The best business banking platform is the one that fits how your business actually operates. Tools that seem interchangeable at a glance can feel very different once you're using them to pay bills, track expenses, and keep your finances organized.
Mercury and Novo are both popular online options, but they're designed with different types of businesses in mind. Understanding those differences upfront can help you choose a platform that supports your current workflows and avoids unnecessary changes later.
Mercury and Novo's different market focus
Your business structure and operating model play a big role in which platform makes sense.
Mercury is built for incorporated businesses, including LLCs and corporations, and requires standard formation documents and an EIN. It offers a free plan, a Mercury Plus plan at $29.90 per month, and a Mercury Pro plan at $299 per month, with more advanced team controls, higher limits, and integrations like NetSuite at the upper tiers. Mercury tends to appeal to digital-first companies that value API access, venture capital–friendly features, and more sophisticated spend management.
Novo is open to sole proprietors and unincorporated businesses, making it a more accessible option for freelancers and independent operators. The platform doesn't require minimum balances and includes tools like invoicing and AI-powered bookkeeping, which can be helpful for businesses looking for a simpler, more self-contained setup.
Interest rates and FDIC protection
Novo Business Checking does not pay interest (APY effectively 0%). Mercury's standard banking is non-interest-bearing, but Mercury Treasury yields are published and variable (up to about 3.96% as of late September 2026, tiered by balance).
Mercury Vault distributes funds across partner banks, extending FDIC coverage up to $5 million, benefiting venture-backed companies maintaining large cash reserves. Novo offers standard $250,000 FDIC coverage through Middlesex Federal Savings, F.A., which suits most small businesses with typical cash flow patterns.
Software connections and accounting
How your banking platform connects to accounting software determines whether reconciliation takes minutes or hours each month.
Novo prioritizes breadth through Zapier middleware, connecting to thousands of applications. Novo's Xero connection offers hourly syncing, more frequent than Mercury's daily sync. Novo connects directly to Stripe, Square, and PayPal, enabling automatic reconciliation of payment processor deposits. Zapier serves as middleware for additional connections, starting at $19.99 per month billed annually.
Mercury focuses on direct integrations with major accounting platforms, including QuickBooks Online, Xero, and NetSuite. Those accounting connections are available on every Mercury plan at no extra charge. Transactions sync daily and support general ledger categorization. Mercury also offers a built-in invoicing feature with Stripe integration, while other workflows may require manual exports depending on the tools a business uses.
Transaction fees and payment methods
The way each platform handles transfers and payments can meaningfully affect costs, especially for businesses that move money frequently.
Novo does not charge fees for standard domestic transactions. Outgoing wire fees are shown in the app before you confirm, and international transfers are routed through Wise. Novo also does not apply foreign transaction fees on debit card purchases.
Mercury includes domestic wire transfers at no additional cost, which can be helpful for businesses that rely on wires as part of their regular payment flow. International wires are priced at 1% for currency conversion, with an optional $15 fee to cover recipient intermediary charges on USD international wires. ACH transfers are included at no extra cost.
Team management and user access controls
Mercury and Novo take fundamentally different approaches to user permissions.
Mercury offers roles including Admin, Bookkeeper (view-only), and Custom Users with configurable permissions. The platform supports card-only access for team members needing spending capability without full account visibility. Spending controls include time-based limits, category restrictions, merchant-level controls, and multi-level approval workflows for bill pay.
Novo takes a simpler approach to user access. Adding a user grants full account access, without options for partial or read-only permissions. To offset this, Novo provides strong card-level controls, including category-based limits, per-transaction caps, location-based controls, and daily, weekly, or monthly spending limits. Real-time fraud alerts, in-app card freezes, and activity notifications help teams monitor spending and respond quickly.
Business tools and additional services
Both platforms extend beyond basic banking, but they differ in how those tools are delivered and integrated.
Mercury positions itself as a broader financial operations platform. Recent product additions include bill pay with automation features, built-in invoicing, and reimbursement tools designed to support growing teams. Mercury also offers a perks program with discounts on startup tools, along with access to working capital loans for eligible ecommerce businesses with higher annual revenue (availability varies by state). Corporate cards include cashback and do not require a personal guarantee.
Novo focuses on lightweight tools that support everyday money management. Its "Reserves" feature allows businesses to set aside funds internally for things like taxes, payroll, or future expenses by automatically allocating portions of incoming deposits. Novo also offers an add-on payroll service that supports multi-state tax filing. Rather than offering lending directly, Novo connects businesses with partner providers. Its AI-powered bookkeeping tool helps categorize expenses automatically and improves over time based on user corrections, without requiring manual rules.
Choosing the right platform
The right platform depends on your business structure, transaction patterns, and team size.
Choose Mercury if:
Your business is incorporated (LLC or corporation with EIN)
You maintain balances above $250,000 and need extended FDIC coverage
You process frequent wire transfers
You're planning rapid growth and need venture capital support
You need role-based permissions for team members
Choose Novo if:
You're a sole proprietor or freelancer
You want no monthly fees and no minimum balances
You prioritize built-in invoicing and AI bookkeeping at no additional cost
Your team structure is simple (no need for tiered permissions)
You prefer Zapier-based integrations for flexibility
Making your platform decision
Both Mercury and Novo are strong options, but each reflects a different set of trade-offs. Mercury is designed for incorporated businesses that need more advanced controls, while Novo prioritizes accessibility and simplicity for solo operators and freelancers. Depending on how your business is structured—and how many people need access—those differences can matter.
For businesses looking for flexibility without giving up control, it can be helpful to consider platforms built around cash flow organization and shared access from the start. Relay supports both sole proprietors and incorporated businesses, while offering role-based permissions and spending controls that scale as teams grow.
Ultimately, the right banking platform is the one that fits how your business actually runs today—and can adapt as it evolves. If you want to explore a more structured approach to managing business finances, you can take a closer look at how Relay is designed to support that.
Frequently asked questions
Is Novo FDIC insured?
Novo is a financial technology company, not a bank. Deposits held through Novo are eligible for FDIC insurance up to $250,000 through its partner bank, Middlesex Federal Savings, F.A. (Member FDIC). That standard coverage fits most small businesses; companies parking balances well above $250,000 are the ones that tend to look for a sweep program that spreads deposits across multiple banks.
Does Mercury or Novo pay interest on business checking?
Neither pays interest on a standard business checking balance—Novo Business Checking is 0% APY, and Mercury's standard banking is non-interest-bearing. Mercury does offer a separate Treasury product for idle cash, with published, variable yields (up to about 3.96% as of late September 2026). If earning on reserves matters to you, that belongs on your comparison list alongside everyday checking.
What's the main difference between Mercury and Novo?
Eligibility and depth. Mercury is built for incorporated businesses (LLCs and corporations with an EIN) and leans toward startups that want API access, extended FDIC coverage, and role-based team controls. Novo is open to sole proprietors and unincorporated businesses and keeps the toolset lightweight—invoicing, Reserves, and AI bookkeeping—without tiered permissions.
Is there a business bank account that works for both sole proprietors and incorporated businesses?
Yes. Relay is open to both sole proprietors and incorporated businesses, so you don't have to switch platforms if your entity type changes. It pairs multiple checking accounts for separating money by purpose with role-based permissions and spending controls that scale as the team grows—useful if you want Novo's accessibility and Mercury's team controls in one place.
BANKING FOR THE SELF-MADE
Get started in minutes.
