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Updated November 23, 2020 2:58 PM PT

Best Bank for Small Business

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The right bank account can make or break your business. Narrow down your options and find the best fit with this guide.

Being your own boss is tough but it's rewarding to build something of your own. And as a small business owner, the last thing you need is a bank eating into profits.

The best business checking accounts offer low fees/minimum balance, and a personal relationship.

But they're not one-size-fits-all. Restaurants need to deposit cash at a physical branch. While a tech startup may prefer an online bank.

Take a look our list of the best banks to open a business account.

Here are the best banks for small businesses:

What Kind of Bank to Choose

The first step is to decide what kind of bank you want to use for your small business. There are three main types:

  • National bank: These are the big banks with a lot of branches and ATMs throughout the nation. They're more convenient and usually offer more services and products. This could be a good choice for more established businesses.

  • Local bank: Even though our list focuses more on the bigger banks, micro local businesses may benefit more from a local bank or credit union. A smaller bank is more likely to work with your needs and take a greater interest in helping local businesses grow.

  • Online bank: This option is good for purely online businesses or freelancers who don't need cash deposits. Online banks often offer higher interest rates and have less fees and requirements.

What kind of bank do you want to use for your small business?

Best Banks for Small Businesses

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Not only do business accounts serve as places to keep business funds, the right bank can also provide services to help you reach your business goals.

Here are the top picks for small business bank accounts, as well as any pros and cons to consider.

Wells Fargo: Best Overall Business Services

Wells Fargo is one of the "big four" banks in the nation with $2 trillion in assets. It has over 5,000 branches across the country.

We like Wells Fargo as the overall best bank for small business because of its comprehensive offerings. It's a good choice if you want everything in one place.

Wells Fargo offers a wide range of business banking services:

  • Four business accounts for different checking needs
  • Full-service payroll features and employee benefits
  • Customized merchant processing options
  • Tax programs
  • Business credit cards
  • Various business loan options
  • Secured and unsecured lines of credit
  • Small business insurance

Recommended: Initiate Business Checking Account
This is one of the best checking accounts from a big bank. The Wells Fargo Initiate business account is ideal for growing small businesses. It's pretty easy to waive the monthly fee. The opening minimum deposit is just $25.

  • 100 free transactions per month ($0.50/item after that)
  • $5,000 in free cash deposits per month
  • Free text and mobile banking
  • Custom cards and checks
  • Zero Liability protection

There are two ways to waive the $10 monthly maintenance fee:

  • Maintain a $500 minimum daily balance, OR
  • Maintain a $1,000 average ledger balance

Chase: Best for Small Business Credit Cards

Chase Bank is another large national bank offering a variety of services for small businesses. It has over 16,000 ATMs and more than 4,700 physical locations. As one of the most popular card issuers, it's especially known for its excellent credit cards for small business.

Chase Bank offers business solutions including:

  • Business checking accounts
  • Business credit cards
  • Business lending; term loan starting from $5,000
  • Lines of credit starting from $10,000
  • Commercial real estate loans
  • Merchant services
  • SBA 7(a), SBA 504, and SBA Express loans

Chase is known for a great mobile app and excellent 24/7 customer service with real reps.

Chase often offers a sign-up bonus to new account holders for opening new business bank accounts, so make sure you check out the current promotions.

    Chase

    Introducing Chase Business Complete Banking℠

    • Earn $300 when you open a new Chase Business Complete Checking account. For new Chase business checking customers with qualifying activities.
    • More ways to waive fees. Multiple options to waive the Monthly Service Fee, including maintaining a minimum daily balance or purchases on your Chase Ink® Business credit card
    • Convenient access to payment processing. Accept card payments virtually anytime and anywhere, with QuickAccept.
    • Same-day deposits with QuickAccept. Free up the cash you need to keep your business moving forward at no additional cost.
    • Alerts to help you stay on top of your account activity.
    • Easy account management through Chase Business online and the Chase Mobile® app.
    • Unlimited electronic deposits, ACH and Chase Quick Deposit℠.
    • Convenient access to 16,000 ATMs and more than 4,700 branches.

Chase Business Credit Cards
Chase is known for their excellent credit cards with huge bonuses, both personal and business. Some of their most popular cards include:

Ink Business Preferred Credit Card
Apply for Ink Business Preferred Credit Card
At Chase's Secure Site
  • New Offer! Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when redeemed through Chase Ultimate Rewards®
  • Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year
  • Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn
  • Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards
  • Redeem points for travel, cash back, gift cards and more - your points don't expire as long as your account is open
  • No foreign transaction fees
  • Employee cards at no additional cost
  • $95 Annual Fee
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
N/AN/A
15.99% - 20.99% Variable
$95

Ink Business Cash Credit Card
Apply for Ink Business Cash Credit Card
At Chase's Secure Site
  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
  • Earn 1% cash back on all other card purchases with no limit to the amount you can earn
  • 0% introductory APR for 12 months on purchases
  • Employee cards at no additional cost
  • No Annual Fee
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0

Ink Business Unlimited Credit Card
Apply for Ink Business Unlimited Credit Card
At Chase's Secure Site
  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn unlimited 1.5% cash back on every purchase made for your business
  • 0% introductory APR for 12 months on purchases
  • Employee cards at no additional cost
  • No Annual Fee
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0

Read our detailed comparison guide on the differences between the Chase Ink cards.

Be sure to read up on the Chase credit card application rules before you apply.

Bank of America: Best Low-Cost Small Business Checking

Bank of America is one of the largest physical banks in the United States. This is a good option if you're looking for a bank with lots of branches and ATMs. Bank of America offers:

  • Business checking and savings products
  • Business credit cards
  • Small business financing, including equipment loans, real estate loans, vehicle loans and SBA loans
  • Secured and unsecured lines of credit
  • Credit card processing solutions
  • Payroll processing

While digital solutions are important to the convenience of today's bank customers, there is still need for the human touch. The best organizations can balance between digital and human-to-human interactions to create the strongest customer relationships.

Shep Hyken, customer service/experience expert, keynote speaker and New York Times bestselling author

Recommended: Business Fundamentals Checking
Out of the 2 BofA checking account options, this is the best account for small businesses. It's easy to waive the monthly fee and it offers a decent number of free transactions and deposits.

  • 200 free transactions per month ($0.45/item after that)
  • $7,500 in free cash deposits each month
  • Free online and mobile banking
  • Free online bill pay and mobile check deposit
  • Business and employee debit cards
  • Business Investment Savings account for no additional monthly fee

Bank of America also offers built-in budgeting tools on their mobile banking app, to help you keep track of your expenses and spending.

Several ways to avoid the $16 monthly service charge include:

  • Spend $250 in new net purchases on a business credit or debit card.
  • Maintain a $5,000 average monthly balance.
  • Maintain a $3,000 daily balance.
  • Enroll in the Business Advantage Relationship Rewards program.

US Bank: Best National Bank With No Monthly Fees

If you're looking for a free account at a big financial institution, US Bank is one of the few large brick-and-mortar banks with a no-fee business checking option. US Bank has large branch network of over 3,000 physical branches across the United States.

U.S. Bank offers:

  • Five business checking options
  • Business savings, CDs, and money market accounts
  • Business credit cards
  • Small business loans, including SBA loans
  • Various lines of credit, including business equity and invoice financing
  • Payment solutions, cash management tools, and payroll services

Recommended: Silver Business Checking Package
This checking account has no monthly service charges or account minimum balance. It's ideal for new small businesses and start ups looking to save money on bank fees.

  • 150 transactions per month ($0.50/item after that)
  • 25 free cash deposit units each month
  • 50% discount on first check order up to $50
  • No fee at non-US Bank ATMs
  • Mobile check deposits and online bill payments
  • Protect against overdrafts with a Business Reserve Line

Capital One: Best for High Volume Businesses

For businesses with a lot of transactions, Capital One is worth looking into. Its checking options allow for an unlimited number of transactions for no additional fees. Capital One offers business services such as:

  • Business checking and savings accounts
  • Small business credit cards
  • Small business loans and lines of credit
  • Merchant services through Worldpay
  • Cash flow management solutions
  • SBA 7(a) & SBA 504 Loans

Recommended: Spark Business Basic Checking
This simple business checking account offers an affordable solution for businesses with high transaction volume. The minimum opening deposit is $250.

  • Unlimited transactions at no charge
  • $5,000 in cash deposits per month ($1 for every $1,000 deposited after that)
  • Free business debit card
  • Free online banking and bill payments
  • Free Overdraft Protection with a linked small business deposit account

The Spark Business Basic Checking has a $15 monthly maintenance fee that can be waived if you average a $2,000 minimum balance in the prior 30 or 90 days.

Capital One offers 2 Spark checking options: Basic and Unlimited. The main difference is that the Spark Business Unlimited account has no fee for cash deposits and offers a few free wires each month. And it has a higher minimum balance requirement.

However, Capital One only has about 750 locations and 2,000 ATMs in the entire United States. So you may have trouble finding a branch near you.

BBVA USA: Best for Cash Deposits

BBVA is one of the best banks for small businesses that deal with a lot of cash. It also offers other business services including:

  • Several business checking and savings accounts
  • Small business credit cards
  • Small business lending, including SBA loans
  • Secured and unsecured lines of credit
  • Payment processing services
  • Specialty accounts for certain industries and non-profit
  • SBA 7(a) and SBA 504 loans

Recommended: BBVA Business Choice Checking
This account offers a high cash deposit allowance with reasonable requirements to waive monthly fees. A standout feature is that you can build a customized account for your needs. You can pick two 2 premium features to suit your business:

  • Additional 250 free transactions every month
  • Additional $5,000 per month in cash processing
  • One free wire each month
  • One overdraft fee forgiveness refund per year
  • Unlimited returned deposit items each month at no additional charge
  • 50% discounted checks

Other account features include:

  • Pick two premium features - no additional fees
  • 250 transactions per month ($0.50/item after that)
  • $10,000 in free cash processing per month
  • Three free customized business Visa cards
  • Free unlimited online bill payments
  • Free online banking and mobile banking
  • $100 minimum opening deposit

The $15 monthly service fee can be waived by one of the following each statement period:

  • Maintain a $5,000 average daily balance
  • Process at least $5,000 a month through Merchant Services
  • Enroll in the BBVA For Your Cause Program

The downside is that BBVA only has branch locations in AL, AZ, CA, CO, FL, NM, TX. If you need to deposit cash, make sure there's a branch near you.

Azlo: Best for Small E-Commerce Businesses

Azlo is an online-only bank specifically for freelancers and entrepreneurs. If you don't need to visit a physical bank, you can keep your business banking affordable by considering online banks. Azlo has backing from BBVA and is under FDIC insurance.

Recommended: The Small Business Checking Account
This account has no checking account fees whatsoever. There are also no monthly maintenance fees or minimum balance required. It's as close to truly free as you can get.

One of the biggest advantages is that you get unlimited transactions per month - all free. So it's ideal if you do contract work or pay employees. You can pay others with digital checks or send invoices to clients directly from your account.

You also get surcharge-free ATM withdrawals at 55,000+ ATMs in the Allpoint ATM network. If you use an ATM outside the network, Azlo won't charge you, but it won't provide ATM fee reimbursement charged by the owner.

Other banking features include:

  • Free domestic bank-to-bank transfers
  • Free Visa card
  • No foreign transaction fees
  • No fee for incoming wires
  • No fee for stop payments
  • Mobile check deposit and online bill pay

You can also seamlessly integrate your Stripe, Square, and PayPal payment system, so it's great for e-commerce businesses. Azlo plans to add additional providers in the future.

Note that Azlo can only send and receive digital payments and money transfers. For these reasons, it's not ideal for businesses that deal in cash because it can't accept cash deposits.

The Azlo Bank business account does have a few downsides:

  • No small business lending
  • No business credit cards
  • No cash deposits or check writing

Consumers Credit Union: Best Credit Union Option

Consider a credit union if you don't like the idea of a big bank. Credit unions are often more affordable and have relationship managers that offer more personalized service.

We picked Consumers Credit Union as the top choice for small business owners because anyone can be eligible to join. You don't have to live or work in a certain region or industry. In addition, it offers great businesses services, such as:

  • Multiple business checking accounts (including a free checking and one for non-profits)
  • No minimum balance for Business Savings account if you have a business checking account
  • Small business loans, equipment financing, and lines of credit
  • Merchant services through First Data

Who can become members of Consumers Credit Union?
Anyone can join by simply becoming a member of the Consumers Cooperative Association for a one-time $5.00 membership fee.

Recommended: Freedom Checking
This basic business checking account has no monthly maintenance fees or minimum balance requirements. It's ideal for very new businesses with low activity.

  • 100 free transaction items per month
  • Free Visa business card
  • Free online banking

Axos Bank: Best Business Interest Checking Account

Your choices are rather limited if you're looking for a business interest checking account. It's best to look to online banks in this case. Axos Bank is one of the few small business bank accounts that offer interest yields.

Axos Bank offers business checking and business savings accounts with interest on all balances, so you can grow your money a little.

Recommended: Axos Business Interest Checking Account
The APY isn't the highest, but it still beats out interest rates offered by traditional big banks.

You get a very low number of free items each month, so this simple business account may be best for freelancer-type folks who only need a place to receive their earnings.

  • $100 minimum opening deposit
  • 50 transaction items per month ($0.50/item after that)
  • Unlimited domestic ATM fee reimbursements
  • Up to 60 remote check deposit items monthly
  • First set of 50 checks free

You can waive the $10 monthly maintenance fee by maintaining a $5,000 minimum average daily balance.

Axos Bank also offers a Basic Business Checking account with no monthly service fees or minimum balance requirements. However, that account does not offer APY.

TD Bank: Best for East Coast

TD Bank has a large footprint on the East Coast with 1,300 locations. It's known for extended banking hours and 24/7 customer service, so it's a great option if you live in a location served by TD Bank.

TD Bank offers these business banking services:

  • Checking and savings accounts
  • TD Business Solutions Credit Card
  • Loans and lines of credit

Recommended: TD Business Convenience Checking Plus
This is the mid-tier checking account. The minimum deposit to open is just $100. Features include:

  • 500 free items per month ($0.50 per item after that)
  • $5,000 in free cash deposits per month
  • Mobile check deposits
  • Online bill pay

The $25 monthly maintenance charge can be waived by maintaining a minimum balance of $1,500 (can be combined with a TD personal checking account).

Other Small Business Banking Accounts to Consider

Here are some other good options if none of the ones above fit your needs.

Huntington Bank
Offers three business checking tiers depending on the size of your business, including a free product with no minimum balance. All accounts come with a suite of digital tools to help you manage income, expenses, and forecast cash flow. This bank has a large presence in the Midwest.

    Huntington

    Business Checking Account - $200 Bonus

    Open a new Huntington Business Checking 100 and make a minimum cumulative new money deposit into the new checking account of at least $2,000 within 60 days of account opening. Account must maintain an open status for at least 90 days to be eligible. This offer is only available to applicants residing in Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, or West Virginia. Not available in Wisconsin.

    Expires 1/7/2021
    Huntington

    Business Checking Account - $400 Bonus

    Open a new Huntington Unlimited Business Checking, Unlimited Plus Business Checking, Business Analyzed Checking, Non-Profit Analyzed Checking, or Non-Profit Interest Checking account. Make a minimum cumulative new money deposit into the new checking account of at least $5,000 within 60 days of account opening. Account must maintain an open status for at least 90 days to be eligible. This offer is only available to applicants residing in Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, or West Virginia. Not available in Wisconsin.

    Expires 1/7/2021
    Huntington

    Business Checking Account - $750 Bonus

    Open a new Huntington Unlimited Plus Business Checking, Business Analyzed Checking, or Non-Profit Analyzed Checking account using offer code. Make a minimum cumulative new money deposit into the new checking account of at least $20,000 within 60 days of account opening. Account must maintain an open status for at least 90 days to be eligible. This offer is only available to applicants residing in Illinois, Indiana, Kentucky, Michigan, Ohio, Pennsylvania, or West Virginia. Not available in Wisconsin.

    Expires 1/7/2021

Navy Federal Credit Union
Offers various checking, savings, and business CDs. Also has a basic checking with no monthly fees. However, membership is only open to those in the armed forces or DoD, veterans, or family members.

Radius Bank
Radius is online-only bank offering an array of small business banking solutions. The Tailored Checking account includes perks like 1% cash back, free ATM access world wide, and unlimited transactions.

Novo
Novo is another online business bank built for small entrepreneurs, individuals, and startups. There is no monthly service fees, and it refunds ATM fees from everywhere. It integrates with other small business tools like Stripe, Xero, and Slack.

BlueVine
BlueVine is an online lender that provides easy and fast financing and lines of credit to small businesses. It recently launched a new excellent business checking account with no monthly service fee, no minimum deposit or balance.

It offers unlimited free transactions and interest on balances up to $100,000. There are no ATM fees at 38,000+ MoneyPass ATMs.

Why Have a Business Bank Account

All professional businesses, no matter the size or field, should have a separate business account. Not only does it make you look more legit, it'll also make your life easier when it's time to pay taxes.

It's an important practice to keep personal and business expenses separate. This keeps your accounting clean and leaves a clear record for the IRS. Even a side hustle will require you to pay income tax.

Having a separate business bank account will also allow you to perform daily operations, such as pay bills, write checks, purchase items, and pay employees and vendors from your business account.

In fact, a business bank account is necessary if you plan to fill out business lending applications in the future.

How to Choose the Right Bank for Your Business

When choosing the best business bank account for your needs, think about what perk or features you'd like. Consider these things:

Fees and account balance requirements
What is the initial deposit? In addition, many banks have a minimum balance requirement to waive the monthly service fee. Can your business comfortably meet that requirement?

You may also want to see if you can set up multiple accounts. For example, you may want a separate account to hold sales taxes collected and payroll taxes until it's time to file them.

Transaction limits
How many transactions do you expect each month? Pay attention to the maximum number of free monthly transactions you get, and the transaction fee for each one beyond that. High volume businesses will want an account with unlimited or higher number of transactions.

Transaction items include debits, credits, ACH bank transfer, and deposit checks.

Cash deposit
Do you need to deposit cash payments? If your business deposits large amounts of cash, its best to look for an account that allows for a higher amount of free cash deposits. Take note of the cash deposit fees over the free limit.

Size of bank
Large national banks are more convenient and may have more options. On the other hand, small business banks or local credit unions offer more personalized service, and may be able to get you get a better deal on a loan or aid you financially if something happens.

One of the best resources for entrepreneurs is the Small Business Development Center. This nonprofit organization can help you with marketing, loans and more.

Availability
Are you the kind to bank in person? Does your bank have physical locations and ATM access near your area of business? If you make a lot of deposits and withdrawals, you may want the convenience of a physical branch.

If you're okay with a completely online banking experience, then going with an online bank can help you save. Online banks have less overhead costs so they often have less fees. You can bank from anywhere on your mobile device.

Additional banking services and benefits
Will you potentially want a small business loan in the future? Or payment services and employee programs? If so, look for a bank that offers a spectrum of services to small business owners. Otherwise, you may have to move banks in the future if you get a loan from another bank.

Having a personal relationship with someone at your bank may help you obtain these resources (for example, getting a loan with a better interest rate).

Additionally, check that your bank is a lender for SBA loans (Small Business Administration loans). These federally subsidized loans give financing opportunity to businesses that cannot get a traditional bank loan.

Software Integration
If your small business uses accounting software like QuickBooks or other alternatives, consider whether they will integrate with your new checking account. This matters because it could make your life easier.

Types of accounts
Do you want to handle your business and personal finances under one roof? If you do, look for bank that also offers personal checking and savings accounts, as well as business accounts.

Customer support
Will you be able to get help from a real person when you have a problem? Always do your research on potential banks. Read other customers' bank reviews to get an idea of how good the customer service is.

Introductory Offers
Does the bank offer a signup bonus for opening an account? For example, Chase has a great small business credit card for rewards.

How to Build a Business Banking Relationship

Building a strong banking relationship can go a long way in helping your business grow. A good relationship can help you obtain a line of credit, loan, or other services when you need it.

Here are some tips to building a good relationship.

  • Get to know your banker, so they can see you as more than just an account number. This way, your banker is more likely to take more of an interest in your business's success. A banker is more likely to approve a loan to someone they trust.

  • Share your business plan and your goals. The more your banker knows about your business, the more they can recommend products and services right for you.

  • Be honest about your current situation. This includes both the good and bad. If you're facing some challenges, tell your banker. They can help you figure out options.

One of the best ways to build a banking relationship is a referral from a successful small business owner. If you know another business owner and they can connect you to their banker, that gives you an instant edge.

Unfortunately, online banks cannot provide the same type of personal relationship as a local branch. This is an important factor to consider if you're deciding between a traditional or online bank.

Documents You Need To Open A Small Business Bank Account

Whether you plan to open your small business account online or in person, there are several documents you will need.

To open an account, the first steps is to gather the following things:

  • An employer identification number (EIN) or Social Security number, if you're a sole proprietor
  • The business formation documents
  • Ownership agreements
  • Business license
  • Business tax ID
  • Name, address, and state of your business and business owners

Keep in mind that these are some of the most common files that banks request. Some banks may ask for additional information.

Sole proprietors can usually open a business account online and get approval. In cases of an LLC, partnership, or corporation, you and any partners most likely will need to sit down with a banker in person. Be sure to know the criteria.

Do banks check your credit score when opening a business checking account?
Banks may run a soft inquiry on your credit, which will not affect your credit score. But most banks do run your banking history through the ChexSystem. So if you have had overdrafts or other bad marks, that may affect your ability to open an account.

Managing Cash Flow for Small Businesses

Cash flow can really make or break a business. It's important to manage how much money is coming in and out of your business. A big expense, clients not paying on time, or a slow season can all put you in the red.

All businesses experience up and down cash cycles. You should be able to turn to your bank for help if you find yourself struggling. Talk with your banker about how they can help manage cash flow.

Here are some solutions to fix cash flow problems.

  • Business credit card: This can be used as an immediate fix when you just need to bridge a small cash flow gap. You can put some purchases on a credit card and pay it back next month. Just pay back the balance as soon as possible to minimize interest charges.

  • Business line of credit: A line of credit usually have higher credit limits and lower interest rates. It's ideal for short-term operational needs, like purchasing inventory or paying staff. It can also be used during slow seasons to keep the business going.

    It's smart to open a line of a credit before you even need it (when your business is financially healthy). It'll be readily available when you do need funds. And if you don't use it, then you don't pay anything.

  • Business loan/financing: A loan will provide you with a lump-sum of cash. There are different types of loans, such as long-term, short-term, equipment, or commercial mortgage loan. It's smart to finance large purchases so you free up working capital.

The best thing you can do is prepare in advance. An accounting software can help you stay on top of your finances and forecast your cash flow.

It's also important to keep a financial cushion in a business savings account with interest. This cash reserve can help keep you afloat through lean months or times of economic downturn.

How much cash reserves reserves should a business have?
It is recommended for a business to keep three to six months of operating expenses on hand. Your expenses should include overhead, inventory costs, marketing, and employee wages.

Using Business Credit Cards

All small business owners should also consider getting a business credit card. If used smartly, they can be a great way to build your business or kickstart your startup.

Here are some benefits of using a business credit card.

  • Keep your business expenses separate from personal
  • Increase your business purchasing power
  • Easier to get a revolving line of credit than a loan
  • Build business credit, which will be needed if you're applying for financing
  • Earn rewards, like cash back or travel points

You don't have to get a business credit card from the same bank as your business checking. But it could make the approval easier. And it's also more convenient to have banking and credit accounts under one roof.

Credit Card Processing

Being able to accept credit cards is essential for all businesses and will allow you to cater to more customers. It's important to think about how you will be processing credit cards.

Business Account vs. Merchant Account: A business bank account is not the same as a merchant bank account. A merchant account is a special type of account that allows you to take credit card payments.

You have these options:

  • Through your bank. Lots of banks offer merchant services. You may consider this option if you want to have everything under one roof. But the pricing is not always transparent. You'd have to go through an approval process, which may not be ideal for very small new businesses.

  • Sign up with a merchant account provider. There are lots of other merchant account providers, such as Payline Data and Payment Depot. The pricing is more competitive and transparent. But similarly, they require an approval process, so it's better for more established businesses.

  • Use a payment services provider. Third-party processors, such as Square and Stripe don't require underwriting. You can sign up and start accepting card payments right now. This is the easiest and most affordable option for new and small businesses.

You don't have to get merchant services through your bank. It's important to compare pricing and features across all your options. See our list of the cheapest credit card processing companies.

What Experts Say

As part of our series on small businesses, CreditDonkey assembled a team of industry experts to answer readers' most pressing questions. Here's what they said.

Bottom Line

As a small business owner, picking the best bank for your small business needs is important to your success and growth. You'll need it to manage your business finances, as well as potentially apply for a business loan or other services. The right bank can help open more opportunities and help step up your business to the next level.

In summary, consider all your options to see what makes most sense for your small business banking needs. Pay attention to restrictions and read the fine print before getting on board with one.

If you're unhappy with your choice or your business situation changes, you can switch to elsewhere at any time.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.

Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Chase. This site may be compensated through the Advertiser's affiliate programs.

More from CreditDonkey:


Free Business Checking Accounts


Starting a Business Bank Account


Business Account Promotions


Ink Business Cash Credit Card
Apply for Ink Business Cash Credit Card
At Chase's Secure Site
  • Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
  • Earn 1% cash back on all other card purchases with no limit to the amount you can earn
  • 0% introductory APR for 12 months on purchases
  • Employee cards at no additional cost
  • No Annual Fee
  • Go to issuer's official application, terms, and details
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 12 months
N/A
13.24% - 19.24% Variable
$0

How to Build Business Credit

A good business credit score can increase a company's value and protect personal credit. But how can I build my business credit fast? Read on for the answer.

Articles on Best Bank for Small Business

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How to Choose a Small Business Credit Card

For small business owners, credit is vital. But with so many credit cards available designed for businesses, how can you decide which one is right for you and your company? These two factors can help narrow down your selection ...

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