How to Set Up Your Bank Account with Mercury in 2024: A Step-By-Step Guide

In 2024, when almost everything has shifted online, who still wants to get stuck with traditional banks? No one! Mercury is a perfect option whether you are running an e-commerce and need a business account, are tired of conventional banks, or want some convenient banking systems.

With Mercury, you will say goodbye to long bank queues and lots of paperwork and enjoy a seamless digital banking experience. Mercury has many features that make it more attractive than traditional banks, such as the absence of monthly maintenance fees, which benefits small businesses with business resources. It also doesn't have minimum balances, allowing companies to manage their funds without unnecessary pressure.

If you are considering opening a business or personal account with Mercury in 2024, keep it here as Foundeck discusses everything you need to know about Mercury and even help you set up an account.

Contents

• What is Mercury?
• Pros and cons of Mercury Bank
• Specific features of Mercury
• Who is Mercury suitable for?
• Eligibility for Mercury bank account
• A step-by-step guide to setting up a Mercury account
• How to increase your chances of being approved
• How to manage different currencies within Mercury
• Tips for managing your finances with Mercury
• How to ensure security and compliance within Mercury
• FAQs about Mercury

Let's get started!

What is Mercury?

Technically speaking, Mercury is not a bank per se. Instead, it is a financial technology company that offers a wide range of online banking services. Mercury's bank account was designed to cater to the needs of startups and small businesses, so it does not charge monthly maintenance fees to account holders. 

What separates Mercury from traditional banks is that it operates entirely online, making it offer a seamless and user-friendly experience. This is another reason it is a perfect solution for digital businesses, including e-commerce.

The pros and cons of Mercury

Like any financial service, Mercury also has unique benefits and drawbacks that you must consider before opening an account. But generally, its benefits still outweigh the disadvantages. Let's explore its pros.

Pros of Mercury

1. Startup-friendly features

Starting a business is not a walk in the park, and handling its financial aspect doesn't improve it. So, the least you want is a bank that offers features that can make running your startup seamless. This is where Mercury comes in. It is designed with startups in mind, offering features catering to their needs.

One of Mercury's most incredible features is that it does not charge monthly maintenance fees to its account owners, making it a perfect option for startups still running on limited costs. Maintaining a minimum balance is also unnecessary, as it provides flexibility for businesses experiencing fluctuating cash flows. Lastly, Mercury's free domestic wire transfers can help companies save money. This feature can also help startups that need to keep operations costs as low as possible.

2. Presence of integrated tools

Unlike most traditional banks, Mercury offers account holders integrated tools that make managing business finances much easier. Customizable user permissions allow businesses to create different access levels for team members, while visual cards help businesses issue virtual debit cards. These tools are handy in running a business.

3. Offers seamless online experience

Mercury's intuitive and user-friendly platform is another key feature that differentiates it from other financial services. Even if you are not tech-savvy, you will find it easier to access and use Mercury for your financial services.

Mercury's modern user interface is easy to navigate and provides real-time transaction notifications, which is critical in helping businesses track their finances quickly, identify any unusual activity, and take prompt action. Another incredible thing about Mercury that enables it to offer a seamless online experience is its mobile accessibility, allowing entrepreneurs to access and manage their accounts anywhere.

4. Transparent practices

Who wants to deal with a bank that lacks transparency in its practices? Absolutely no one! Mercury is widely known for its transparency practices, which make it more appealing to entrepreneurs. For instance, it provides clear and upfront information about any applicable service fees. This helps avoid hidden charges, which are typical with many traditional banks.

5. Security and Compliance

Of course, security is one of the main concerns when choosing a bank for business or personal use. You want to ensure that your money and data are adequately protected. One incredible thing about Mercury Bank is that it prioritizes security and compliance, ensuring enhanced trust for entrepreneurs. 

Mercury Bank is insured by the FDIC up to the maximum limit, which provides greater peace of mind. This bank uses modern security protocols to safeguard transactions and account details, reducing the risk of data breach or fraud. It also complies with relevant financial regulations, helping businesses comply with legal regulations.

As you can see, Mercury offers multiple benefits that come in handy for businesses that seek flexibility, convenience, and advanced financial tools.

The cons of Mercury

Although Mercury Banks offers incredible benefits for startups and small businesses, it also has some potential downsides to consider:

1. Limited physical presence

Since the bank operates entirely online and has no physical branches, it does not suit entrepreneurs or businesses that prefer in-person banking services or those that need to handle cash deposits more often. Additionally, it doesn't support cash deposits, making it challenging for businesses that rely heavily on cash.

2. Limited product range

Mercury's services are primarily focused on checking business accounts and saving money. Unlike traditional banks, it doesn't offer extensive banking products, such as comprehensive payroll services, merchant services, insurance services, etc.

3. Limited phone support

Mercury Bank only offers customer support during standard business hours. Of course, this can make it challenging for businesses that operate outside regular hours or need prompt assistance during off-hours.

4. High dependence on technology

Since Mercury operates entirely online, it heavily relies on the internet for access. Managing an account becomes difficult or impossible when the internet is unavailable or with limited access.

Specific features of Mercury

As already stated, Mercury has a range of features that make it more appealing to startups and small businesses. Here are features of Mercury you should know:

1. Mercury Dashboard: This platform allows businesses to manage all their banking activities. You can view account balances, track transactions, and monitor financial health in real-time.
2. Mercury Vault: This feature allows customers to transfer uninsured deposits across a network of FDI-insured banks quickly. Mercury's sweep networks and partner banks allow clients to receive FDIC insurance worth up to $5 million.
3. Mercury Treasury: Mercury Treasury is an automatic cash management account that lets users put extra money in highly liquid, lower-risk mutual funds. By doing this, it ensures that idle funds produce returns as opposed to being left in accounts with no interest or low interest rates. Only those consumers with cash balances greater than their FDIC insurance limitations may choose this option. The yearly rate can reach 5.42% as of August 9, 2023, and a $250,000 minimum deposit is required.
4. Batch payments: This feature allows entrepreneurs and businesses to process multiple payments simultaneously, which can help save time and reduce the administrative burden of handling several individual transactions.
5. International payments: As mentioned earlier, Mercury also supports international wire transfers in various currencies. This is crucial in helping businesses pay vendors, staff, and contractors abroad.

Who is Mercury suitable for?

You are probably wondering if this particular bank is ideal for you. First, Mercury is well suited to many startups and small businesses because of its features, such as virtual cards and multiple accounts, which help these businesses manage their expenses, control cash flows, and keep their finances adequately organized.

Mercury Bank may also be well-suited to remote and distributed teams as it allows for easy access and management of funds worldwide. Teams working in different locations can take advantage of virtual cards.

Mercury's support for international payments and multi-currency transactions can also greatly benefit US-based businesses with global reach. This makes paying employees, vendors, or contractors abroad much easier while effectively managing currency exchange.

Eligibility for Mercury Account

Now that you know Mercury's benefits and know that this account suits you, you must set up an account. But to be approved quickly, you must meet its specific eligibility requirements.

Here is a breakdown of the eligibility requirements for opening up a Mercury account:

1. A clearly defined business type: You must define your business type to be eligible for a Mercury account. This bank primarily serves U.S.-based corporations and LLCs. These include S-corporations, C-corporations, and LLCs formed in any state in the U.S.
2. Business location: Mercury only supports businesses incorporated and operated within the U.S., so your business must be registered as a U.S. entity with a valid Employer Identification Number [EIN] from the International Revenue Service [IRS].
3. However, it is worth mentioning that international founders can also open a Mercury account provided that at least one owner or officer of the company has a valid SSN or ITIN. However, their business must be incorporated into the United States.
4. Business Activity: The kind of business you want to engage in can also determine whether you are eligible for a Mercury account. Your business activity must be legal and comply with all U.S. laws and regulations. It is worth mentioning that Mercury has specific guidelines regarding the types of businesses they accept. For instance, it does not support high-risk industries, including gambling, cannabis products, adult entertainment, etc.
5. Documentation requirements: If you do all the documentation tasks yourself, you must verify them to guarantee your approval. Some of the essential documents you need when setting up a Mercury account include:

• Proof of identity: Personal identification documents such as a passport or driver's license for the individual opening the account.
• Proof of address: Utility bills, bank statements, or any other document that can verify your residential or business address. Not everyone is required to submit these documents, but if you are from a risky country, you'll be asked to submit them, and it can also help to increase your chances of getting approved.
• Business formation documents: This will depend on your business structure. For partnerships and corporations, Mercury requires you to provide documents such as articles of incorporation, partnership agreements, registration certificates, etc.
• Employer Identification Number [EIN]: To open an account, you must provide a valid EIN issued by the International Revenue Service [IRS].

If you want to increase your chances of approval, seek the assistance of a professional with extensive knowledge and experience.

A Step-by-step Guide to Creating an Account with Mercury in 2024

Well, now that you are familiar with the requirements for setting up a Mercury account, let's get a closer look at how you can set up an account with Mercury. This process is straightforward, and you can do it without any hassle.

Step 1: Sign up online

Now that you have verified that your business meets Mercury's eligibility criteria and have gathered all the required documents visit the Mercury website to sign up. Remember that Mercury does not have physical branches you can visit. So, the entire process is done online.

Their homepage has a "Get Started" or "Open an Account" button to sign up. You must set up your online profile by providing a valid email address and creating a strong password for security reasons. Once your account is approved, you will use these details to manage it.

Step 2: Provide required information

You will then be required to fill out an application form with the necessary details to complete your account setup. Some of these details include:

1. Business details: You must provide correct information about your business, including its legal structure, name, address, and EIN. You must provide details about your United States entity if you are an international founder.
2. Owner information: Provide details of all the beneficial owners and controllers, including their date of birth, address, SSN, ITIN, and ownership percentage.
3. Business activity: You must also provide details about the nature of the business and ensure that it aligns with the industries Mercury supports.

You must ensure that all the information provided is accurate and up-to-date to avoid rejecting your application or causing unnecessary delays.

Step 3: Upload the required documents

Once you have completed the form, you may also be required to upload the necessary documents. These may include incorporation documents [Certificate of Formation], Articles of Incorporation, or Operating Agreement] or identification documents such as clear, colour scans of your government-issued ID. Mercury may also ask you to provide additional documents to verify your business's legitimacy. So be ready for this, too.

Step 4: Review and submit

Now that you have provided all the documents Mercury needs for your account setup, reviewing them before you press the "Submit" button is essential. Start by double-checking the details you have provided. Make sure that they are accurate and complete. Remember that incorrect or incomplete information can increase your chances of not being approved. Once you have ascertained that all information is correct, submit your application for review.

Step 5: Wait for review and approval.

You have done your part, and the ball is on Mercury's side. You don't need to worry about rejection if you provide accurate details. Once you have submitted your details, Mercury will review your application. The process often takes a few business days. However, it may take longer if Mercury needs additional verification.

Mercury will email you if they need more information or documentation. So, check your email more often and respond quickly to avoid delays. You will receive an email notification if your application is approved.

Step 6: Set up your online banking profile.

Once your account has been approved, you must log in to your Mercury account using the credentials you used to set it up. You will be asked to set up two-factor authentication [2FA] for added security.

Step 7: Fund your account

Once you've set up your profile on Mercury, you need to transfer funds into your account to start using the bank. You can do this via its wire transfer feature or Automatic Clearing House [ACH] transfer from another bank account. Once you have funded your account, you will be issued virtual cards for instant use.

Step 8: Explore Mercury's features

As discussed earlier, Mercury has comprehensive features that make navigating and using it seamless. First, familiarize yourself with the bank's dashboard, which provides users with an overview of their finances, recent transactions, and any other details about the account. 

You can do so if you need multiple accounts to separate funds for different purposes. The best thing is that Mercury allows you to add users to your account, which is beneficial, especially if you have a team. You can assign them suitable roles and permissions.

Step 9: Integrate with other business tools.

If you want your transactions to be as smooth as possible, you must integrate your Mercury account with other business tools. These may include software like QuickBooks or Xero to automate and expedite your bookkeeping tasks. 

Connecting your account to international payment services such as PayPal, Stripe, or WorldPay is smart. You can also access Mercury's API access feature, which allows you to customize and automate your Mercury account by creating internal dashboards that can make bulk payments, automate reconciliation, create transfer rules, etc.

How to Increase Your Chances of Being Approved

While your hope when signing up for a Mercury account is to get approved as quickly as possible, there are instances that your application may be rejected. There are several reasons why your application may be rejected, including:

1. Incomplete or incorrect documentation
2. Failing to comply with eligibility requirements
3. Issues with personal identification
4. Problematic ownership structures
5. High-risk business models
6. Inadequate business description
7. Inability to verify your business legitimacy
8. Being a resident of prohibited countries

Fortunately, you can file an appeal if your Mercury account application is rejected. Mercury allows users to provide further details or address any concerns that might have been the reason for the rejection. To do this, contact Mercury's support staff, describe what happened, and send along any updated or missing documentation. 

Be sure to address the grounds for rejection, which Mercury might specify in their response. A well-prepared appeal that addresses the issues raised can increase your chances of having the decision reconsidered.

Here are tips to help you increase chances of your application being approved:

1. Ensure that your business is a United States-based LLC or corporation [S-Corp, C-Corp] since Mercury only accepts these entities.
2. Provide accurate and up-to-date documentation, whether ID, EIN letter, or Articles of Incorporation.
3. Provide consistent information. If the details on your application do not match the information in your documents, you will only increase the chances of your application being rejected.
4. Offer a clear and detailed explanation of your business, including its industry, activities, revenue generation, operational model, etc. Remember that the more details you can provide about your business, the higher your chances of approval.
5. Respond quickly and thoroughly if Mercury requests additional information from you. This can help avoid rejection and delays.
6. Avoid being in the high-risk category, as Mercury does not support businesses in high-risk industries such as adult entertainment, gambling, and cryptocurrency and may reject them. 

Following the above tips can increase your chances of approval for a Mercury account.

How to Manage Different Currencies within Mercury

Effective management of currencies is crucial if you are an entrepreneur dealing with various currencies. Mercury offers features to help businesses and individuals manage multiple currencies within their accounts. These tools include:

1. Multi-currency accounts

Mercury allows startups and small businesses to open and manage multiple accounts in various currencies within a single account. Whether you are handling USD, EUR, or GBP, Mercury allows you to create separate accounts for each of these currencies, helping you keep your finances organized. It also avoids the complexities of currency conversion in a single account.

2. Currency Conversion

Thanks to Mercury's built-in currency conversion tool, startups and small businesses can directly convert funds between different currencies. Thankfully, the exchange rates are very competitive. But make sure that you are aware of any associated fees.

3. International Wire Transfers

 Mercury also supports international wire transfers in various currencies. When you want to make a payment, you can select the desired currency from your account so that the recipient receives the funds in their local currency. This tool is beneficial, especially for businesses dealing with employees, suppliers, or clients abroad.

4. Exchange rates insights

Mercury also allows businesses and entrepreneurs to monitor exchange rates and trends, which is crucial in helping them make informed decisions about currency conversions and save money by assisting them in their conversions more strategically.

5. Customer Invoicing

Mercury's invoicing tool allows startups and small businesses to generate various currencies, making billing clients and customers abroad easier.

6. Integration with Accounting Software

Mercury integrates seamlessly with other popular accounting software such as QuickBooks, Wave, or Xero. This can help you track and manage different currencies more efficiently. Ultimately, these seamless integrations help you automatically categorize and reconcile transactions in various currencies, simplifying your bookkeeping.

Tips for managing your finances with Mercury

It is essential to manage your finances with Mercury. Thankfully, you can achieve that by effectively leveraging the platform's features. Here are tips to help you get the most out of your Mercury account:

1. Set financial goals

One of the most important things you need to do before you embark on ways to manage your finances with Mercury is to set clear and achievable goals. Is it to save for a house purchase, clear off your student loan, or save money for retirement? Determining your specific goals will offer guidance and help you stick to the goals.

2. Establish a budget

To manage your finances effectively, you need to create a budget. What do we mean by this? Well, you need to track your income and expenses. From there, you can allot money to various categories such as savings, utility bills, transportation, and groceries. Mercury's expense tracker makes this more accessible and efficient.

3. Automate recurring payments

You must also automate recurring payments such as rent, utilities, and software subscriptions through Mercury's platform to avoid late fees and missed payments. This helps to maintain a healthy cash flow.

4. Monitor your spending and any other transactions regularly

Keeping a tab on where your money goes is critical to managing your finances efficiently. The Mercury's dashboard provides a clear view of your transaction history. Of course, this is crucial as it can help you identify areas where you could be overspending and quickly spot any discrepancies or unauthorized transactions.

5. Set up alerts and notifications.

This tip can also help you manage your finances with Mercury. Enable alerts and notifications for crucial account activities like large transactions, low balances, or when payments are due. This can also help you avoid missed payments and issues such as overdrafts.

6. Save regularly

You must also save diligently for your future goals and build a healthy emergency fund. This requires consistent effort, though. To increase your savings over time, set up automatic transfers from your checking account to a savings account offered by Mercury with more excellent interest rates.

7. Think of wise investments.

Once you have set up an emergency fund and regularly save money, consider looking into some of Mercury's platform's longer-term, higher-returning investment alternatives, such as mutual funds or stocks.

8. Secure your account

Enable two-factor authentication (2FA) to improve your Mercury account's security. This ensures that only you and authorized individuals can access your finances, adding a layer of protection.

9. Don't hesitate to consult Mercury's support.

Contact Mercury's customer service if you have questions or concerns about managing your finances. They can offer solutions or suggestions designed to meet your business's goals.

 10. Be Always on the lookout for Mercury's new banking features

Stay informed about any new services that Mercury offers so you may take advantage of them, such as low-interest lending options and cashback offers.

These tips will help you manage finances using Mercury in a way that will make sure your business runs smoothly and effectively.

How to ensure Security and Compliance within Mercury

Mercury has implemented robust features and procedures to protect its users' financial data. Here is a thorough rundown of the security measures in place:

1. Encryption: Mercury secures data transfer between users' devices and servers using industry-standard encryption techniques. This guarantees that sensitive data, such as login credentials and details of transactions, is shielded from unauthorized access.
2. Two-factor authentication (2FA): Mercury provides 2FA as an extra security measure besides passwords. Users must submit a second verification form to access their accounts, like a unique code sent to their mobile device. This helps prevent unauthorized access even if login credentials are compromised.
3. Fraud Detection: Mercury uses advanced fraud detection algorithms to monitor account activity constantly for signs of fraudulent activity. Transactions that appear suspicious are marked for additional scrutiny, and necessary steps are taken to protect against financial loss.
4. Real-Time Transaction Alerts: Mercury sends users transaction alerts in real-time to notify them of any suspicious or unusual activity on their accounts. This enables consumers to act quickly in case of fraudulent transactions or security breaches.
5. Secure data storage: Mercury's incredible way to enhance the security of its user's data is to store their financial data in encrypted databases safeguarded by multiple layers of protection. This prevents unauthorized access and data breaches of sensitive information, including account numbers and transaction histories.
6. Card Controls: Lastly, users may control their debit cards directly from the Mercury platform. This includes spending restrictions, limiting the kinds of transactions that can be made with the card (such as online purchases and ATM withdrawals), and temporarily locking or unlocking the card. These measures reduce the possibility of fraud and stop debit cards from being used without authorization.

While Mercury has put these measures in place to safeguard their users' sensitive financial data, the users also need to implement specific measures to enhance their data security. These include:

1. Using strong passwords to keep the account safe and securely storing and managing them
2. Enabling Two-Factor Authentication to add an extra layer of security
3. Regularly monitoring account activity for any suspicious or unauthorized transactions
4. Ensuring that the devices and software used to access your Mercury account are up-to-date to protect against exploits and vulnerabilities
5. Using secure, private networks when accessing their accounts, mainly when conducting a financial transaction

Mercury compliance features

Mercury also offers features that facilitate compliance, which is especially essential for startups and small businesses to maintain compliance with regulatory requirements.

1. Know Your Customer [KYC]: Mercury uses this feature to verify a user's identity during account creation. It is an essential feature that prevents fraudulent activities and ensures compliance with anti-money laundering [AML] activities that could put your account at risk.
2. Transaction Monitoring: Mercury uses highly developed transaction monitoring algorithms to identify and highlight possibly fraudulent or suspicious activity. This helps businesses adhere to legal requirements for financial crime detection and fraud prevention.
3. Anti-Money Laundering [AML]Compliance: Mercury utilizes sophisticated monitoring technologies to identify and stop money laundering activities, thereby complying with anti-money laundering (AML) regulations. This entails identifying suspicious transactions, informing the appropriate authorities, and keeping accurate records that comply with regulations.
4. Data Security and Privacy: Mercury takes strong precautions to protect your financial information and complies with data protection laws. These procedures include encryption, secure servers, and periodic audits.
5. Mercury is a reliable and safe platform for managing your company's money while guaranteeing compliance with legal and regulatory standards thanks to these compliance features.

Frequently Asked Questions 

Can I apply for a Mercury account if I am a non-US resident?

Yes. You can apply for a Mercury account even if you are not a U.S. resident, provided that one of the critical officials or owners has a valid Social Security Number or Individual Taxpayer Identification Number.

Where is Mercury located?

Mercury operates entirely online, so it has no physical branch location. Since it is an online-only banking platform, users can manage their finances online through its digital platform or mobile app, offering greater convenience. However, Mercury's headquarters are in San Francisco, California.

How do I deposit money in my Mercury account?

Mercury provides multiple depositing options for its users, making choosing a method that meets your needs more leisurely. The most common options for depositing money into your account include direct deposit, mobile check deposit, Automatic Clearing House [ACH] transfer, and wire transfers.

How much does Mercury cost?

Nothing! Mercury is free to use. You don't pay any costs upfront. However, if you seek specific advanced features, you might have to pay applicable fees.

How do I close my Mercury Bank account?

Contact Mercury's customer support team directly if you wish to close your Mercury bank account. You can contact them through [email protected] or the in-app chat feature. They will guide you through closing the account and assist you with the necessary steps.

Final Thought

Mercury is an excellent choice for individuals, startups, and small businesses looking to open new accounts. Opening a bank account with Mercury allows you to access various benefits the platform offers its users.

The platform offers fast and easy account setup, seamless integration with third-party tools such as QuickBooks, and enhanced security, giving you peace of mind. Moreover, this platform allows you to conduct your banking services, whether making payments, deposits, or saving money to your account, from any part of the world without needing to visit any physical branch, offering you unmatched convenience and flexibility. So, now that you know the steps for setting up your Mercury account, you can do it today and enjoy these fantastic benefits. If you have any questions about how to set up your bank account with Mercury, kindly contact one of our Foundeck experts here.