doola: Start your dream US business and keep it 100% compliant
Ashwani Shoda
As the world becomes increasingly interconnected through technology, it is easier than ever for entrepreneurs and startups to expand their businesses.
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doola: Start your dream US business and keep it 100% compliant
As the world becomes increasingly interconnected through technology, it is easier than ever for entrepreneurs and startups to expand their businesses. However, they can easily tap into the vast potential of international markets only if they can handle the financial aspects of global banking.

That’s why we’re breaking down two of the top contenders in the market: Brex and Mercury.

Due to their unique features and benefits, these business banking platforms have gained significant attention from entrepreneurs and small business owners. In this article, we will do a side-by-side comparison to help you determine the best banking platform for your business.

From features and fees to customer service and integrations, we’ll delve deep into Brex and Mercury to help you bank smarter!

Brex vs. Mercury Compared

Brex and Mercury are the most popular choices among small and medium-sized businesses for the best business banking platform. Both offer a range of features and benefits that cater specifically to the needs of modern businesses.

Brex is an all-in-one financial solution that offers corporate cards, expense management tools, and cash management services specifically designed for startups and small businesses.

One of Brex’s main selling points is its ability to provide credit without requiring a personal guarantee or credit check. This makes it ideal for new businesses with little or no credit history.

Mercury, a full-service banking platform, offers checking accounts, savings accounts, loans, and debit cards exclusively for businesses.

It also integrates with popular accounting software such as QuickBooks and Xero, making financial management seamless for business owners.

Both Brex and Mercury have their unique features and benefits that cater to the needs of different types of businesses.

While Brex focuses on high-growth industries like technology and e-commerce, Mercury caters to small businesses. If you are a startup or e-commerce company looking for specialized financial services tailored to your industry, then Brex would be the better choice.

On the other hand, if you are a small business with more basic banking needs, Mercury would be a suitable option with its straightforward account offerings and lower fees.

Brex’s Standout Features

Brex offers cash management and expense tracking, customizable virtual cards, rewards programs, credit limit flexibility, easy account setup, and integrations with popular tools, which make it a top contender in the business banking space.

These features provide convenience and security and add value for businesses of all sizes.

✅ 1. Cash Management and Expense Tracking

Brex offers a highly efficient cash management system that allows businesses to track their expenses in real time. This feature provides detailed insights into spending patterns, making budgeting and financial planning easier.

Additionally, Brex integrates with accounting software such as QuickBooks and Xero, streamlining business bookkeeping processes.

✅ 2. Customizable Virtual Cards

Brex takes security seriously with its customizable virtual card feature. Businesses can create unique virtual cards for each online transaction, significantly reducing the risk of fraud or unauthorized charges on their accounts.

✅ 3. Credit Limit Flexibility

Unlike traditional banks with strict credit limits based on credit scores and loan applications, Brex uses alternative data such as revenue streams and cash flow to determine business credit limits.

This allows newer companies or startups with limited credit history to access higher credit limits than they would with traditional banks.

✅ 4. Easy Account Setup

With Brex, opening a business bank account is a breeze compared to other platforms that require extensive paperwork and long waiting periods for approval. Businesses can open an account within minutes by providing basic company information through the online application process.

Mercury’s Unique Offerings

Mercury is a leading business banking platform offering a range of unique and innovative features designed to make managing your finances simpler and more efficient.

Its fee-free structure, real-time transaction tracking, automated bookkeeping, tax preparation, virtual cards for enhanced security, and quality customer support make it stand out from the competition.

✅ 1. No Fees or Minimum Balance Requirements

One of the most significant advantages of using Mercury over traditional banks or competitors like Brex is its transparent and competitive pricing structure. Mercury has no such requirements, unlike many banks that charge monthly maintenance fees or require a minimum balance to be maintained.

This means you can keep all your funds in one place without worrying about unexpected charges.

✅ 2. Real-Time Transaction Tracking

Mercury’s transaction tracking feature provides real-time updates on all outgoing and incoming transactions, giving you complete visibility into your cash flow.

This feature is handy for businesses with multiple accounts or frequent transactions, as it helps track expenses accurately and avoid potential discrepancies.

✅ 3. Automated Bookkeeping and Tax Preparation

With Mercury, bookkeeping becomes effortless. The platform automatically categorizes your transactions by type, making it easy to reconcile them with your books at tax time.

Additionally, Mercury generates detailed profit and loss statements that can be used for tax filings or to track your business’s financial health.

✅ 4. Virtual Cards for Enhanced Security

Mercury understands the importance of security when managing business finances online. The platform offers unique virtual cards for each transaction, which can be generated instantly for one-time use only.

This added layer of security minimizes the risk of fraud, making Mercury an ideal choice for businesses dealing with large volumes of online transactions.

✅ 5. Account Features

Mercury’s business account caters to big or small startups with a U.S. federal employer identification number. While Mercury offers free business banking accounts with investor networks, venture debt, credit cards, etc., sole proprietors are not eligible to open a Mercury account.

✅ 6. API Access

Mercury accounts come with read-and-write API access to automate finance management. This will also enable you to create custom dashboards using your financial data, make mass payments, and automatically transfer money between your accounts.

You can make up to 100 free programmatic ACH payments in a month for seamless reconciliation.

✅ 7. Mercury Raise

Mercury Raise enables founders and entrepreneurs to network and connect with potential investors for funding and mentorship.

You’ll also get access to expert sessions that compare your software stack with that of other businesses using a database.

✅ 8. Mercury Vault

Mercury Vault is a risk management tool that allows you to extend your Federal Deposit Insurance Corporation (FDIC) insurance to up to $5 million.

You can also invest in Mercury Treasury’s Vanguard money market fund for additional returns using your surplus funds.

Brex vs Mercury: Which One Is Easier to Use?

Both Brex and Mercury offer ease of use in their own ways. Brex takes the lead with its user-friendly interface and real-time expense tracking feature.

Mercury, on the other hand, offers a more simplified approach to banking, making it ideal for businesses that prioritize efficiency over advanced features.

Signup Process

Brex offers a straightforward and streamlined signup process that takes just a few minutes.

You can go to their website and sign up by providing basic information about your business, such as name, address, social security number, and authorized signer of the account.

As part of the application process, you may need to verify your identity and provide documentation to confirm your business’s legal structure and ownership.

Once you submit this information, Brex will review your application and typically approve it within 24-48 hours. Once approved, you’ll receive access to your Brex account and start using your virtual card for business expenses.

On the other hand, Mercury’s signup process is slightly more complex and takes a few more days. While the signup process is the same as Brex’s, Mercury also requires additional details such as your EIN (Employer Identification Number) and bank statements from your current business account.

Mercury also conducts a credit check during signup to verify your identity and ensure compliance with federal regulations.

Once all required information has been submitted and verified, you will receive your virtual card immediately and can request a physical card through the app.

Account Management

Both Brex and Mercury offer robust account management systems with unique features. The Brex user interface (UI) is designed to be intuitive and user-friendly, providing easy access to your account activity, including your account balance, recent transactions, and any crucial notifications or alerts.

It ensures a seamless experience for managing your business finances, offering a range of tools and features to simplify expense management, optimize spending, and maximize rewards.

Like Brex, Mercury’s interface is simple and easy to use, designed to streamline your integrated banking and finance management experience.

However, it offers more extensive customization options, allowing users to tailor their experience, which may be complex for users who are unfamiliar with tech-focused platforms.

Fee Structures of Brex and Mercury

Brex offers a unique fee structure that sets it apart from traditional banks. The platform provides unlimited domestic wire transfers and ACH payments at no extra cost, a significant advantage for businesses that frequently send money to vendors or suppliers.

Moreover, Brex does not charge foreign transaction fees for international payments made with its debit card. However, it’s worth noting that there is a 0.5% foreign exchange conversion fee for non-USD transactions.

On the other hand, Mercury has a straightforward and transparent fee structure with minimal charges compared to traditional banks. The platform does not charge monthly maintenance fees, minimum balance requirements, or overdraft fees for its checking account.

Additionally, Mercury offers up to 250 free monthly transactions and only charges $0.10 after exceeding the limit.

Mercury also stands out when it comes to international transactions as it offers competitive foreign exchange rates and low wire transfer fees compared to traditional banks.

With Mercury’s global payment network powered by TransferWise and SWIFT integration, businesses can easily send money internationally without worrying about excessive charges.

Breaking Down Brex’s Fee Schedule

Unlike traditional banks, Brex does not charge monthly maintenance fees. This means you will not be charged any fees just for having an account with them, regardless of your account balance or activity level.

However, it’s essential to remember that additional charges may still exist for specific services and transactions.

While Brex offers international wire transfers at no additional cost, if you choose to use SWIFT as your transfer method instead of Brex’s FX services, which involve currency conversion, then SWIFT’s standard charges may apply.

When using your Brex card internationally or making purchases in a foreign currency, you may incur a 0.5% foreign transaction fee. Another potential downside of using Brex is that it does not offer overdraft protection or allow overdrafts.

Understanding the Costs Associated With Using Mercury

First and foremost, it’s worth noting that Mercury does not charge monthly fees or minimum balance requirements for its basic business checking account.

However, some costs are still associated with using Mercury, like the flat $15 fee for the wire transfer via the intermediary bank. Also, you must pay a 1% fee for currency exchange since foreign transactions are not free.

Like most online banking platforms, third-party service fees may apply when using certain features on Mercury, such as Treasury account management or mass payment via Mercury API.

It’s important to carefully review the terms and conditions of any additional services you use through Mercury to understand potential costs.

Customer Support Quality

Brex offers 24/7 phone, email, and live chat support, making it convenient for businesses with different time zones. The response time for each channel is also impressive, with most queries being resolved within minutes.

On the other hand, Mercury also offers multiple customer support channels, including phone, email, and live chat options. However, their availability is limited from Monday to Friday during traditional business hours (9 am-6 pm EST).

One significant advantage that sets Brex apart from Mercury in terms of customer support is its dedicated account managers for each business account.

Mercury does not offer dedicated account managers but instead has a ticket-based approach where Mercury representatives may handle one account depending on availability. While this may work well for some businesses, others may prefer having a single point of contact who understands their unique requirements.

How Can doola Help?

doola provides end-to-end business formation and financial management services that make it a complete package for businesses of all types and sizes.

From US bank account creation to company formation, tax filings, and CPA consultations, you can access various essential services tailored to streamline your finances and ensure compliance at every step.

While our business-in-a-box capabilities provide everything to meet your banking needs, our Total Compliance Package is the ideal choice as it enables you to navigate the complexities of running and growing your business seamlessly.

To know more, grab a free consultation with us today!

FAQs

Are there any monthly fees associated with using these platforms?

Brex does not charge any monthly fees for its basic plan, which includes access to its credit card services. However, additional fees exist for advanced features such as cashback rewards or virtual cards.

On the other hand, Mercury has no monthly fees for its core banking services but charges transaction fees for specific activities like wire transfers or ACH payments.

Are there any limitations on the number of users or transactions?

No, neither platform has any limitations on the number of users or transactions allowed within their plans.

Can I integrate these platforms with my existing accounting software?

Yes, both Brex and Mercury allow integration with popular accounting software like QuickBooks and Xero through APIs (Application Programming Interfaces).

Are there any security concerns with using these platforms?

Brex and Mercury have advanced security protocols to protect users’ data and transactions. They also offer features like two-factor authentication and fraud detection to ensure the safety of their clients’ accounts.