Small Business Tools is in Beta   Feedback and Issues

How do I choose a bank for my business?

Vote Up
4
Vote Down
I just started a new small business and need to open a business bank account. I will need to, eventually, take credit card payments from my customers online (not in person). I will also need basic checking services (I won't be cutting a ton of checks).

Are there additional things I should look for? Is there a way to get what I need for no fees?
1 year ago



5 Answers
Vote Up
2
Vote Down
Here is a great, well researched, and thorough article on the subject. It is published on September 5, 2008 -- so some information may be out of date by the time you read this:

http://www.eganltd.com/index.php?option=com_myblog&show=Which-bank-should-I-choose-for-my-business-.html&Itemid=55

Spoiler alert: Here is the bank the authors ultimately chose:

So ... what is the bottom line? We ended up choosing Commerce Bank, for several reasons - first, completely free real-time balance information. We also like that it's open 7 days a week (we opened our accounts on a Sunday afternoon), it's open late, and deposits made before 6 p.m. are available next day. Commerce, to us, just seems to think differently about banking, and we liked how they think. However, with the recent Commerce-TD Ameritrade merger, we have no idea how Commerce's thinking might change. Until then, we're sticking with the friendly red "C" man.

But the entire article is worth reading, and you might choose one of the other reviewed banks for different reasons.

1 year ago

offensive?

Vote Up
2
Vote Down
There is no need to get your merchant account through your bank. The merchant account is what you need to process credit card transactions. You should research your merchant account separately from researching your business checking / savings accounts.
1 year ago

offensive?

Vote Up
1
Vote Down
In my quest to get answers to the same questions I discovered the following:
  1. There's no such thing as free checking for businesses. I eventually chose Wells Fargo because they're the most stable, best customer service and, most importantly, most recommended by my friends who are also small business owners. Their monthly fees are very reasonable ($12 for basic checking and $20 for Expanded). Wells Fargo does a good job comparing the different offerings. You can also go to a branch and talk to someone. The branch I went to, and eventually signed up with, had the best banker I've ever spoken with.
  2. PayPal and Google Checkout are the way to go for online credit card processing, especially in the beginning. Customers will trust these 2 more than me collecting their financial info. Of course, PayPal and Google Checkout will never share the info they collect with you.  I was willing to accept that because, at the end of the day, I don't really care about my customers' financial info. There are also the fees which all the gateway and merchant services charge. With PayPal and Google Checkout you pay as you go as opposed to the recurring monthly fees gateway and merchant services charge regardless of the volume of transactions.
Please feel free to email me if you have other questions.
1 year ago

offensive?
Rami
Founder and CEO, Expressori
----------------------------
www.expressori.com
"Affordable Phone Fashion"
----------------------------

Vote Up
0
Vote Down
I'm going to be changing banks as I with Wamu right now and want to leave them as they were bought out by JP Morgan.  I don't believe in supporting banks that went under and were purchased by other banks.  Why should I reward them for failure?
1 year ago

offensive?


Vote Up
-1
Vote Down
Contact the Small Business Administration in your area. They work with certain banks. Typically community banks are better.
1 year ago

offensive?




Your Answer:
You must sign in to answer a question.
Sign In
Email Address:
Password:
Sign Up
First Name:
Last Name:
Email Address:
Company Name:
Company Url:
Welcome!

Small Business Tools is a place where small business owners and employees can ask questions and get authoritative, community reviewed responses.

Start sharing your expertise now! Signing up on the same page you participate lets you get started immediately without having to wait for emails and confirmations.

About
FAQ

 

tagged with:
 
bank x 1
Checking x 1

Asked 1 year ago

Views 40

Last Activity 1 year ago

 

 

Related Topics
Please Login or Register to Vote.
(click on this box to close)