Brex vs Mercury Business Checking 2023: Which Is Best?
This article is part of a larger series onBusiness Banking.
If your startup needs innovative digital-only banking solutions, Brex’s business account and Mercury’s business checking account are excellent options. Both platforms are designed for tech startups and offer digital banking services that integrate with popular tech tools like QuickBooks and Xero. They also provide access to several useful banking products, such as corporate cards, venture debt, and high-yield treasury accounts.
在两个平台之间,Brex eligi更加严格bility requirements, which makes it more suitable for high-performing businesses or venture-backed startups. Newer businesses are served better by Mercury, which provides tools designed to help early-stage startups scale. However, neither accepts sole proprietorships.
Here’s a summary of what each provider is best for:
- Brex*is best for venture-backed startups looking for fee-free digital banking services with access to rewards-earning credit cards and financial modeling tools
- Mercury*is best for early-stage startups looking for fee-free digital banking solutions and access to cash back credit cards and investor networks
*Providers are financial technology (fintech) platforms backed by and Federal Deposit Insurance Corp. (FDIC)-insured through a supporting bank partnership (10 program banksfor Brex and Evolve Bank & Trust for Mercury).
Brex vs Mercury Quick Comparison
When To Use
Brex vs Mercury Business Checking Account
Brex and Mercury only have one type of checking account, both offering unlimited fee-free transactions. Neither Brex nor Mercury charges fees for monthly maintenance, ACH transfers, or wire transfers. Under Mercury, however, international wire transfers must go through Mercury’s system. Because both accounts are online-only, neither supports cash deposits.
因为水星不是银行,它存储在其资金partner bank, Evolve Bank & Trust, which provides up to $250,000 worth of FDIC protection. Meanwhile, Brex has 10 partner banks. Funds placed in a Brex CMA are spread across these banks and are thus FDIC-insured for up to $1 million.
Overview
Brex |
Mercury |
|
---|---|---|
Best For |
Venture-backed startups looking for fee-free digital banking solutions with access to rewards-earning credit cards and financial modeling tools |
Early-stage startups looking for fee-free digital banking solutions and access to cash back credit cards and investor networks |
Opening Deposit |
None |
|
APY |
None for checking accounts; up to approximately 4.20% on treasury accounts* |
None for checking accounts; up to approximately 4.50% on treasury accounts* |
Bank Network and ATM Fees |
N/A |
None at Allpoint locations and nonnetwork ATMs†
|
Accounting Software Integrations |
QuickBooks and Xero |
|
Business Payment Integrations |
Can auto-sync with Xero and QuickBooks, or can send payments directly from Brex Cash by wire, ACH, and check for free |
Includes Shopify, Stripe, Zapier, Amazon, and PayPal |
Reserve Accounts |
Up to 8 |
Up to 14 |
*Yield is variable and fluctuates regularly.
†Third-party operator fees may apply.
Who Qualifies?
When it comes to opening a business bank account, Brex has stricter requirements than Mercury. Only applicants that meet one or more of the following criteria will be considered for a Brex account:
- Receive an equity investment of any amount from an accelerator, angel investor, venture capitalist, or web3 token
- Has more than $1 million a year in revenue
- Has more than 50 employees
- Has more than $500,000 in cash
- Is a tech startup on a path to meeting the criteria above and referred by an existing customer or partner
Mercury will accept any business that’s incorporated in the United States and has a federal employer identification number (EIN). Note that neither provider accepts sole proprietors, and Mercury doesn’t accept trusts.
Software Integrations
Both integrate with accounting software QuickBooks and Xero. However, there is a wider selection ofBrex integrations, which include Oracle NetSuite, Slack, and Gusto.
Treasury Accounts
Brex and Mercury both provide interest-earning treasury accounts. Brex Treasury lets you sweep some or all of your balance into money market funds. The account offers an APY of approximately 4.20%.
Similarly, Mercury has Mercury Treasury, which offers up to approximately 4.50% APY. However, you’re only allowed to request a Mercury Treasury account if your business checking account balance exceeds $250,000.
Lending Products
Both Brex and Mercury offer venture debt, a kind of term loan designed specifically for businesses that have raised venture capital.
Credit Cards
Brex and Mercury both offer corporate credit cards. Neither card charges an annual fee. However, Mercury only provides credit cards to users with at least $50,000 in their accounts.
The Brex credit card’s main selling point is that it offers credit limits 10 to 20 times higher than the average business credit card. It also earns points that can be redeemed for unique rewards, such as billboards, executive coaching, offsite team events, mental health, and more.
Meanwhile, Mercury’s credit card earns automatic 1.5% cash back on both domestic and international spending.
Perks
Brex除了提供信用卡奖励and Mercury provide discounts to popular business solutions, including Amazon Web Services, QuickBooks, Gusto, Slack, Vouch, and FreshWorks. However, Mercury offers a much wider selection of discount deals.
Financial Modeling
Brex offers financial modeling tools through Pry. The platform lets you track revenue and costs, review profits and losses, build financial plans, and forecast future financial plans.
Investor Community
The Mercury website provides aninvestor databasethat lists seed and preseed investors. ItsMercury Raiseprogram helps introduce business owners to top investors.
Reserve Accounts
As cash management solutions, both Brex and Mercury offer reserve accounts that let businesses separate and categorize their balances. Brex lets customers create up to eight reserve accounts, while Mercury lets businesses create up to 14.
Brex vs Mercury User Reviews
Brex |
Mercury |
|
---|---|---|
Trustpilot Rating
|
3.4out of 5 (based on 500+ reviews) |
3.7out of 5 (based on 500+ reviews) |
Users Like
|
|
|
Users Dislike
|
|
|
Brex and Mercury were commended for having clean and easy-to-navigate user interfaces, though Brex received additional praise for offering seamless QuickBooks integration. Both were criticized for failing to be transparent about their application processes, and applicants who were denied accounts complained that they weren’t offered explanations for their rejection.
Another major point of criticism was the account closure process. Several reviewers from both Brex and Mercury complained that their providers had closed their accounts without proper warnings or justification. Brex, in particular, received heavy customer pushback for its decision to tighten its eligibility requirements in 2022. Many past Brex users also said that they found it difficult to move funds out after being forced to close their accounts.
Meanwhile, dissatisfied Mercury users mentioned that the provider has poor customer service. Because it currently lacks a phone service line, they found it difficult to reach representatives. Meanwhile, Brex was commended for providing responsive and helpful customer service.
Bottom Line
Choosing between Brex and Mercury is a matter of determining what stage of growth your business has achieved. With its strict eligibility criteria, Brex is best suited to midlevel or late-stage startups seeking tools that can accommodate high performance. Meanwhile, Mercury is better for early-stage startups seeking growth opportunities. By providing access to venture debt, business discounts, and investor networks, Mercury is well-positioned to help startups scale.