Oxygen 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 you’re a freelancer or up-and-coming limited liability company (LLC) owner in need of an affordable business banking solution, the Oxygen mobile app is an excellent option. Through a partnership with The Bancorp Bank, Oxygen offers a business checking account with unlimited fee-free transactions, no opening deposit requirements, no minimum balance requirements, and no monthly fees. The app also comes with an LLC creation feature, which helps upcoming businesses file and submit their LLC forms.
What We Like
- No monthly fees, minimum balance requirements, and automated clearing house (ACH) fees
- Unlimited fee-free transactions
- Cash back program available
- Savings account earns 1% annual percentage yield (APY)
What's Missing
- Mobile-only; no browser version
- Cash back limited to select retailers
- No lending products, overdraft protection, and support for outgoing wire
Features
- LLC creation assistance
- Oxygen Visa Business Debit Card
- Unlimited single-use secured virtual debit cards
- Up to 5% cash back on debit card purchases with select retailers
- Business savings account
How Oxygen Stacks Up With Its Competitors
Monthly Fee | Transaction Limit Before Fees | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
 Oxygen Business Deposit Account | None | Free at Allpoint ATMs; $3 for nonnetwork use* | Up to 5% | $0 |
 Lili Pro | $4.99 | Free at MoneyPass ATMs; $2.50 for nonnetwork* | Varies by merchant | $0 |
 Innovator Business Checking | N/A | Free at MoneyPass and SUM Network ATMs | 1% on qualified purchases | $100 |
*Third-party operator fees may apply.
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (The Bancorp Bank for Oxygen and Piermont Bank for Nearside).
When Oxygen Is a Good Fit
- You’re about to start a business: Its LLC creation feature lets up-and-coming businesses file and submit their LLC applications.
- You want a business checking account with no monthly fees: Its business checking account has no monthly fees and minimum balance requirements.
- You want unlimited fee-free transactions per month: It doesn’t charge fees for ACH transfers, incoming wire transfers, direct deposits, and mobile check deposits.
- You want to earn cash back on debit card purchases: Users can earn up to 5% cash back when making debit card purchases with Oxygen’s partner retailers.
When Oxygen Is Not a Good Fit
- You want access to browser-based banking: Oxygen’s services are only accessible via its Android and iOS mobile apps. A good alternative would be Novo, a small business-focused checking solution available on both mobile and desktop.
- You want cash back on all debit card purchases: It only pays cash back on offers from select retailers. Meanwhile, Grasshopper earns cash back on all qualified purchases. Only returned purchases, unlawful purchases, and purchases of currency, cash or cash equivalents, such as gift cards, cryptocurrency, and loan payments, don’t count as qualified purchases.
- You need support for outgoing wire transfers: It doesn’t let businesses send wire transfers. Relay, which we named the leading solution for wire transfers in our list of the best small business checking accounts, supports international and domestic outgoing wire transfers and charges low fees for both.
- You want access to lending products: It only offers checking and savings accounts, so if you want lending options, we recommend First Internet Bank. It provides a wide range of products, such as SBA lending, commercial lending, lines of credit, and term loans.
If your small business meets one or more of these scenarios, check out our guide to the best small business checking accounts for additional recommendations.
Oxygen Business Checking Overview
Oxygen Business Checking Requirements
The steps for opening a business bank account differ for new businesses―those that want to form an LLC with Oxygen’s LLC creation service―and existing businesses. Click on your business type to view the requirements.
New Businesses
If you want to form an LLC through Oxygen, you must first apply for a Personal Oxygen Account. Download the app and create a mobile login by providing an email address and password.
Then, you can use the LLC creation feature found on the mobile app. Submit your employer identification number (EIN) and let the Oxygen team handle the rest of your formation documents. They’ll notify you of your application outcome within two to four weeks.
Existing Businesses
To create an Oxygen Business Deposit Account, download the app and create a mobile login by providing an email address and password. Then, you’ll then be required to scan your government ID and agree to Oxygen’s terms and conditions. Oxygen will ask you to provide the following information:
- Location of your business
- Your industry
- Your role in the business
The app might also ask you to prepare supporting business documents, which depend on your business entity type. The following documents may be required:
- Articles of incorporation
- Articles of formation
- Articles of organization
- Name registration
- Resolution of authority
- Operating agreement
- Business license
- Certificate of good standing (from a governmental entity)
- 501(c)(3) letter
- Assumed name certificate
Oxygen will notify you of your application results within five business days.
Oxygen Business Checking Features
LLC Creation
New businesses can establish LLCs, S corporations (S-corps), or C corporations (C-corps) through Oxygen’s LLC creation feature (powered by CorpNet). However, to access this service, you must first create a Personal Oxygen Account.
Once done, you can apply for LLC creation. The app will ask you to provide your EIN, and upon submitting relevant information, Oxygen will then help you create and submit your formation documents. All formation documents will be emailed to you.
The application process usually takes two to four weeks, and service fees vary depending on where your business will be located. If your application is rejected, Oxygen will refund all formation and state filing fees paid within three to five days after review.
Oxygen Visa Business Debit Card
Each Business Deposit Account comes with a free Oxygen Visa Business Debit Card, which can be used for fee-free ATM withdrawals at Allpoint locations worldwide. To help keep your card details safe for online purchases, Oxygen lets you create an unlimited number of single-use virtual cards.
Up to 5% Cash Back
The Oxygen business account includes a rewards program that lets you earn cash back when purchasing from specific retailers. Oxygen displays valid retailer options on a dedicated Cash Back page in the app. You’re required to meet a $10 earnings threshold before cashing out rewards. Oxygen will deposit validated rewards directly into your account.
Other Oxygen Business Products
If you’re an active Oxygen business account holder, you can open a free business savings account. The account earns 1% APY on balances of $20,000 and less.
Oxygen Business Checking Pros & Cons
| PROS | CONS |
|---|---|
| No monthly fees, minimum balance requirements, and opening deposit requirements | No browser version |
| Up to 5% cash back on debit card purchases with partner retailers | No overdraft protection |
| 1% APY on savings accounts | No lending products |
With no opening deposit requirements, monthly fees, and minimum balance requirements, Oxygen business checking accounts are easy to open and affordable to maintain. Cash back offers from partner retailers help organizations save money on debit card business expenses, while a 1% APY rate on savings accounts grows excess funds.
However, Oxygen isn’t a good fit for businesses looking for browser-based banking. At present, it only comes in mobile app form. The fintech also doesn’t let businesses spend more money than what’s available in their accounts. Because it has no overdraft protection, it won’t process any payment that exceeds an account’s available balance. Additionally, it lacks lending products.
Alternatives To Oxygen Business Checking
Although Oxygen offers good business checking features for sole proprietors and budding LLCs, it may not meet your business needs. Here are three alternative options to consider:
- Relay* is best for teams. It lets you create up to 20 reserve accounts and 50 debit cards, and with customizable account permissions and spending limits, you can add other users, such as employees and bookkeepers, to your accounts worry-free. Oxygen doesn’t support multi-account creation.
- Bluevine* is best for earning interest on checking deposits as it pays qualified accounts interest at a rate of 2.00% on balances up to and including $250,000. Oxygen only pays interest on savings accounts.
- Novo* is best for free ATM usage. It refunds all ATM fees at the end of each month, giving users the freedom to make transactions at any network of their choice while Oxygen charges a $3 fee for out-of-network ATM usage.
*Providers are fintech platforms backed by and FDIC-insured through a supporting bank partnership (Evolve Bank & Trust for Relay, Coastal Community Bank for Bluevine, and Middlesex Federal Savings for Novo).
Bottom Line
The business checking account of Oxygen is a great option for up-and-coming LLCs and businesses that are just starting out. Its in-app LLC creation services help businesses remove the headache of the incorporation process, while low fees, cash back rewards, and interest on savings accounts increase savings potential. However, because the banking solution is only available in mobile app form, it’s not a good choice for users wanting to conduct banking transactions on their browsers.
