 2023: Which Is Best?

If you’re looking to open a business bank account, Mercury and Novo are excellent options. They’re digital-exclusive banking solutions with no monthly maintenance fees and transaction fees and limits. Additionally, both integrate seamlessly with a wide range of popular business software, including Shopify, Stripe, and PayPal.

Mercury is a particularly strong choice for tech startups. It offers a wide range of startup services, such as venture debt, access to investor networks, and read-and-write application programming interface (API) access. Accounts with high balances can also place cash in Mercury’s high annual percentage yield (APY) treasury account.

Meanwhile, Novo’s biggest selling points include rapid access to Stripe funds, unlimited ATM rebates, and unlimited free invoicing. With the Novo Boost feature, funds earned from Stripe are released into your bank account within hours instead of days.

Here’s a summary of what each provider is best for:

Mercury* is best for incorporated startups and tech companies wanting to customize their banking experience through API and access venture debt and investor networks
Novo* is best for businesses needing rapid access to Stripe payments and fee-free ATM usage

For those that prefer a traditional bank, we recommend:

Chase is best for its national availability, easy-to-waive monthly fees, and suite of additional banking products

*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (Evolve Bank & Trust for Mercury and Middlesex Federal Savings for Novo).

Mercury vs Novo Business Checking Quick Comparison

Terms
Features

			SPONSORED Chase has paid for this placement. However, our team of banking experts approved Chase as an appropriate alternative and our content remains 100% editorially independent.
Required Opening Deposit	None	None	None
Required Balance Minimum	None	None	None
Transaction Limit Before Fees	No limit	No limit	20 monthly, then 40 cents per transaction
Automated Clearing House (ACH) Fees	None	None	$25 for first 25 items per month, 15 cents per item above 25 per month, $2.50 return fee
Domestic Wire Transfer Fees	None	None for incoming; cannot send wires domestically	Up to $35 for outbound, up to $15 for inbound
International Wire Transfer Fees	None	Novo partners with Wise to send international wires for a low fee	Up to $50 for outbound, up to $15 for inbound
ATM Fees	None at Allpoint and nonnetwork Third-party operator fees may apply for nonnetwork ATMs ATMs	All fees refunded at the end of the month	$3 per transaction at any non-Chase domestic ATM, plus ATM operator fees; $5 per transaction internationally plus third-party fees
Cash Deposited	None	Offers a workaround via money orders	$2.50 per $1,000 after you deposit $5,000 in a billing cycle
APY	None	None	N/A
Review	Mercury Business Checking review	Novo Business Checking review	Chase Business Complete Banking Review
Open an account	Visit Mercury	Visit Novo	Visit Chase

			SPONSORED Chase has paid for this placement. However, our team of banking experts approved Chase as an appropriate alternative and our content remains 100% editorially independent.
Debit Card	Free virtual debit card; free physical debit card mailed within a few days	Virtual debit card available immediately, one free physical debit card per user	Free debit card, mailed within 10 business days of application approval
Physical Checks	No physical checkwriting abilities	Paper checks can be sent straight from the app	Cost varies depending on type of checks ordered
Accounting Software Integrations	QuickBooks and Xero	QuickBooks and Xero	QuickBooks, FreshBooks, and other leading accounting software
Business Software Integrations	Includes Shopify, Stripe, Zapier, Amazon, and PayPal	Includes AWS, eBay, Etsy, PayPal, Stripe, Shopify, Square, Wise, WooCommerce, and Zapier	BigCommerce
Customer Service	One-on-one support from relationship managers	Live customer support from dedicated professionals	Live customer support online or in bank branch locations
Invoicing Products	Can request payments with invoice attachments through the platform	Free unlimited invoicing	N/A
Other Products Available	High-yield treasury account, venture debt, and corporate credit cards	Limited liability company (LLC) creation	Business savings, certificates of deposit (CD), lending products, credit cards, merchant services, and collection service
Review	Mercury Business Checking review	Novo Business Checking review	Chase Business Complete Banking Review
Open an Account	Visit Mercury	Visit Novo	Visit Chase

When To Use

You want access to high-yield savings products: If your balance exceeds $500,000, you can gain access to Mercury Treasury, a high-yield treasury account that earns competitive APY. Novo does not offer savings products or APY.
You want access to lending products: Mercury offers venture debt term loans and credit cards. Novo does not offer any lending products.
You make wire transfers regularly: Currently, Novo cannot accommodate outgoing domestic wire transfers. It relies on Wise to send and receive international wire transfers. Under Mercury, incoming and outgoing domestic wire transfers are free. Incoming and outgoing international wire transfers are also free—provided that they go through Mercury’s system.

You use Stripe for payment processing: Through a feature called Novo Boost, Novo provides rapid access to Stripe funds. While Stripe typically takes days to release funds into your checking account, Novo Boost gives you access to your funds within hours.
You want to save on ATM fees: Mercury users are limited to Allpoint ATM networks and have to pay third-party operator fees for out-of-network ATM transactions. Because Novo reimburses all ATM fees, Novo users can make fee-free transactions at any ATM network of their choice.
You are a sole proprietor or trust: Mercury cannot open accounts for sole proprietors or trusts. Novo accepts the majority of business entity types.

You want to earn interest on checking balances: Neither Mercury nor Novo offers interest-drawing checking accounts. Bluevine lets accounts earn interest at a rate of 2.00% on qualifying balances of $100,000 or less if you meet its activity requirements. Learn more through our review of Bluevine business checking.
You make cash deposits frequently: Mercury does not support cash deposits, while Novo only allows cash deposits through money orders. A better alternative for affordable cash deposits is Bank of America, which allows up to $7,500 worth of free cash deposits within a single statement cycle. Our Bank of America business checking review can help you determine whether the account is right for you.
You need a wider selection of lending products: Novo does not offer any lending products. Mercury only offers venture debt, which is only available to startups that have raised venture capital within one year of applying for a loan. The digital-only bank First Internet Bank offers lines of credit, term loans, SBA loans, and real estate financing. Read our First Internet Bank business checking review to learn more about the provider’s business checking and banking products.

Mercury vs Novo Business Checking Account

Both Mercury and Novo only offer one type of checking account. Neither charges monthly maintenance fees nor imposes transaction limits. Novo doesn’t support domestic wire transfers and processes international wire transfers through the online money transfer company Wise. Meanwhile, Mercury offers free domestic and international wire transfers.

Neither account allows direct cash deposits. However, Novo users can still deposit cash by purchasing money orders and depositing them through the app.

Mercury vs Novo Business Checking Account Overview

	Mercury	Novo
Best For	Incorporated startups and tech companies wanting to customize their banking experience through API and gain access to venture debt	Businesses needing rapid access to Stripe funds and fee-free ATM usage
Opening Deposit	None
Minimum Balance	None
Interest on Balances	None
Bank Network & ATMs	Free at Allpoint locations; no fee for nonnetwork ATMs	All fees refunded at the end of the month
Accounting Software Integrations	QuickBooks and Xero
Business Software Integrations	Includes Shopify, Stripe, Zapier, Amazon, and PayPal	Includes Stripe, Square, PayPal, Wise, and Shopify
Reserve Accounts	Up to 14	Up to 10
Interest-earning Accounts	Mercury Treasury	None

Who Qualifies?

Neither account has an opening deposit requirement. Mercury doesn’t serve sole proprietorships or trusts, whereas Novo serves sole proprietorships, limited liability companies (LLCs), corporations, general partnerships, and non-profit organizations.

Cost-saving Benefits

If your Mercury checking account balance exceeds $500,000, you can qualify for Mercury Treasury. Mercury Treasury places your cash into mutual funds and other investment products, letting you earn competitive APY.

Additionally, Mercury gives you a $300 cash back bonus if you spend $2,000 on your debit or credit card within the first 90 days of account opening. Its credit card also earns 1.50% unlimited cash back.

Meanwhile, Novo helps you save by providing unlimited ATM reimbursements. This means that you can make unlimited free ATM transactions at any network of your choice.

Business Tools

One of Mercury’s most unique features is that it provides read and write API access. This allows users to customize their banking solutions according to their needs, such as automating mass payments and creating custom dashboards and sweep rules.

In our list of the best small business checking accounts, we named Novo the best provider for rapid access to business funds. Its Novo Boost feature speeds up cash flow by giving you access to funds earned from the payment processing platform Stripe within hours instead of days.

Novo also provides an invoicing tool that lets you create unlimited custom invoices for free. You can connect this tool to Stripe, Square, and PayPal, and accept payments via card, ACH, Venmo, Google Pay, Apple Pay, and more.

Although Mercury doesn’t have an invoice creation tool, it allows you to attach invoice files and send them to clients directly from the platform.

Integrations

Both Mercury and Novo offer numerous business software integrations, including popular accounting software QuickBooks and Xero and business payment solutions PayPal, Square, Stripe, and Shopify. Mercury also integrates with Zapier and Amazon, while Novo integrates with Wise for wire transfers.

Lending Products

Novo doesn’t offer any lending products. Meanwhile, you’re eligible to apply for Mercury Venture Debt if you have raised venture capital within the past year. Mercury also offers the IO Mastercard, a corporate credit card that charges no annual fee and earns 1.50% cash back. You can learn more about this card’s fees and rewards through our Mercury IO Mastercard review.

Perks

Both Mercury and Novo offer discounts on popular business tools, including QuickBooks, Gusto, and HubSpot. However, Mercury offers a wider selection of deals compared to Novo.

Reserve Accounts

Mercury users can create up to 14 subaccounts with their main account, whereas Novo users can make up to 10 reserve accounts through Novo Reserves.

Investor Community

The Mercury website has an investor database that lists seed and pre-seed investors with their contact details and lists of their preferred industries. You can access this database even if you don’t have an account.

Additionally, Mercury has a program called Mercury Raise, which gives business owners the chance to get introduced to top investors.

Novo doesn’t have resources that help startups look for investors.

Security

Both Mercury and Novo protect your money using standard, bank-level encryption and provide FDIC insurance for checking deposits through their partner banks (Evolve Bank & Trust for Mercury and Middlesex Federal Savings for Novo). Mercury Treasury funds are protected through SIPC insurance.

Additionally, both use multifactor authentication (MFA) to protect your accounts from unauthorized access. Mercury includes automated fraud monitoring while Novo offers fraud alerts for suspicious activity.

Mercury vs Novo User Reviews


Trustpilot Rating	3.7 out of 5 stars (based on 500-plus reviews)	4 out of 5 stars (based on 1,800-plus reviews)
Users Like	Clean interface Minimal fees	Intuitive user experience (UX) Minimal fees
Users Don’t Like	Slow response time from customer service Lack of transparency when rejecting applicants Unjust account closures	Slow response time from customer service Rejects check deposits without explanation

On the review platform Trustpilot, Novo has a better rating than Mercury. It received a rating of 4 out of 5, based on 1,800-plus reviews. Mercury was rated 3.7, from 500-plus reviews.

They were praised for having an easy-to-navigate user interface (UI) and charging minimal fees. However, both were criticized for having slow customer service response times. Neither offers customer service via telephone, which many customers found inconvenient.

Most of Mercury’s negative feedback came from applicants who were unable to open accounts or past clients who had their accounts closed for allegedly unjust reasons. Unsuccessful applicants complained that the process was overly thorough and that they weren’t given any sufficient explanation for their rejection. Meanwhile, reviewers who had their accounts closed complained that they weren’t provided sufficient explanations for their closures.

Novo received a similar complaint regarding its check deposits. Several clients complained that Novo had rejected their check deposits without due reasoning. Novo requires a specific signature for its check deposits, which meant that customers with denied checks had difficulty depositing their checks elsewhere.

Bottom Line

The choice between Mercury and Novo is a matter of scale. With features like treasury accounts, venture debt, and access to investor networks, Mercury is most suitable for tech startups wanting access to services that either help them scale or reward them for growth. If you don’t need Mercury’s startup-focused services, Novo is an excellent choice. Its unlimited ATM rebates help you save on fees, while Novo Boost reduces cash flow friction.

Once you’ve decided, see our guide on how to open a business bank account to find out what documents you need to prepare.