Stuck Between Novo and Mercury? 

Fret not, as we are here with all the details to help you make the right choice.

Running a business is a whirlwind and choosing the right business banking platform will make your life easier. Novo and Mercury are two top contenders, when it comes to business banking, especially for tech startups and modern entrepreneurs.

Both of them are digital banking solutions with zero monthly fees, limitless transactions, and a streamlined online experience.

With startup-focused services, such as investor database, venture debt, and networking programs, Mercury is a strong choice among tech startups. Mercury users get a sizeable $5 million FDIC insurance through treasury accounts and sweep networks.

On the other hand, Novo offers unlimited ATM rebates and free invoicing. You can get access to your Stripe funds within a few hours instead of days via the Novo Boost feature. This is particularly beneficial for small business owners.

So, which one works the best for you and what are the core decision points to consider while choosing one of them? What are the fee structures for both of them, what do you need to open a business bank account, and what unique features do they offer?

Let’s dive in to help you make the right decision for your business.

Novo vs Mercury Compared

While both Novo and Mercury are built as per the banking requirements of the modern entrepreneur and come with strong feature sets, like zero monthly fees and unlimited transactions, they cater to different business needs.

Let’s delve deeper into the features and unique offerings to help you decide which one is more suitable for your requirements.

Novo’s Standout Features

User Interface

Novo comes with a seamless and easy-to-use intuitive interface that enables you to master the platform with minimal learning curve. The overall banking experience for Novo users is amazing, which is perfect for small business owners and freelancers. 

Account Features

Novo’s business bank account allows you granular control of your financial records and offers detailed insights into all transactions. With Novo Reserve, you can put your savings and budgeting goals on autopilot and choose the percentage of deposits to set aside. The platform will automatically put it into a reserve. You can create up to 20 such reserves that act as savings accounts for later use.

Invoicing

Another excellent feature is free invoicing with your business bank account. You effortlessly create and send unlimited invoices from any device of your choice. You can also customize your invoices in terms of business branding. You can also offer dozens of payment options for your customers.

Additional Discounts

Novo has multiple third-party partnerships that allow you to get instant access to discounts for numerous business tools for payments, payroll, marketing, and more.

Novo Boost

With Novo Boost, you can get your funds from Stripe payments at no additional charge in a few hours, instead of days. This is especially beneficial for small businesses and freelancers, who are seeking quick cash flow.

Novo Funding

As a Novo business checking account customer, you can access up to an advance of as much as $75,000 at a monthly interest rate of 1.5%. Having access to funds at low-interest rates is another added benefit for small business owners, entrepreneurs, and freelancers. 

Integrations

Finally, Novo offers an impressive suite of third-party integrations and thousands of business tools, which enable you to manage your finance operations comprehensively from a single integrated interface. Some of the important integrations include Square, QuickBooks, Xero, Etsy, Slack, and more.

Mercury’s Unique Offerings

Account Features

Mercury offers business checking services specifically designed for startups, such as investor networks, venture debt, credit cards, etc. However, Mercury is not available to trusts or sole proprietorships. Its core advantage is a free business banking account with a transparent and competitive pricing structure.

API Access

You can automate finance tasks with Mercury’s API access to every account, and unlock many advanced finance management capabilities, such as custom sweep rules, custom dashboards, mass payments, etc. You can make as many as 100 free programmatic ACH payments every month and query account data in an intuitive manner.

Mercury Raise

Mercury Raise is also a comprehensive platform for founders to secure funding, connect with potential investors, and avail of resources like networking and mentorship programs. As a founder, you can also get access to expert sessions and compare your software stack with the other businesses in the industry with the help of a database. 

Mercury Vault

Mercury Vault is another specialized offering from Mercury. It is a risk management tool that allows you to extend your Federal Deposit Insurance Corporation (FDIC) insurance to as much as $5 million. You can also invest in Mercury Treasury’s Vanguard money market fund. 

Novo vs Mercury: Which One is Easier to Use?

Now that you have had a walkthrough of the unique features of Novo and Mercury, let’s explore how they fare against each other in terms of user experience and ease of use.

Sign-up Process

Novo offers a lightning-fast sign-up, and you can get up and running within minutes. All you have to do is visit the official website, submit your basic business details, and connect your Stripe account (optional). Everything, right from form submission to verification is quick and can be easily completed within the same day.

Mercury’s sign-up process is a bit tedious and spans over a few days to complete. While you can initiate the sign-up online from the official website, you are required to submit additional documentation for verification.

Account Management

Novo offers a platform-agnostic user interface, which means you can manage the entire banking and finance management segment from any device of your preference. Novo has an intuitive and easy-to-use mobile app for centralized management of all the finance operations and business banking. 

The app offers a truly seamless banking experience as you can check account balances, generate invoices, transfer funds, track expenses, and more from a single place.

Mercury also offers a sleek app that offers integrated banking and finance management experience. However, it comes with a steeper learning curve, as compared to Novo, especially for users who are unfamiliar with tech-focused platforms.

Fee Structures of Novo and Mercury

As mentioned above, both Novo and Mercury don’t have any monthly maintenance fees or transaction limitations. However, there are subtle differences in their fee structures which can be consequential for you depending on your business type and scale. 

Here is a breakdown of fee structures and costs associated with business banking for both Novo and Mercury to help you make the best choice. 

Breaking Down Novo’s Fee Schedule

Novo has no monthly fees, asks for no minimum deposit, and has no minimum balance criterion. You don’t have to pay any overdraft fees in case your account lacks sufficient funds for a transaction. Also, at the end of the month, all ATM fees get refunded to your account.

While the ACH transfers are free, if you use Express ACH for same-day fund transfers, you have to pay 1.5% of the total transaction amount. The maximum fee cap for such transactions is $20.

Understanding the Costs Associated With Using Mercury

Mercury is also almost free to use as there are no fees for monthly maintenance, overdraft, ATM usage, etc. The wire transfer via the intermediary bank comes with a flat $15 fee, whereas Mercury incurs any intermediary wire fees. 

However, foreign transactions are not free, and you have to pay a 1% fee for currency exchange. The advanced features, such as Treasury account management, mass payment via Mercury API, etc., might come with associated fees.

For more information, we recommend checking the official website, as the payment structures can also change from time to time. 

Customer Support Quality

The quality of customer support is a major criterion that you must consider while choosing a business banking partner. Here’s how Novo and Mercury compare in this area.

Novo

When it comes to customer support, Novo takes the lead with more availability across a wider range of platforms and prompt assistance via calls. 

It offers unbeatable accessibility. Right from the app, which is available on both iOS and Android devices, to a web-based platform for desktop access – Novo is perfect for founders who are always on the go and need seamless capabilities. The customer support is impeccable and can be availed of via live chat and phone, ensuring prompt assistance.

Mercury

The Mercury banking app is currently available only for iOS users but they have a web interface. However, the functionalities and capabilities of the web interface are limited as compared to the app. You can get customer support via email, and phone support is available on a limited basis.

The Verdict

Use Mercury when you want: 

• Access to high-yield savings products
• Regular wire transfers
• Extended FDIC insurance

Use Novo when you want to: 

• Save on ATM fees
• Have a banking platform for sole proprietor or trust
• Use Stripe for payment processing

How Can We Help?

doola is a comprehensive platform that offers excellent business-in-a-box capabilities, like US bank account creation, company formation, tax filings, CPA consultations, and compliance support. You can get in touch with doola’s tax experts to identify your current and near-future banking needs, and establish the right business structure.

doola offers different plans for specific requirements but the Total Compliance Package is the best option as it evolves alongside your business and comes with diverse services.

To know more about doola’s offerings, grab a free consultation with us today!

FAQs

How do Novo and Mercury compare in terms of features and offerings?

Novo offers robust expense management tools, truly seamless integrations with thousands of business tools, and an easy-to-use interface. The app is available for both Android and iOS devices and customer support is awesome. 

Mercury is a more comprehensive banking solution for startups and offers multiple advanced features. You can get access to APIs for automating different business banking tasks. The app is available only for iOS devices and customer support falters when put against Novo.

What are the fee structures of Novo and Mercury, and how do they compare?

Almost all the basic finance functionalities are available free of cost on both platforms. So, it’s more about your business needs and operational preferences. Use Novo if you want a straightforward and cost-effective, yet feature-rich banking platform.

Use Mercury in case you are looking for premium perks, and tech-based capabilities, and require regular wire transfers. 

Are Novo and Mercury equally secure in terms of protecting user information and transactions?

Yes, both Novo and Mercury employ industry-standard encryption technologies and security protocols. You can review the details on the official websites for an even better understanding.