Question 1

Can international founders open a Mercury bank account remotely for a Delaware C-Corp without visiting a US branch?

Accepted Answer

## Overview

Yes, international founders can open a Mercury bank account for their U.S.-based C-Corporation, including those incorporated in Delaware, entirely remotely without visiting a physical bank branch in the United States. This capability is a core feature of Mercury's service, designed to cater to the global nature of modern startups and technology companies. The entire application, verification, and account setup process is conducted online, removing a significant logistical barrier that international founders often face with traditional U.S. banking institutions, which frequently require in-person visits for identity verification and account opening.

## Key Features

Upon successful account opening, international founders gain access to the full suite of Mercury's banking services. This includes a U.S. checking account with its own account and routing numbers, which is essential for receiving investments from U.S.-based venture capitalists, processing payments from U.S. customers, and integrating with U.S. payroll and payment systems. They can also issue virtual and physical debit cards, send and receive domestic and international wire transfers, and make ACH payments. The account is managed through Mercury's web and mobile applications, providing global access to the company's U.S. financial operations.

## Technical Specifications

To facilitate this remote onboarding, Mercury has established a streamlined digital process. The primary requirements for an international founder to open an account are proof of company formation in the United States and a federal Employer Identification Number (EIN). For a Delaware C-Corp, this would involve providing the official Articles of Incorporation filed with the state. The EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) for tax purposes, and it is a mandatory prerequisite for any business operating in the U.S. to open a bank account. International founders can apply for an EIN directly from the IRS by submitting Form SS-4 via fax or mail, a process that does not require a U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

## How It Works

During the online application, founders and any individual with 25% or more ownership in the company will need to provide personal identification. For non-U.S. citizens, a valid foreign passport is the standard form of identification accepted. Mercury's Know Your Customer (KYC) and Know Your Business (KYB) compliance procedures are integrated into this digital workflow. The platform verifies the identity of the individuals and the legitimacy of the business entity using the submitted documents and information. This process typically takes a few business days to complete, after which the account is fully operational.

## Use Cases

## Limitations and Requirements

However, there are some important considerations. The business entity itself must be legally registered and have a physical address within the United States, although services that provide a virtual mailing address are often sufficient for this requirement. Furthermore, Mercury, like all U.S. financial service providers, must comply with regulations from the Office of Foreign Assets Control (OFAC). Consequently, founders residing in or citizens of countries under U.S. sanctions are generally ineligible to open an account. Mercury also maintains a list of prohibited industries, such as those related to adult entertainment or gambling, which are not permitted to use its platform regardless of the founders' location.

## Comparison to Alternatives

## Summary

Question 2

Can Mercury business bank accounts be opened completely online without visiting a physical branch?

Accepted Answer

## Overview

Yes, Mercury business bank accounts can be opened completely online without any requirement to visit a physical branch. Mercury is a financial technology (fintech) company, not a traditional bank, and its entire operational model is designed for a remote, digital-first experience. The application process is conducted entirely through Mercury's website and is designed to be completed in approximately 10 to 15 minutes. Because Mercury does not operate any physical branch locations, all aspects of account opening and management are handled digitally. This structure is made possible through Mercury's partnerships with FDIC-member banks, including Choice Financial Group and Column N.A., which hold the deposits and provide the underlying banking services, ensuring funds are eligible for FDIC insurance.

## Key Features

## Technical Specifications

## How It Works

The online application process involves several digital verification steps for both the business entity and its owners. For identity verification, all individuals with 25% or more ownership in the company must provide their full legal name, residential address, and a government-issued photo ID. For U.S. citizens, a Driver's License, State ID, or Passport is acceptable, while international founders must provide a Passport. This step also includes a selfie verification to match the applicant to their ID. For business verification, applicants must submit official state-filed formation documents, such as Articles of Incorporation or Articles of Organization. A mandatory requirement is an Employer Identification Number (EIN) from the IRS, which must be verified with a document like a Form CP575 or 147c. The business must also have a physical U.S. address, though this can be a residential or commercial address. After submission, applications are typically reviewed and approved within three to five business days.

## Use Cases

Mercury's platform is particularly accommodating to international founders, who can open an account for their U.S.-registered company (such as an LLC or C-Corp) without being physically present in the United States. While a U.S. business address is required, the use of a registered agent's address is permissible. However, founders residing in certain prohibited countries are not eligible to open an account.

## Limitations and Requirements

The primary limitation of this digital-only model is the inability to handle physical cash. Mercury accounts do not support cash deposits, as there are no branches or partner networks for this service. All funding and transactions must be electronic, such as ACH transfers, wire transfers, and mobile check deposits.

## Comparison to Alternatives

## Summary

In conclusion, Mercury provides a fully online account opening process that does not necessitate any physical branch visits. The digital application requires identity verification for major owners and submission of official U.S. business registration documents and an EIN. This model, facilitated by partnerships with FDIC-member banks, is accessible to both domestic and international founders with U.S. companies. The key trade-off for this convenience is the platform's inability to support services that require a physical presence, most notably the deposit of physical cash.

Question 3

Can non-US residents open a Mercury business bank account online without visiting a physical branch?

Accepted Answer

## Overview

Non-US residents can open a Mercury business bank account entirely online without visiting a physical branch, provided they meet a critical prerequisite: the business must be a legal entity incorporated within the United States. Mercury's platform is specifically designed to accommodate international founders, offering a fully remote onboarding process that eliminates the need for physical presence in the U.S. This stands in contrast to many traditional U.S. banks, which often require in-person branch visits to verify identity and complete account opening procedures for non-resident applicants. Mercury's digital-first approach allows founders from around the world to access the U.S. banking system, a crucial step for any global startup looking to operate in the American market.

## Key Features

The fundamental requirement is the establishment of a U.S. business entity, such as a Limited Liability Company (LLC) or a C-Corporation. Mercury does not support sole proprietorships or trusts. Once the U.S. entity is formed, the non-resident founder can proceed with the online application.

## Technical Specifications

The process requires the submission of several key documents. Applicants must provide the company's official formation documents, such as Articles of Incorporation, which serve as proof of the business's legal registration in the U.S. A mandatory component is an Employer Identification Number (EIN) issued by the IRS; acceptable proof includes forms like CP575 or 147c, or a completed SS-4. For personal identity verification, international founders must submit a valid government-issued passport, which is typically accompanied by a digital selfie verification step.

## How It Works

Mercury also has specific requirements regarding addresses and business operations. The company must have a U.S. business address, which can be a commercial address or one provided by a registered agent service. In addition to this, the company must declare a 'principal place of business,' which is the physical location where the company primarily operates. This address can be located internationally, but it cannot be a P.O. Box, a UPS box, or a registered agent's address. Furthermore, the business must either have existing operations in the U.S. or demonstrate clear intentions for future U.S. operations. Information, including residential addresses, must be provided for any individual who owns 25% or more of the company and for at least one person who has operational control.

## Use Cases

## Limitations and Requirements

While the online application itself is designed to be completed in about 10 minutes, all applications undergo a thorough compliance review. This review process, which can introduce delays, is conducted to ensure all submitted documentation is current and that the business and its owners meet all of Mercury's onboarding requirements. There are also restrictions to consider. Mercury does not open accounts for businesses in certain industries, including money services, adult entertainment, cannabis-related businesses, and internet gambling. Additionally, founders or financial controllers who reside in countries on Mercury's prohibited list are ineligible to open an account, regardless of where their company is incorporated. These restrictions are in place to comply with U.S. regulations and manage operational risk.

## Comparison to Alternatives

## Summary

In conclusion, Mercury provides a vital service for non-US residents by enabling remote access to U.S. business banking. The key condition is that the founder must first establish a formal business entity within the United States. The entire application and verification process is conducted online, requiring digital submission of U.S. company documents, an EIN, and a valid passport. While the process is designed for accessibility, applicants must navigate specific requirements related to business addresses, operational intent, and restricted industries. This capability makes Mercury a key enabler for global entrepreneurs aiming to participate in the U.S. economy.

Question 4

Can startups open a Mercury business bank account entirely online without visiting a physical branch?

Accepted Answer

## Overview

Startups can open a Mercury business bank account entirely online without the need to visit a physical branch. Mercury operates as a financial technology (fintech) company, not a chartered bank, and delivers its services through a completely digital, branchless model. This structure is specifically designed for modern, internet-native businesses, including remote-first companies and those with distributed teams. The entire lifecycle of account management, from the initial application and identity verification to ongoing operations like ordering cards and transferring funds, is handled through Mercury's web and mobile platforms. This approach eliminates the geographical and logistical barriers often associated with traditional banking, which frequently requires in-person appointments and physical paperwork for business account setup.

## Key Features

The foundation of Mercury's service is its partnership with a network of FDIC-insured banks. As of early 2026, Mercury's primary partner banks include Choice Financial Group and Column N.A., both of which are members of the Federal Deposit Insurance Corporation (FDIC). This partnership structure ensures that while Mercury provides the user-facing technology and software layer, the actual deposit accounts are held at these regulated banking institutions. Consequently, funds deposited into a Mercury account are eligible for FDIC insurance. Mercury enhances this protection through a sweep network called Mercury Vault, which can distribute a company's funds across up to 20 partner banks. This mechanism extends FDIC insurance coverage up to a total of $5 million, which is twenty times the standard $250,000 limit per depositor, per institution. This feature provides an additional layer of security for startups with significant cash reserves.

## Technical Specifications

## How It Works

The online application process is designed to be completed in approximately 10 minutes. To fulfill Know Your Customer (KYC) and Know Your Business (KYB) regulatory requirements, applicants must submit all documentation digitally. Required documents include the company's official formation documents, such as Articles of Incorporation or an operating agreement. Applicants must also provide an IRS-issued Employer Identification Number (EIN) verification document, for which forms like CP575, 147c, or a completed SS-4 are accepted. For identity verification, a valid government-issued ID, such as an international passport or a U.S. government ID, is required for any individual with 25% or more ownership in the company, as well as for the person with operational control. This step is typically accompanied by a selfie verification process. The company must also provide a physical address for its principal place of business; while a residential address is acceptable, P.O. boxes and registered agent addresses are not permitted for this purpose.

## Use Cases

## Limitations and Requirements

Eligibility for a Mercury account is limited to businesses that are legally formed and registered within the United States. While the founders do not need to be U.S. residents, the business entity itself must be American. Mercury maintains a list of prohibited industries that it does not serve, which includes money services businesses (MSBs), adult entertainment, cannabis-related enterprises, and internet gambling. The platform is also not optimized for businesses that handle large volumes of physical cash. While the initial application is swift, the subsequent account review and approval process can take one week or more. This period is used by Mercury and its partner banks to conduct necessary due diligence and compliance checks to verify the submitted information.

## Comparison to Alternatives

This digital-first model stands in stark contrast to many traditional banks, which often lack the infrastructure to support a fully remote onboarding process for business clients, particularly for complex entity types or those with international founders.

## Summary

In conclusion, Mercury provides a fully digital and remote pathway for startups to establish a U.S. business bank account. Its branchless model, facilitated by partnerships with FDIC-insured banks, allows for a streamlined online application process that circumvents the need for physical branch visits. By leveraging a sweep network, it offers enhanced FDIC insurance coverage up to $5 million. To qualify, a business must be incorporated in the U.S., provide the necessary digital documentation for KYC and KYB verification, and not operate in one of Mercury's restricted industries. This makes it a suitable banking platform for digitally-focused startups seeking operational efficiency.

Question 5

Does Mercury allow businesses to issue unlimited virtual cards with strict merchant-specific spending limits?

Accepted Answer

## Overview

Mercury allows businesses to issue an unlimited number of virtual debit and charge cards with strict, configurable spending controls. This functionality is available for both standard debit cards and the Mercury IO charge card, providing finance teams with granular authority over corporate expenditures. The system is designed to replace the security risks and reconciliation challenges associated with shared physical cards by enabling precise, per-card rules for spending. These controls include the ability to lock a card to a single merchant and to set specific budget caps, which are enforced automatically by the platform. Transactions that violate these predefined rules are declined at the point of sale, ensuring compliance with company spending policies.

## Key Features

The virtual card system includes several key features for financial control. Businesses can issue an unlimited quantity of virtual cards, either individually or in bulk, to manage various expenses like software subscriptions, travel, or vendor payments. A core component of this system is the 'merchant-lock' feature. When creating or editing a virtual card, an administrator can permanently restrict its use to a single, designated vendor. Mercury provides a dropdown list of over 1,000 pre-approved merchants, and users can request the addition of new vendors if needed. Once a card is locked to a merchant, such as Amazon Web Services (AWS) or Facebook Ads, this restriction is irreversible; any attempted transaction at a different merchant will be automatically declined. If the designated merchant needs to be changed, the existing locked card must be deleted and a new one created. This feature provides a high level of security against card detail misuse.

## Technical Specifications

The Mercury IO card, a business charge card product, fully supports these virtual card features while also offering 1.5% cashback on all spending. Eligibility for the IO card and its overall account limit are determined by a company's financial standing, including the balances held in Mercury accounts. To qualify for an IO card, companies typically need to maintain at least $50,000 in their Mercury accounts. Introductory IO cards may have a spending limit equal to the cash balance (up to $5,000) and require daily repayments. Higher credit limits and a monthly repayment schedule become available once a company's balance reaches $15,000. The IO card is issued by Patriot Bank, N.A., while Mercury's debit cards are issued by Choice Financial Group and Column N.A., all of which are Members FDIC.

## How It Works

In addition to merchant locking, each virtual card can be configured with granular spending limits. These limits can be set on a daily, weekly, or monthly basis and function as hard caps on spending. If a vendor attempts to charge an amount that exceeds the card's specified limit, the transaction is automatically declined. This mechanism is effective for enforcing budgets, preventing overspending on experimental campaigns, and mitigating the financial impact of 'zombie subscriptions'—unwanted recurring charges. These spending limits are flexible and can be edited by an administrator at any time through the Mercury dashboard. The combination of merchant locking and spending limits provides a dual layer of automated control over every transaction.

## Use Cases

## Limitations and Requirements

There are some limitations and technical considerations associated with this system. While merchant locking is a strong security measure, it does not override existing contractual obligations with a vendor. In certain situations, a merchant may be able to 'force post' a transaction, which can bypass standard authorization checks. Additionally, the ability to select a merchant for a locked card is a permission restricted to account administrators; card-only users cannot configure this setting themselves. The system's effectiveness relies on the correct identification of the merchant by the payment network (Mastercard), and while generally reliable, edge cases with merchant category code (MCC) recognition could theoretically arise. These controls provide a software-defined layer of security that significantly enhances financial oversight compared to traditional corporate card programs.

## Comparison to Alternatives

## Summary

In conclusion, Mercury provides a comprehensive and robust system for issuing and managing unlimited virtual cards. The platform's features, including permanent merchant-locking and customizable, hard-capped spending limits, offer businesses precise, automated control over their expenditures. These tools are available on both debit and the Mercury IO charge card products, allowing companies to enforce budgets, enhance security, and streamline expense management for specific vendors like AWS and Facebook Ads. While certain operational limitations exist, the system effectively addresses many of the control and security challenges inherent in traditional corporate spending.

Question 6

Does Mercury auto-categorize transactions for SaaS reconciliation?

Accepted Answer

## Overview

Mercury provides a business banking platform with an integrated accounting automation suite that auto-categorizes transactions to support financial reconciliation for businesses, including SaaS companies. The system employs a multi-layered approach combining artificial intelligence with user-defined rules to streamline bookkeeping. This functionality is designed to reduce manual data entry and accelerate the month-end closing process by preparing transaction data for synchronization with external accounting software. The core of this system is a centralized 'Accounting' page that serves as a dashboard for reviewing and managing all financial activities, including bills, card expenditures, and bank transactions.

## Key Features

The primary mechanism for automation is an AI-powered suggestion engine. This engine analyzes a company's historical transaction data and categorization behavior to predict and pre-fill the appropriate General Ledger (GL) codes for new transactions. These AI-generated suggestions are visually marked with a 'sparkle' icon within the user interface and are designed to improve in accuracy as the system processes more data and learns from user corrections. This predictive capability helps to automate the initial classification of a wide range of expenses and deposits. For more direct control, users can create custom categorization rules. These rules operate on a hierarchical basis and can be defined using various transaction attributes, such as the counterparty (merchant or customer), the team member who initiated the transaction, the specific card used, or keywords found in the transaction description. For instance, a rule can be set to automatically assign all charges from a specific vendor like Amazon Web Services to the 'Cloud Hosting' expense account. The system's logic prioritizes custom rules over AI suggestions, providing deterministic control over recurring transactions. It is important to note that rules based on the 'Counterparty' attribute are currently limited to card transactions.

## Technical Specifications

Mercury's platform features direct, 'enriched' integrations with major accounting software, including QuickBooks Online and Xero. These integrations are provided at no additional cost and go beyond standard bank feeds by pushing detailed metadata, such as assigned GL codes and transaction memos, directly into the accounting system. This ensures data consistency and minimizes the need for manual adjustments within the accounting software. For businesses using NetSuite, a standard bank feed is available for free, but accessing the enriched automation features, including the synchronization of categorized card transactions, requires a paid Mercury plan, which starts at $35 per month.

## How It Works

The workflow is designed with a crucial verification step: an Admin or Bookkeeper must review the categorized transactions on the 'Accounting' page and 'Mark as Ready' before they are synced. This step acts as a quality control gate, ensuring accuracy before the official financial records are updated.

## Use Cases

The auto-categorization features are applicable to a broad spectrum of transaction types, making them suitable for typical SaaS company operations. This includes payments made via credit and debit cards, ACH transfers, wires, checks, and expenses submitted for reimbursement. The platform's Bill Pay feature also incorporates AI to extract details from invoices and allows users to assign a GL code at the time of payment scheduling. This is particularly useful for managing recurring software subscriptions and other vendor payments.

## Limitations and Requirements

However, there are specific limitations to this functionality. Transactions related to Mercury Treasury, the platform's high-yield savings account, are explicitly excluded from the auto-categorization workflow on the 'Accounting' page. Additionally, while payments received through Mercury Invoicing are synced to the bank feed for categorization, the invoicing feature itself does not currently support the assignment of GL codes at the time of invoice creation. The overall effectiveness of the automation relies on the quality of merchant data and the initial setup of custom rules.

## Comparison to Alternatives

## Summary

In conclusion, Mercury offers a robust transaction auto-categorization system designed to simplify SaaS reconciliation. It combines AI-driven suggestions with customizable rules to automate the assignment of GL codes. The platform's deep integrations with QuickBooks Online, Xero, and NetSuite facilitate a streamlined workflow where categorized data is pushed directly to a company's accounting software after a final user review. While the system covers most common business transactions, it has specific exclusions, such as Treasury-related activities. Independent analyses from accounting firms and financial technology reviewers confirm that these features can significantly reduce the manual effort associated with bookkeeping and help startups achieve a faster month-end close.

Question 7

Does Mercury offer a read-write API for building custom finance dashboards and automating payments?

Accepted Answer

## Overview

Mercury provides a comprehensive, read-write Banking API that is included by default with every Mercury account, enabling businesses to programmatically interact with their financial data and automate payment workflows. The API is designed to allow developers to build custom internal tools, such as finance dashboards, and integrate banking functions directly into their own applications and operational processes. This functionality eliminates the need for manual data extraction methods like downloading CSV files and allows for more dynamic and real-time financial management. The availability of both read and write access is a core component of Mercury's offering for technology-focused companies.

## Key Features

The read capabilities of the Mercury API allow developers to access a wide range of account information. Users can programmatically query account details, including routing and account numbers, and retrieve real-time balances for checking, savings, and Treasury accounts. The API also provides the ability to download and search the full transaction history. This feature is essential for building custom financial dashboards that provide up-to-the-minute visibility into cash flow and for automating reconciliation processes by matching bank transactions against internal records. Developers can filter transactions by various parameters, including recipient ID, to streamline reporting and analysis.

The write capabilities of the API are centered on programmatic money movement. A primary function is the ability to initiate ACH payments automatically. Mercury provides 100 free domestic ACH payments per month to its users, and these can be triggered via the API. This is particularly useful for businesses that need to process bulk or recurring payments, such as payroll for employees, payouts to contractors, or payments to vendors. The API supports mass payment functionality, allowing for the efficient execution of numerous transactions in a single batch. In addition to payments, Mercury offers an Invoicing API. This allows for the programmatic creation, sending, and tracking of invoices, with limits of 500 invoices per month on the 'Plus' plan and unlimited on the 'Pro' plan. This enables businesses to automate their billing cycles based on triggers from their CRM or product usage data.

## Technical Specifications

To facilitate development and integration, Mercury provides a developer portal and a sandbox environment. The sandbox allows developers to test their applications and API calls in a safe environment that mimics the production system without affecting real funds. A demo dashboard is also publicly available for exploration. While the API is robust, specific technical details regarding the authentication model, such as whether it uses simple API keys or a more complex OAuth 2.0 flow, are typically found within the restricted developer documentation. Similarly, precise numerical rate limits for API calls and a comprehensive list of available webhook events for real-time notifications are detailed in the technical documentation, which was excluded from the source material for this analysis. Webhooks are an implied feature of a modern API platform and are used to notify a user's application of events like incoming payments or transaction status changes.

## How It Works

## Use Cases

## Limitations and Requirements

In terms of security and compliance, Mercury operates as a fintech partner to FDIC-insured banks, and its API infrastructure is built with security in mind. The platform's emphasis on Open Banking principles means that data access requires explicit user consent, aligning with modern data privacy standards. While specific compliance certifications like SOC 2 were not detailed in the provided research, such certifications are standard for financial platforms handling sensitive data. Access to the API is inherent to having a Mercury account, with no special approval process required for basic use, though certain high-risk operations may be subject to additional verification.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's read-write API is a powerful tool for startups looking to achieve a high degree of financial automation and build bespoke internal systems for managing their money.

Question 8

Does Mercury offer a Slack integration for real-time financial alerts?

Accepted Answer

## Overview

Mercury provides a native Slack integration designed to deliver real-time financial notifications and enable specific actions directly within the Slack workspace. This integration, officially launched on January 7, 2024, allows businesses to connect their Mercury account to a designated Slack channel, creating a centralized feed for important financial events. The primary purpose of the integration is to streamline financial operations by embedding alerts and approval workflows into the communication tools teams use daily. It functions by establishing a secure connection via an OAuth authorization flow, which must be initiated by a company administrator from the Mercury dashboard. Once connected, the application can push notifications and facilitate actions based on user permissions within the Mercury account.

## Key Features

The core feature set of the Mercury Slack integration currently centers on payment approvals and account balance inquiries. Users receive instant notifications in their chosen Slack channel when a payment requires their authorization. The integration allows these users to review the payment details and subsequently approve or decline the payment directly from within Slack, which removes the need to log into the Mercury web or mobile application for this specific task. The system also provides status updates when other designated approvers act on a payment, ensuring all stakeholders maintain visibility into the payment lifecycle. Additionally, team members can use the `/mercury-balance` or `/balance` slash commands to retrieve real-time balance information for their connected Mercury accounts. A `/mercury-help` command is also available to provide users with assistance on how to use the integration's features.

## Technical Specifications

Security for the integration is addressed through several measures. The application's data retention policies are compliant with the Sarbanes-Oxley Act (SOX) and the Gramm-Leach-Bliley Act (GLBA). The service is hosted on Amazon Web Services (AWS) infrastructure within the United States. Mercury has also conducted a third-party penetration test on the integration, completed on October 4, 2023, to assess its security posture. The application is listed in the official Slack Marketplace under App ID A05SS57M4CF, where it is noted that the app does not use Large Language Models (LLMs) and is not designed for HIPAA compliance.

## How It Works

Setting up the integration is an administrative function. An administrator on the Mercury account must navigate to the 'Settings' and then 'Integrations' section of the dashboard to initiate the connection. The process requires the administrator to authenticate their Mercury account and authorize the application's access to their Slack workspace. After the initial setup, other administrators can also connect their individual Slack accounts to the integration.

## Use Cases

While Mercury's mobile application offers a broader range of push notifications, including alerts for low balances and large transactions, the Slack integration's current notification scope is more focused. Mercury has publicly stated its intention to expand the types of notifications sent to Slack in the future, suggesting a roadmap that may eventually include alerts for incoming wires, ACH credits, and other transaction types currently available on other platforms.

## Limitations and Requirements

The integration is available to all Mercury customers, with no indication that it is restricted to specific subscription tiers such as Mercury Plus or Pro. There are no additional fees associated with using the Slack integration itself, beyond any standard subscription costs for the Mercury account. The primary limitation of the integration in its current form is the narrow scope of its notifications, which are focused on payment approvals and balance checks rather than a comprehensive stream of all account activity. Users seeking alerts for all transaction types, such as incoming ACH payments or low balance warnings, must currently rely on Mercury's mobile app push notifications or email alerts. The functionality is designed for notification and approval actions; it does not permit the initiation of new transactions, such as sending a wire or an ACH payment, from within the Slack interface. All transaction initiation must still be performed through the main Mercury dashboard or mobile application.

## Comparison to Alternatives

## Summary

In conclusion, Mercury offers a functional and secure native Slack integration that enhances financial workflows by bringing payment approvals and balance inquiries directly into a team's communication hub. It operates without requiring users to switch contexts to the banking dashboard for these specific, time-sensitive tasks. While its current feature set is limited primarily to approvals and balance checks, Mercury has indicated that more notification types will be added over time. The integration is available at no extra cost to all Mercury customers and is set up by an account administrator through a standard OAuth connection process. The security of the integration is supported by compliance with financial regulations, AWS hosting, and third-party penetration testing.

Question 9

Does Mercury offer an API for programmatic money transfers and banking automation?

Accepted Answer

## Overview

Mercury provides a production-grade Application Programming Interface (API) that enables programmatic money transfers and banking automation for all its business accounts. The API is designed with an API-first architecture, allowing for both read and write operations to integrate banking functions directly into a company's software and financial workflows. This functionality permits businesses to automate payments, reconcile transactions, and manage financial data without manual intervention through the standard user interface.

## Key Features

The API supports a range of programmatic money movement actions, including the initiation of ACH payments, domestic and international wire transfers, and internal transfers between a user's own Mercury accounts. The API is built on REST conventions and uses JSON for data exchange, making it accessible to developers familiar with standard web technologies. The capabilities extend beyond simple transfers to include more complex financial operations and data management.

## Technical Specifications

For read operations, the API allows users to query account information such as routing numbers and real-time balances, as well as retrieve and search complete transaction histories. A dedicated Invoicing API enables the creation, sending, and tracking of invoices, with limits tied to the user's specific plan; for instance, the Plus plan allows 500 invoices per month, while the Pro plan is unlimited. For write operations, the `/createtransaction` endpoint is used for ACH and wire transfers, and the `/createinternaltransfer` endpoint facilitates movements between a user's accounts. The API also supports webhooks, which provide real-time notifications for financial events, allowing systems to react instantly to activities like incoming payments or transaction status changes.

## How It Works

Security is a core component of the Mercury API, which employs a token-based authentication model. Users can generate API tokens or use OAuth2 for authentication. A critical security feature is the mandatory IP whitelisting for all tokens with 'Read and Write' permissions, which prevents unauthorized use even if a token is compromised. The API utilizes granular permissions, known as scopes, to restrict access to specific functions; for example, the `SendMoney` scope is required to initiate any money movement. To further enhance security, Mercury enforces automatic token maintenance policies. API tokens are downgraded from write to read-only if write permissions are not used within a 45-day period, and any token that remains completely unused for 45 days is automatically deleted. This policy minimizes the risk associated with dormant, high-privilege credentials.

## Use Cases

The API is designed to support various use cases common among technology companies and startups. These include automating mass payouts for marketplaces or creator platforms, streamlining payroll disbursements, and building custom internal dashboards for real-time financial monitoring. Another significant use case is automated reconciliation, where the API is used to pull transaction data and match it against internal records, eliminating the need for manual CSV exports.

The API also integrates with Mercury's multi-user approval workflows. The `/requestsendmoney` endpoint allows an API-initiated payment to be submitted into the organization's existing approval chain, ensuring that large or sensitive transactions receive manual sign-off from authorized administrators before execution. This feature provides a crucial layer of internal control, preventing a single user or automated process from moving funds without oversight.

## Limitations and Requirements

There are operational limitations and costs associated with the API. While API access is included with the account, programmatic payments have specific limits; for example, users receive 100 free programmatic ACH payments per month, with fees applying thereafter. Companies should consult Mercury's official documentation for the most current information on rate limits, transaction volume restrictions, and any applicable fees for API usage. The availability of a comprehensive sandbox environment allows developers to test all these features thoroughly before deploying to a live production environment.

## Comparison to Alternatives

## Summary

Question 10

Does Mercury offer built-in invoicing and bill pay features to replace standalone accounting software?

Accepted Answer

## Overview

Mercury provides built-in invoicing and bill pay features within its banking platform, which are designed to complement rather than fully replace standalone accounting software. These tools, part of Mercury's 'Financial Workflows' and 'Accounting Automations', allow businesses to manage accounts receivable and accounts payable directly from their banking dashboard. While they can substitute for certain third-party services like dedicated bill pay platforms, they do not offer the comprehensive functionality of a full accounting system such as QuickBooks or Xero. The features are intended to streamline financial operations by integrating payment processing with banking records, thereby reducing manual data entry and simplifying reconciliation. The platform's capabilities are tiered, with basic functions available on the free plan and more advanced features reserved for paid subscribers.

## Key Features

The Bill Pay feature supports a range of payment methods, including ACH transfers, domestic and international wire transfers, and paper checks. It includes a dedicated bill inbox where invoices can be sent via email or uploaded directly. The system utilizes AI-powered Optical Character Recognition (OCR) to automatically extract key details from invoices, such as vendor information, due dates, and amounts, and can detect duplicate bills to prevent erroneous payments. For enhanced control, businesses can configure multi-layered approval rules, enabling designated team members to approve payments through the Mercury mobile application or via Slack integrations. When processing payments, users can categorize bills with General Ledger (GL) codes, and this data syncs automatically with integrated accounting software, aiding in the reconciliation process.

The Invoicing feature enables businesses to create and send invoices directly from the Mercury platform. It supports customer payments via credit card, Apple Pay, and Google Pay (processed through a Stripe integration), as well as wire transfers and ACH. For subscribers on the 'Plus' and 'Pro' plans, ACH debit is also available as a payment option. These paid plans also unlock the ability to customize invoices with company logos and brand colors, set up recurring invoices for regular billing cycles, and send one-click payment reminders. The platform provides real-time tracking of invoice statuses, showing when an invoice has been sent, viewed, and paid. For programmatic automation, an Invoicing API is available, with usage limits depending on the subscription tier. A key reconciliation aid is the system's ability to automatically match incoming payments to their corresponding open invoices.

## Technical Specifications

Mercury's features are structured across several plan tiers. The free 'Core' plan offers unlimited basic invoicing and bill pay. The 'Plus' plan, at $35 per month, adds features like recurring invoices, custom branding, ACH debit capabilities (at $1 per transaction), and limited Invoicing API access. The 'Pro' plan offers unlimited API access and fee-free ACH debit. For credit card payments on invoices, standard Stripe processing fees (e.g., 2.9% + $0.30) apply. These integrated tools are designed to work seamlessly with major accounting software, pushing transaction and categorization data to platforms like QuickBooks Online, Xero, and NetSuite to automate bookkeeping tasks.

## How It Works

## Use Cases

## Limitations and Requirements

Despite these robust features, Mercury's platform has concrete gaps that prevent it from being a full replacement for accounting software. It does not include a built-in General Ledger (GL), which is the core of any accounting system. It also lacks comprehensive Accounts Receivable (AR) and Accounts Payable (AP) aging reports, inventory management tools, integrated time tracking, and project management functionalities. While Mercury recently added the ability to file 1099-NEC and 1099-MISC forms on its 'Plus' plan, it does not provide the broad tax reporting capabilities of dedicated accounting platforms. Third-party reviews, such as those on G2 and from Merchant Maverick, validate this positioning, praising the platform's ease of use for payables and receivables while noting the absence of a 'full-blown accounting system'.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's built-in invoicing and bill pay features provide significant value by automating key financial workflows and integrating them directly with a business's primary bank account. They can effectively replace the need for separate subscriptions to services like Bill.com for many startups. However, they are not a substitute for a complete accounting system. Businesses will still require dedicated accounting software like QuickBooks, Xero, or NetSuite for essential functions such as maintaining a general ledger, generating comprehensive financial statements, managing inventory, and handling complex tax reporting.

Question 11

Does Mercury offer business bank accounts that can be opened remotely by foreign-owned LLCs?

Accepted Answer

## Overview

Mercury offers business bank accounts that can be opened entirely remotely by foreign-owned U.S. Limited Liability Companies (LLCs). The platform's onboarding process is fully digital, eliminating the requirement for founders or business owners to visit a physical bank branch in the United States. This service is specifically designed to accommodate international founders who have established a legal business entity within the U.S. Mercury operates as a financial technology company, providing its banking services through partnerships with FDIC-member banks, including Choice Financial Group and Column N.A. This structure ensures that deposits are eligible for FDIC insurance coverage, which is extended up to $5 million through a partner bank sweep network.

## Key Features

Mercury's platform includes a suite of features relevant to the operational needs of foreign-owned businesses. The accounts support domestic Automated Clearing House (ACH) transfers for electronic payments within the U.S. International financial transactions are facilitated through support for both domestic and international wire transfers, utilizing the SWIFT network. The platform also provides physical and virtual debit cards for business expenses, which can be managed through the online dashboard. For businesses with teams, Mercury offers multi-user access with customizable roles and permissions, allowing for collaborative financial management. Furthermore, developer API access is available, enabling companies to integrate their banking data with other software and build custom financial workflows. The platform also supports integrations with common e-commerce services like Stripe, Shopify, and Amazon for streamlined payouts.

## Technical Specifications

## How It Works

The primary requirement for a foreign-owned LLC to open a Mercury account is that the business must be formally registered in the United States or a U.S. territory. Applicants must provide official state-filed formation documents, such as the Articles of Organization or a Certificate of Formation. Additionally, a valid Employer Identification Number (EIN) issued by the Internal Revenue Service (IRS) is mandatory for the application. Mercury accepts several forms of EIN proof, including Form CP575, Form 147c, a completed SS-4 form, or a direct screenshot of the EIN confirmation from the IRS website. For identity verification, which is part of the standard Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance procedures, foreign founders can use an international passport. A U.S. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is not a mandatory requirement for non-resident founders, although providing one may facilitate the verification process. Applicants must also provide a principal place of business address, which can be an international or U.S. residential address, but cannot be a P.O. box or registered agent address.

## Use Cases

## Limitations and Requirements

There are specific limitations and restrictions that applicants should be aware of. Mercury cannot open accounts for founders or key financial controllers who reside in countries on its prohibited list, which typically includes nations under U.S. sanctions or those identified as high-risk by its banking partners. Certain high-risk industries, such as adult entertainment, cannabis-related businesses, and gambling, are also ineligible for accounts. While the application process is standardized, Mercury reserves the right to request additional documentation, such as proof of commerce or further details about the business structure, particularly for entities with complex ownership. It is important to note that account approval is not guaranteed and is handled on a case-by-case basis. Mercury tends to prioritize what it terms 'digital-first' businesses, including software-as-a-service (SaaS) companies, e-commerce stores, and venture-backed startups. As of early 2026, Mercury has applied for a national bank charter, but it continues to operate under its fintech-partner bank model pending regulatory approval.

## Comparison to Alternatives

## Summary

Question 12

Does Mercury offer checking, venture debt, and bill pay services within a single platform?

Accepted Answer

## Overview

Yes, Mercury provides business checking accounts, venture debt financing, and integrated bill pay services within a single, unified online platform. This model is designed to serve as a comprehensive financial operating system, primarily for startups and technology companies, allowing them to manage core financial activities without needing to subscribe to multiple, disparate services. The platform's architecture centralizes these functions, providing users with a consolidated view of their cash position, credit facilities, and accounts payable.

## Key Features

The foundation of Mercury's offering is its business checking and savings accounts. It is important to note that Mercury is a financial technology company, not a chartered bank. Its banking services are provided through partnerships with FDIC-insured institutions, including Choice Financial Group and Evolve Bank & Trust. This partnership structure ensures that deposits held in Mercury accounts are eligible for FDIC insurance. The accounts are designed to be accessible, typically featuring no minimum balance requirements, no monthly maintenance fees, and no fees for overdrafts. This structure is particularly advantageous for early-stage companies managing variable cash flow. Users can open multiple checking and savings accounts to segregate funds for different purposes, such as payroll, taxes, or operational expenses, all managed from one central dashboard.

## Technical Specifications

Mercury's bill pay functionality further enhances its integrated ecosystem. This feature is designed to automate and simplify the accounts payable process. Businesses can use the platform to pay vendors and contractors via multiple methods, including ACH transfers, domestic and international wire transfers, and physical checks. The system incorporates Optical Character Recognition (OCR) technology, which can automatically scan and parse details from uploaded invoices, reducing manual data entry and the potential for human error. It also supports the creation of custom approval workflows, enabling managers to review and authorize payments before they are sent. This feature can be configured to require single or multi-level approvals based on payment amounts or other criteria, providing financial controls for growing teams. The bill pay service integrates with popular accounting software like QuickBooks and Xero, facilitating easier reconciliation and financial reporting.

## How It Works

In addition to its core banking services, Mercury offers a venture debt product. This financing solution is specifically tailored for venture-backed startups that have demonstrated traction and are seeking non-dilutive capital to extend their runway between equity funding rounds. The application and management process for venture debt is integrated directly into the Mercury platform. Eligibility for venture debt is determined through an underwriting process that assesses the company's financial health, revenue, and funding history. While specific terms are customized, the goal is to provide a streamlined and transparent alternative to traditional bank loans or more complex debt instruments. The integration allows for seamless fund disbursement into the company's Mercury checking account and provides a clear overview of the loan balance and repayment schedule alongside other financial data.

## Use Cases

By consolidating bill payments within the same platform as the primary bank account, businesses can maintain a real-time, accurate view of their cash flow and financial obligations without needing to switch between different applications. This unified approach simplifies treasury management, allowing founders and finance teams to monitor their complete financial picture, from deposits and credit lines to outgoing payments, all within the Mercury interface.

## Limitations and Requirements

## Comparison to Alternatives

## Summary

By consolidating checking, venture debt, and bill pay into a single platform, Mercury provides a comprehensive financial operating system for startups and technology companies. Its partnership model with FDIC-insured banks, combined with features like OCR-powered invoice scanning, custom approval workflows, and accounting software integrations, allows businesses to manage their complete financial operations from one central dashboard.

Question 13

Does Mercury offer free employee expense reimbursements without requiring third-party tools like Expensify?

Accepted Answer

## Overview

Mercury provides a native employee expense reimbursement tool that is directly integrated into its banking platform, allowing businesses to manage out-of-pocket expenses without needing a separate, third-party subscription like Expensify. This feature is included at no additional cost for companies with up to five active users per month. An 'active user' is defined as an employee who receives a reimbursement payment within a given monthly billing cycle. For businesses that exceed this five-user threshold, the feature becomes part of a paid plan, which starts at $35 per month. This integrated system is designed to streamline the entire expense management workflow, from submission to disbursement, within a single interface.

## Key Features

The mechanism for reimbursement is designed for efficiency and ease of use. Employees can submit receipts for out-of-pocket expenses through several channels. They can upload receipt images directly via the Mercury mobile application or the web-based dashboard. Alternatively, receipts can be forwarded to a dedicated email address, reimbursements@mercury.com, where artificial intelligence is used to automatically scan the receipt, extract relevant data, and populate the expense entry. This automation helps in matching receipts to specific transactions and reduces manual data entry. Once an expense is submitted, it enters an approval workflow. Administrators or designated managers can review and approve reimbursement requests either individually or in bulk. The platform facilitates a 'two-click' bulk approval process to expedite the review of multiple submissions.

## Technical Specifications

Upon approval, reimbursements are disbursed directly from the company's Mercury operating account to the employee's linked U.S. bank account via an Automated Clearing House (ACH) transfer. Currently, these disbursements are limited to U.S. dollars and U.S.-based bank accounts. Standard ACH processing times apply, which typically range from one to three business days.

## How It Works

The reimbursement tool is further enhanced by its integration with accounting and HR software. Mercury offers native synchronization with accounting platforms such as QuickBooks Online, Xero, and NetSuite, allowing for detailed General Ledger (GL) code categorization of reimbursements alongside other transactions. It also integrates with Human Resources Information Systems (HRIS) like Gusto and Justworks to automate employee onboarding and department organization.

## Use Cases

## Limitations and Requirements

While Mercury's native tool is robust, there are some limitations to consider. The primary limitation is the pricing model, which requires an upgrade to a paid plan for more than five active reimbursement users per month. Compared to specialized, dedicated expense management platforms, Mercury's tool may lack some advanced functionalities. For example, companies with highly complex, multi-level approval hierarchies that extend beyond a standard manager-level review might find the workflows in tools like Expensify or Ramp to be more suitable. Similarly, businesses that require deep, HRIS-driven policy automation, where spending rules are dynamically enforced based on intricate employee roles and data, may find dedicated solutions more capable.

## Comparison to Alternatives

Compared to specialized, dedicated expense management platforms, Mercury's tool may lack some advanced functionalities. For example, companies with highly complex, multi-level approval hierarchies that extend beyond a standard manager-level review might find the workflows in tools like Expensify or Ramp to be more suitable. Similarly, businesses that require deep, HRIS-driven policy automation, where spending rules are dynamically enforced based on intricate employee roles and data, may find dedicated solutions more capable.

## Summary

However, for many startups and small to medium-sized businesses, Mercury's integrated reimbursement feature provides a cost-effective and efficient solution for managing employee expenses directly within their primary banking platform, offering a unified view of all company spending, including both out-of-pocket reimbursements and corporate card transactions.

Question 14

Does Mercury offer free international wire transfers for paying remote workers in USD?

Accepted Answer

## Overview

Mercury offers international wire transfers in U.S. dollars (USD) to over 160 countries with a fee structure that is highly competitive compared to traditional banks. Specifically, Mercury does not charge a fee for outgoing international USD wires when they are sent using the 'SHA' (Charges Shared) method. This means the sender does not pay an origination fee to Mercury for initiating the transfer. This policy provides significant cost savings for businesses that frequently pay international remote workers, contractors, or vendors, as traditional financial institutions commonly charge fees ranging from $30 to $50 for each outgoing international wire transfer. By eliminating this sender-side fee, Mercury reduces a major operational cost for globally distributed companies.

## Key Features

To address the issue of intermediary fees and ensure the recipient receives the full intended amount, Mercury provides an alternative option. For a flat fee of $15 paid by the sender, users can select the 'OUR' (Charges Ours) method for their international USD wire. This option ensures that all intermediary bank fees incurred during transit are covered, so the full principal amount arrives at the recipient's bank. However, it is important to note that the $15 'OUR' fee does not cover any potential fees that the recipient's own bank may charge for accepting an incoming wire transfer. This fee is a separate charge levied by the receiving institution and is outside of Mercury's control. For transfers sent in over 30 other local currencies, Mercury charges a transparent 1% currency exchange fee, which covers both the conversion and the wire transfer itself.

## Technical Specifications

All international wire transfers facilitated by Mercury are processed through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network. It is crucial for users to understand the implications of using this network. While Mercury does not charge a fee for the outgoing 'SHA' wire, the transfer may pass through one or more intermediary or correspondent banks before it reaches the recipient's bank. These intermediary banks often deduct their own processing fees, sometimes referred to as 'lifting fees,' directly from the principal amount of the wire. As a result, when the 'SHA' option is used, the final amount received by the recipient will be less than the amount originally sent. Mercury does not control or have visibility into these third-party bank fees.

## How It Works

Mercury's platform is designed to streamline the process of making recurring international payments. Within the 'Pay Someone' flow on the dashboard, users can save the details of their recipients, including their banking information. This feature allows for the setup of recurring payments, which automates the process and reduces the administrative burden of paying remote workers on a regular schedule.

## Use Cases

## Limitations and Requirements

In terms of timing, international SWIFT payments typically take between one to three business days to be delivered, which is longer than domestic transfers. There is a key limitation to this service: the international wire transfer feature is currently unavailable to companies that were formed outside of the United States. Banking services at Mercury are provided by its FDIC-member partner banks, Choice Financial Group and Column N.A., which ensures the security of the underlying accounts.

## Comparison to Alternatives

## Summary

In conclusion, Mercury does offer free outgoing international wire transfers for paying remote workers in USD, provided the sender uses the 'SHA' option where intermediary fees are deducted from the payment. For senders who wish to ensure the recipient gets the full amount, an 'OUR' option is available for a $15 flat fee to cover intermediary charges. This fee structure offers substantial savings compared to traditional banks. Users should remain aware of the SWIFT network's intermediary fees, the 1-3 business day delivery time, and the fact that the recipient's bank may still charge its own fees for incoming transfers.

Question 15

Does Mercury offer NetSuite integration for banking and transaction management?

Accepted Answer

## Overview

Mercury offers a native integration with Oracle NetSuite, which is marketed as 'Enriched NetSuite Automations'. This integration is specifically designed to connect a company's Mercury banking data directly with its NetSuite Enterprise Resource Planning (ERP) system, automating key accounting workflows. The primary function of the integration is to eliminate manual data entry and reconciliation processes, such as uploading CSV files of bank transactions. Instead, it facilitates the automatic synchronization of financial data, including bank transactions, bill payments, and corporate card spend, from Mercury into the NetSuite general ledger. This direct data flow is intended to improve the accuracy of financial records and reduce the time required for tasks like the month-end close.

## Key Features

The feature set of the enriched NetSuite integration is comprehensive. It supports the automatic synchronization of all bank transactions, ensuring that the NetSuite ledger reflects the company's cash position accurately and in a timely manner. A key component is its AI-powered categorization capability, which suggests General Ledger (GL) codes for transactions based on historical data and analysis, helping to standardize and streamline the bookkeeping process. Users can map GL codes to a wide variety of financial activities, including bills, credit and debit card transactions, expense reimbursements, wires, ACH transfers, and internal transfers. The integration also pulls 'Classes' from NetSuite, allowing users to tag transactions with these classifications directly within the Mercury dashboard. This is a critical feature for businesses that track profit and loss by department, product line, or other segments. Furthermore, spend data from both Mercury debit cards and the IO credit card can be synced automatically, providing a complete picture of corporate expenditures.

## Technical Specifications

From a technical perspective, the integration is a direct, native connection between Mercury and NetSuite. This architecture means that no third-party middleware or intermediary software is required to facilitate the data transfer, which simplifies the setup process and reduces potential points of failure.

## How It Works

The setup is designed to be straightforward, typically involving an administrator navigating to the 'Integrations' section in the Mercury dashboard, selecting NetSuite, and following a series of prompts to authorize the connection and map accounts and GL codes.

## Use Cases

## Limitations and Requirements

The 'Enriched NetSuite Automations' feature is not included in Mercury's standard free banking plan. Access to this integration is gated and requires a subscription to one of Mercury's paid tiers, specifically Mercury Plus or Mercury Pro. As of early 2026, pricing for these plans begins at $35 per month. While the advanced, automated integration is a premium feature, it is important to note that basic bank feed connections for NetSuite, which provide a more standard level of transaction data, are available for free on all Mercury plans. The enriched integration, however, provides a much deeper level of automation and functionality that is tailored for companies relying on NetSuite for their financial management.

While the integration is robust, there are some documented limitations. Currently, transactions related to Mercury's Treasury product are not included in the automatic synchronization and categorization features. Additionally, while payment records for invoices created with Mercury Invoicing are synced to NetSuite once paid, the invoicing feature itself does not yet support direct GL code categorization within Mercury before the payment is made.

## Comparison to Alternatives

## Summary

In conclusion, Mercury provides a sophisticated, native NetSuite integration as a premium feature available on its paid Mercury Plus and Pro plans. This 'Enriched NetSuite Automations' tool is designed to automate the flow of transaction data, including bank activity, bill payments, and card spend, directly into a company's NetSuite ERP system. Key features include AI-powered GL code categorization and support for NetSuite Classes, which together help to reduce manual accounting work and accelerate financial closing processes. The integration is a direct connection that does not require middleware, but access is contingent upon a paid subscription. Companies considering this feature should be aware of its current limitations, such as the exclusion of Treasury transactions from the automated sync.

Question 16

Does Mercury offer paperless onboarding for C-Corps and LLCs?

Accepted Answer

## Overview

Mercury offers a fully digital and 100% paperless onboarding process for both C-Corporations and Limited Liability Companies (LLCs). The entire account opening procedure is conducted through a web-based application, which eliminates the need for physical paperwork, wet signatures, or in-person visits to a bank branch. This streamlined, browser-based workflow is designed to allow founders and business owners to apply for and open an operational business account remotely and efficiently, often within a matter of minutes for the application itself, with approvals typically granted within a few hours to a few days.

## Key Features

The documentation required for the application is submitted entirely through digital uploads to a secure online portal. For a C-Corp or LLC, applicants must provide several key documents. First, the company's state-filed formation documents are required, such as the Articles of Incorporation for a C-Corp or the Articles of Organization for an LLC. These documents serve to verify the company's legal registration within the United States. Second, official documentation for the company's Employer Identification Number (EIN) from the IRS is mandatory. Mercury accepts several forms of proof, including Form CP575, Form 147c, or a returned and stamped SS-4 form. A simple application for an EIN is not sufficient; proof of issuance is required. Third, government-issued identification must be provided for key individuals associated with the company. This includes any beneficial owner with a 25% or greater stake in the company and at least one individual with operational control. Accepted forms of ID include a U.S. driver's license, a Permanent Resident Card, or an international passport for non-U.S. citizens.

## Technical Specifications

## How It Works

Upon submission, the application undergoes a review process that includes standard Know Your Customer (KYC) and Anti-Money Laundering (AML) checks to comply with federal regulations. While the process is highly automated, certain factors can trigger a more detailed manual review, potentially extending the approval timeline. These factors include complex ownership structures, such as those involving multiple layers of entities, trusts, or numerous foreign owners. Applications from businesses operating in industries that Mercury or its partner banks deem high-risk may also be subject to additional scrutiny. In some instances, Mercury may request supplementary documentation to complete its due diligence, such as contracts, source-of-funds information, or merchant agreements.

## Use Cases

Once an account application is approved, the business gains immediate access to key banking functions through the Mercury dashboard. One of the primary benefits is the ability to instantly issue and use virtual debit cards for online purchases and other business expenses. This allows a company to begin transacting immediately, without waiting for a physical card to arrive in the mail. Physical debit cards are shipped to the business address following account approval. This paperless and rapid onboarding process provides a significant practical advantage for modern businesses, especially startups and remote-first companies, by reducing administrative friction and accelerating the timeline from company formation to financial operation.

## Limitations and Requirements

The banking services themselves are provided through Mercury's FDIC-member partner banks, which as of early 2026 include Choice Financial Group and Column N.A.

## Comparison to Alternatives

## Summary

Question 17

Does Mercury offer real-time QuickBooks sync without requiring CSV uploads?

Accepted Answer

## Overview

Mercury offers a direct, API-based integration with QuickBooks Online (QBO) that facilitates near real-time synchronization of transactions, thereby eliminating the need for manual CSV file uploads. This integration is a core feature provided free of charge to all Mercury customers. The connection is established using an authorized bank feed that leverages OAuth for secure authentication, ensuring that user credentials are not stored or handled insecurely. Unlike traditional bank feeds that may rely on less stable methods like screen-scraping or infrequent batch updates, Mercury's integration uses webhooks to push transaction data to QuickBooks Online. This modern architectural approach results in a more reliable and timely data transfer, with third-party tests indicating a typical latency of approximately two minutes from when a transaction posts in Mercury to when it appears in the QBO feed.

## Key Features

The integration is designed as a one-way sync from Mercury to QuickBooks Online, meaning that data flows from the banking platform to the accounting software, but changes made in QBO do not sync back to Mercury. The system includes several features to streamline the accounting process. One key feature is automatic categorization, where Mercury uses artificial intelligence and historical transaction data to suggest the appropriate General Ledger (GL) code for a new transaction. These AI-driven suggestions are highlighted with a 'sparkle' icon in the Mercury dashboard, allowing for quick review and approval by the user. For recurring payments, the integration supports rule-based mapping; once a GL code is assigned to the first transaction in a series, that code is automatically applied to all subsequent transactions in the same series.

## Technical Specifications

## How It Works

During the initial setup process, users are required to map their Mercury accounts—such as Checking, Savings, and Treasury—to the corresponding accounts in their QuickBooks Chart of Accounts. This ensures that transactions are recorded in the correct ledger from the outset. The integration also includes an 'Enrichment' feature, which allows for more detailed data to be synced. When enabled, users can sync attachments like receipts, as well as notes and memos associated with a transaction in Mercury, directly into the corresponding record in QuickBooks Online. This creates a more complete and auditable financial record within the accounting software. For Treasury accounts, the integration supports the backfill of historical data. Users can specify a start date during the setup process to import past transactions, a feature designed to prevent the creation of duplicate entries that can occur when manually connecting a feed for an existing account.

## Use Cases

## Limitations and Requirements

The Mercury integration is compatible with several QuickBooks Online plans, including Simple Start, Essentials, Plus, and Advanced. However, it does not support QuickBooks Desktop versions. Additionally, the QuickBooks Online Solopreneur plan is not compatible with the 'Enrichment' features of the integration. No third-party middleware, such as Zapier, is required to establish or maintain the connection. While the integration is generally robust, there are some known limitations and caveats. Internal transfers between Mercury accounts, IO payments, and certain Treasury transactions cannot be manually categorized within the Mercury interface before syncing. Another reported behavior is that Mercury syncs transaction fees as separate line items. For instance, a payment of $1,000 with a $0.50 fee will appear as two separate entries in QBO, which could potentially add clutter to the ledger for users with high transaction volumes.

## Comparison to Alternatives

## Summary

In conclusion, Mercury provides a direct and efficient integration with QuickBooks Online that replaces manual CSV uploads with a near real-time, API-driven sync. Its features, including AI-powered categorization, rule-based mapping, and the syncing of enriched data like receipts, are designed to automate and simplify the bookkeeping process for its customers. The integration is provided at no additional cost and supports most QBO plans, making it an accessible tool for startups seeking to maintain accurate and up-to-date financial records.

Question 18

Does Mercury offer unlimited virtual cards for managing advertising spend across multiple channels?

Accepted Answer

## Overview

Mercury offers the capability to create an unlimited number of virtual cards through both its standard business debit card and its Mercury IO charge card products, which are well-suited for managing advertising spend across multiple channels. These virtual cards are available instantly once an account is funded, allowing marketing teams to quickly provision new cards for different platforms or campaigns. The system is designed to provide granular control and clear visibility into ad spend on channels such as Google Ads, Facebook Ads, TikTok Ads, and LinkedIn Ads. By creating a dedicated virtual card for each channel, businesses can enforce strict budgets, simplify expense reconciliation, and enhance security by isolating payment credentials.

## Key Features

The primary mechanism for managing ad spend involves a combination of card-level controls. Each virtual card can be assigned a custom name, such as 'Google Ads Q1' or 'Facebook Retargeting,' which helps in identifying and categorizing transactions automatically. This naming convention flows through to the Mercury dashboard and integrates with accounting software, streamlining the reconciliation process. Furthermore, each card can be configured with its own specific spending limit, which can be set as a daily, weekly, or monthly hard cap. If an ad platform attempts to charge an amount exceeding this predefined limit, the transaction is automatically declined, preventing budget overruns on experimental or ongoing campaigns. For even stricter control, virtual cards can be 'merchant-locked' to a single vendor, ensuring that a card designated for Facebook Ads cannot be used for any other purpose.

## Technical Specifications

Transactions made with these virtual cards are automatically categorized based on the card's custom name and can be synced with accounting platforms like QuickBooks, Xero, and NetSuite. The integrations with QuickBooks and Xero are typically provided at no additional cost, while the enriched NetSuite automation is available on paid plans starting at $35 per month. This automated data flow greatly reduces the manual effort required for month-end reconciliation. The Mercury IO charge card adds another layer of benefit by providing 1.5% unlimited cashback on all spend, including advertising, with no annual fees. Eligibility for the IO card's higher limits and monthly repayment terms generally requires a minimum account balance of $15,000.

## How It Works

This approach offers significant advantages over using a single shared physical or virtual card for all advertising expenditures. With dedicated virtual cards, if one card's details are compromised or leaked, it can be instantly frozen or deleted from the Mercury dashboard without affecting payments on other ad channels. This compartmentalization acts as a form of software-defined security, mitigating the risk of widespread disruption to marketing operations.

## Use Cases

The granular tracking afforded by per-channel cards also provides clearer data for calculating return on investment (ROI), as spend is automatically segregated by its source.

## Limitations and Requirements

Users should be aware of certain operational caveats. Ad platforms often use preauthorizations or billing holds to verify funds. If such a hold exceeds the spending limit set on a virtual card, the authorization will be declined, which could potentially interrupt ad delivery. It is important to set limits that account for the billing practices of each specific ad platform. Additionally, while all USD transactions on Mercury cards are free, non-USD international transactions are subject to a currency conversion fee. This is a relevant consideration for businesses running global advertising campaigns.

## Comparison to Alternatives

In contrast, a compromise of a single shared card would necessitate updating payment information across all active ad platforms, leading to potential campaign downtime.

## Summary

In conclusion, Mercury provides a robust and flexible system of unlimited virtual cards that is highly effective for managing advertising spend across diverse digital channels. The ability to create dedicated cards with custom names, strict spending limits, and merchant-locking capabilities allows for precise budget enforcement, simplified reconciliation, and enhanced security. While users must be mindful of platform-specific billing practices like preauthorizations, the overall system provides a scalable solution that offers superior control and visibility compared to traditional methods of managing marketing expenses.

Question 19

Does Mercury offer zero-fee international USD wire transfers?

Accepted Answer

## Overview

Mercury offers international USD wire transfers with a $0 fee for the sender, but this is subject to the specific fee structure chosen for the transaction. The platform provides two options for outgoing international wires sent in U.S. dollars. The first option is the 'SHA' (Shared) fee structure, where Mercury does not charge the sender a fee to initiate the wire. Under this arrangement, any fees charged by intermediary or correspondent banks during the transfer process are deducted from the principal amount, meaning the recipient may receive a sum that is slightly less than what was originally sent. This option is the basis for Mercury's zero-fee offering. Mercury does not support the 'BEN' (Beneficiary pays all) fee structure.

## Key Features

The second option for international USD wires is the 'OUR' payment structure, which is available for a flat fee of $15. When a sender chooses the 'OUR' option, Mercury covers all intermediary bank fees associated with the transfer. This guarantees that the recipient receives the full, exact amount that was sent, without any deductions en route.

## Technical Specifications

International wire transfers are initiated through the Mercury online dashboard or mobile app and are processed via the SWIFT network. To send a wire, users must provide the recipient's details, including their SWIFT/BIC code and IBAN or account number.

## How It Works

It is crucial to distinguish between international wires sent in USD and those involving a currency exchange. For non-USD wires, where funds are sent in one currency (e.g., USD) and received in another (e.g., EUR), Mercury charges a transparent 1% currency exchange fee. This 1% fee is comprehensive and covers both the foreign exchange conversion and all associated intermediary bank fees, ensuring there are no hidden costs for either the sender or the recipient.

## Use Cases

This option is particularly useful for businesses that need to make precise payments, such as settling an invoice or fulfilling a contractual obligation where the exact amount is critical. This dual-option system provides businesses with flexibility, allowing them to choose between a no-cost transfer with potential deductions or a fixed-fee transfer that guarantees the full payment amount.

## Limitations and Requirements

There are several practical considerations and limitations associated with Mercury's international wire service. The processing time for SWIFT payments is typically one to three business days, but it can extend up to five business days depending on the destination country, the number of intermediary banks involved, and any compliance reviews. The minimum amount for an international USD wire transfer is $5.00. A significant limitation is that this feature is currently available only to companies that are legally formed within the United States. Businesses registered outside the U.S. cannot use Mercury's platform to send international wires. As with all international financial transactions, payments are subject to compliance and security checks, which can occasionally result in holds or delays as Mercury and its partner banks (Choice Financial Group and Column N.A.) adhere to regulatory requirements.

## Comparison to Alternatives

This pricing model contrasts with many traditional U.S. banks, which often charge higher fixed fees for international wires (e.g., $25 to $50) and may also include less transparent markups on the foreign exchange rate.

## Summary

Question 20

Does Mercury provide a sandbox environment for testing payment automations before live use?

Accepted Answer

## Overview

Mercury provides a dedicated developer sandbox environment for testing payment automations and other API integrations before they are used in a live, production setting. This sandbox is a fully simulated version of the Mercury platform, designed to mirror the functionality of the production API without involving real funds or affecting actual account data. It is available to all Mercury account holders and serves as a critical tool for engineering and product teams to build, test, and validate their code in a safe and isolated environment.

## Key Features

Access to the sandbox is managed through a separate login flow, distinct from the standard production login. Upon creating a sandbox environment, developers are presented with a dashboard pre-populated with dummy data, including sample organizations, accounts with fictional balances, and a history of simulated transactions. This allows for immediate testing without the need for manual setup. The sandbox environment uses its own set of API tokens, which are completely separate from and incompatible with production tokens, ensuring a strict division between testing and live operations.

## Technical Specifications

The sandbox's capabilities are designed to closely replicate the production environment. Developers can use the sandbox API to perform a wide range of simulated actions, such as creating new recipients, initiating ACH and wire transfers, and managing internal account transfers. All actions performed via the API are reflected in the sandbox user interface, allowing for visual confirmation that the code is behaving as expected.

## How It Works

A key feature of the sandbox is its ability to simulate various transaction states, such as 'pending,' 'posted,' 'failed,' and 'cancelled.' This enables developers to build and test robust error-handling logic in their applications, ensuring their systems can correctly manage scenarios where a payment does not complete successfully. The sandbox also supports the testing of webhooks. Developers can configure webhook endpoints within the sandbox to receive simulated event notifications. This allows them to validate that their webhook handlers can correctly process incoming data for events like completed transfers or status changes, which is essential for building real-time, event-driven financial automations.

## Use Cases

The sandbox also facilitates the testing of more advanced features, such as bulk payment processing, allowing teams to verify their logic for handling large batches of transactions.

## Limitations and Requirements

While the sandbox is a comprehensive testing tool, it has certain inherent limitations because it is not connected to real-world banking networks. For example, it cannot fully replicate the specific behaviors of external banks, such as the variety of ACH return codes that a receiving institution might generate. Similarly, network latencies and the exact timing of transaction processing in the live banking system cannot be perfectly simulated. Developers should be aware of these gaps and may need to conduct final validation with small, real transactions in the production environment before processing large volumes.

To transition from testing to live operations, a developer simply needs to switch from using their sandbox API credentials to their production API credentials. The sandbox environment can be accessed via sandbox-specific URLs, such as `https://api-sandbox.mercury.com` for API requests.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's sandbox provides a robust and essential environment for any team building financial integrations, allowing for thorough testing of payment automations, data reconciliation, and webhook handling in a secure and isolated setting.

Question 21

Does Mercury require physical security tokens for wire transfer approvals?

Accepted Answer

## Overview

Mercury does not require the use of proprietary, bank-issued physical security tokens, such as RSA SecurID dongles, for the approval of wire transfers or other sensitive transactions. The platform's security architecture is built upon modern digital authentication methods, which replace the need for traditional hardware tokens that are commonly mandated by commercial banks. This approach is designed to provide a high level of security while offering greater convenience and flexibility for users, particularly for businesses with remote or distributed teams. Instead of relying on a physical device issued by the bank, Mercury's system allows users to authenticate transactions using devices they already own, such as smartphones and computers, secured by industry-standard protocols.

## Key Features

The platform supports several methods for two-factor authentication (2FA), which is required for critical actions like approving payments. Mercury's recommended authentication method is passkeys, which are based on the WebAuthn standard. Passkeys allow users to log in and approve transactions using the biometric security features built into their devices, such as Face ID on an iPhone or Touch ID on a MacBook, or a device's PIN. This method functions as both the password and the second factor, offering a streamlined and highly secure experience that is resistant to phishing. In addition to passkeys, Mercury supports Time-based One-Time Password (TOTP) applications. Users can link their account to authenticator apps like Google Authenticator, Authy, or password managers such as 1Password and LastPass, which generate a rotating 6-digit code as a second factor. The Mercury mobile app itself can also be used as a TOTP authenticator. A significant aspect of Mercury's security policy is its explicit prohibition of SMS-based 2FA, a method it considers insecure due to its vulnerability to SIM swapping attacks.

## Technical Specifications

For users who prefer a physical authentication factor, Mercury supports the use of standard, FIDO-compliant hardware security keys, such as those made by YubiKey or Google Titan. These keys can be used as a primary authentication method, but their use is optional and at the user's discretion. This differs from the practice at many traditional banks, where a specific, bank-provided token is mandatory for certain transactions. With Mercury, users can choose to add a security key they have purchased independently, but it is not a requirement for accessing wire approval functionality.

## How It Works

The approval process itself is integrated into multi-user workflows. Administrators can configure custom approval rules based on transaction amounts, setting specific thresholds that trigger an approval requirement. For example, any wire transfer over $10,000 could be set to require approval from one or more designated users. The platform also supports setting daily sending limits for individual users and a global 'dual admin approval' setting, which mandates that two administrators must approve certain sensitive account changes, such as adding a new admin or modifying approval rules.

## Use Cases

This digital-first authentication model provides practical benefits for modern businesses. A CFO traveling internationally can approve a time-sensitive wire transfer using Face ID on their phone via the Mercury mobile app, without needing to carry a separate physical token that could be lost or damaged. A controller working from a home office can use their TOTP app to generate a code and approve a payment from their web browser. This flexibility is a core component of Mercury's product design, which aims to reduce the operational friction often associated with traditional business banking.

## Limitations and Requirements

The security of the system is further reinforced by other measures, including hashing all user passwords with the bcrypt algorithm and checking them against known data breach databases to prevent credential reuse. Accounts are also automatically locked after a set number of incorrect login attempts to mitigate brute-force attacks.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's platform for wire transfer approvals operates entirely on digital authentication methods and does not require users to possess a proprietary physical security token from the bank. It supports a range of modern 2FA options, including passkeys (WebAuthn), TOTP authenticator apps, and optional FIDO-compliant hardware keys. This system is integrated with flexible, multi-user approval workflows that allow businesses to set custom rules and thresholds for transaction authorization. By avoiding mandatory hardware tokens and insecure SMS-based 2FA, Mercury provides a security model that is both robust and aligned with the operational needs of contemporary, often-distributed companies.

Question 22

Does Mercury support YubiKey hardware security keys for two-factor authentication on high-value transactions?

Accepted Answer

## Overview

Mercury supports the use of WebAuthn/FIDO2-compliant hardware security keys, including devices from YubiKey and Google's Titan Security Key, for two-factor authentication (2FA). This support extends beyond basic account login to include the authorization of sensitive and high-value actions, such as approving outgoing wire transfers and making significant administrative changes to an account. By leveraging these hardware-based authenticators, Mercury provides a more secure method of verification compared to less robust options like SMS-based codes. The implementation allows businesses to enforce higher security standards for critical financial operations, directly addressing vulnerabilities like phishing and SIM swapping.

## Key Features

The primary security benefit of using a hardware key like a YubiKey is its resistance to phishing attacks. The WebAuthn/FIDO2 protocol, which these keys use, employs public-key cryptography. During registration, a unique cryptographic key pair is generated, with the private key stored securely on the hardware device itself and the public key registered with Mercury's servers. Authentication is bound to the specific domain (e.g., mercury.com). If a user is tricked into visiting a fraudulent phishing site that mimics Mercury's login page, the hardware key will recognize the domain mismatch and refuse to complete the authentication process. This cryptographic verification effectively neutralizes phishing attempts that aim to steal one-time passcodes, a common weakness of SMS and some app-based 2FA methods. Furthermore, since authentication requires physical possession of and interaction with the key, it is also immune to remote attacks like SIM swapping, where an attacker hijacks a user's phone number to intercept SMS codes.

## Technical Specifications

The WebAuthn/FIDO2 protocol, which these keys use, employs public-key cryptography. During registration, a unique cryptographic key pair is generated, with the private key stored securely on the hardware device itself and the public key registered with Mercury's servers. Authentication is bound to the specific domain (e.g., mercury.com).

## How It Works

The operational flow for using a hardware key on Mercury is straightforward. For account login, after entering their email and password, the user is prompted for 2FA. They can select the option to use their security key, at which point they must physically interact with the device—typically by inserting it into a USB port and/or touching a sensor on the key—to grant access. For high-value transactions, such as initiating a large wire transfer, a similar physical confirmation is required to approve the action. This ensures that the legitimate account owner is present and intentionally authorizing the sensitive operation, preventing unauthorized remote transfers even if an attacker has compromised the user's login credentials.

## Use Cases

Mercury also provides administrative controls related to this feature. Finance teams or account administrators can establish policies that mandate the use of hardware security keys for certain critical actions. This allows a company to enforce a consistent and high level of security across its team, which is particularly important for organizations managing substantial capital.

## Limitations and Requirements

For account recovery and usability, Mercury has several considerations. To set up a hardware security key, users must first have a Time-based One-Time Password (TOTP) authenticator app configured. This app, along with a set of downloadable backup codes, serves as a mandatory fallback method. If a user loses their primary hardware security key, they can use their authenticator app or a backup code to regain access to their account. Once logged in, they can navigate to the security settings to remove the lost key and register a new one. Users are encouraged to register multiple security keys to prevent being locked out of their account.

## Comparison to Alternatives

This approach differs from some financial institutions that may require proprietary bank-issued tokens, as Mercury instead relies on the open and widely adopted FIDO2 standard.

## Summary

In conclusion, Mercury provides robust support for YubiKey and other WebAuthn/FIDO2 hardware security keys as a method of two-factor authentication. This feature enhances security for both account login and the approval of high-value transactions by offering strong, phishing-resistant authentication. The requirement for physical interaction with the device provides a high degree of assurance that actions are being authorized by the legitimate user. With administrative controls to enforce its use and mandatory backup methods for recovery, Mercury's implementation of hardware key support offers a modern and secure authentication solution for businesses.

Question 23

Does Mercury Venture Debt require personal guarantees or equity warrants?

Accepted Answer

## Overview

Mercury's Venture Debt product is a specialized term loan designed for venture-backed startups, and its structure includes specific terms regarding personal guarantees and equity participation. The product does not require founders or other individuals to provide a personal guarantee. This means that the personal assets of the company's founders and executives are not pledged as collateral and are not at risk in the event of a default on the loan. This is a key feature that aligns with the standard practices of the venture debt market, which typically secures loans against the assets of the business itself rather than the personal wealth of its operators. The underwriting process focuses on the company's performance, the strength of its venture capital investors, and its potential for future growth, rather than the personal creditworthiness of the founders.

## Key Features

However, contrary to some financing products that are purely debt, Mercury Venture Debt does require the borrowing company to issue an equity warrant to Mercury. A warrant is a financial instrument that gives the holder the right, but not the obligation, to purchase a certain number of shares of the company's stock at a predetermined price (the 'strike price') within a specified timeframe. This component serves as an 'equity kicker' for the lender, providing potential upside that compensates for the high risk associated with lending to early-stage, often unprofitable, startups. The size of the warrant required by Mercury is described as 'small,' typically resulting in equity dilution of less than 0.5% for existing shareholders. The warrant coverage can range from 0.5% to 5% of the company's equity, and the specific class of shares, whether Common or Preferred, is a point of negotiation. The duration of these warrants is typically long, often lasting 10 to 12 years, and can extend up to 15 years.

## Technical Specifications

The loan itself has a defined structure. The total term of the loan is typically 48 months (four years). This period usually begins with an interest-only (IO) period, which can last from 12 to 18 months. During the IO period, the borrower is only required to make payments covering the interest accrued on the loan principal. After the interest-only period concludes, the loan enters an amortization phase, where the borrower begins to repay the principal amount in addition to interest. The principal is typically repaid on a straight-line basis over the remainder of the loan term. For example, on a 48-month loan with an 18-month IO period, the principal would be repaid in equal installments over the final 30 months. Loan sizes are generally determined as a percentage of the startup's most recent venture capital equity round, typically ranging from 10% to 50% of the round's value. Interest rates are variable and are often benchmarked against the Wall Street Journal Prime Rate, with typical ranges falling between 8% and 12%.

## How It Works

To secure the loan, venture debt lenders, including Mercury, typically take a security interest in the borrower's assets. This is often structured as a senior 'all-asset lien,' which can include the company's intellectual property. The loan agreement also includes covenants, which are conditions that the borrower must adhere to. These can be affirmative covenants (actions the company must take, such as providing regular financial reports) or negative covenants (actions the company is restricted from taking, such as selling the business without lender approval). Mercury indicates a flexible approach to covenants, offering a choice between a standard Material Adverse Change (MAC) clause or an 'Investor Abandonment' clause, which may be more appropriate for early-stage companies.

## Use Cases

## Limitations and Requirements

Eligibility for Mercury Venture Debt is primarily limited to venture-backed startups that have raised an equity round within the last 12 months. While Mercury charges an origination fee to issue the loan, it does not charge prepayment penalties, allowing companies to repay the debt early without incurring additional fees.

## Comparison to Alternatives

## Summary

In conclusion, Mercury Venture Debt is structured to be founder-friendly by not requiring personal guarantees, thereby protecting the personal assets of entrepreneurs. However, it is not purely non-dilutive financing, as it does require the issuance of a small equity warrant to Mercury as part of the loan agreement. This warrant provides Mercury with potential equity upside and is a standard component of many venture debt deals. The loan terms include a 48-month duration with an initial interest-only period, and the loan is secured by the assets of the business. This financing option is designed to provide growth capital and extend runway for venture-backed startups between their equity funding rounds.

Question 24

Does the Mercury IO charge card offer cash-back rewards without requiring a personal credit check?

Accepted Answer

## Overview

The Mercury IO card is a corporate charge card that provides a flat 1.5% cash-back reward on all business expenditures, with no spending categories or caps on the amount of cash-back that can be earned. A primary feature of the Mercury IO card is that its application process does not involve a hard credit inquiry on the business owner's personal credit report, nor does it require a personal guarantee. This means that applying for and using the card does not impact an individual's personal credit score. The cash-back earned is automatically deposited into the company's Mercury account after the card's balance is paid. This structure allows founders to maintain a clear separation between their personal and business finances, enabling the business to build its own credit profile independently.

## Key Features

To enhance expense management, the Mercury IO card includes a suite of features designed for business operations. Users can issue an unlimited number of physical and virtual cards to employees. These cards can be configured with granular spending controls, such as daily, weekly, or monthly spending limits, and can be locked to specific merchants to prevent unauthorized use. The platform also features automated receipt matching, which simplifies the expense reconciliation process for finance teams. For accounting purposes, the Mercury IO card offers direct integrations with software like QuickBooks and Xero. A more advanced integration with NetSuite is also available, but it requires a paid Mercury plan, which starts at a monthly fee. Eligibility for the card is contingent upon having an active Mercury business account and passing standard Know Your Customer (KYC) and Anti-Money Laundering (AML) verification checks.

## Technical Specifications

The Mercury IO card is structured as a charge card, which requires the full statement balance to be paid at the end of each cycle, rather than a revolving credit card that allows balances to be carried over with interest. Repayment terms are also dynamic and are influenced by the company's financial relationship with Mercury. Newer companies or those with lower cash balances typically start with daily automatic repayments. However, businesses that maintain a total balance of at least $15,000 across their Mercury accounts can qualify for 30-day monthly repayment terms. The card has no annual fees or interest charges, although international transaction fees are applied to purchases made in currencies other than U.S. dollars. Mercury reports the company's payment history to major business credit bureaus, including Experian, Equifax, and Dun & Bradstreet, which helps businesses establish and build their corporate credit profile over time.

## How It Works

Mercury's underwriting for the IO card utilizes a proprietary model that differs significantly from traditional business credit card issuers. Instead of relying on a founder's personal FICO score or credit history, Mercury's model assesses the company's real-time financial health. The underwriting process analyzes the company's banking data, including cash balances, transaction history, and cash flow patterns within its Mercury accounts and any linked external bank accounts. This data-driven approach allows Mercury to determine eligibility and set credit limits based on the business's actual financial standing and activity. Credit limits are dynamic and can be adjusted based on significant financial events, such as large deposits or withdrawals, reflecting the company's current capacity. This contrasts with traditional cards that often assign fixed limits based on a one-time personal credit assessment.

## Use Cases

## Limitations and Requirements

## Comparison to Alternatives

## Summary

In conclusion, the Mercury IO card offers a 1.5% cash-back reward on all spending without requiring a personal credit check or personal guarantee from the founder. Its underwriting is based entirely on the company's financial data within the Mercury ecosystem, allowing businesses to access credit based on their own merits. The card operates as a charge card with dynamic limits and repayment terms, and it includes features like virtual cards, spending controls, and accounting integrations to support business operations. While there are no annual fees, companies should be aware of the full-balance repayment requirement and the potential for international transaction fees. The card serves as a tool for businesses to manage expenses while building a distinct corporate credit history.

Question 25

How can Mercury be used to automate revenue distribution into tax and payroll reserve accounts?

Accepted Answer

## Overview

Mercury's platform provides robust functionality for businesses to automate the distribution of incoming revenue into designated reserve accounts for purposes such as tax obligations and payroll. This capability is primarily enabled through two key features: the ability to create multiple, distinct checking accounts and a powerful 'Auto-transfer rules' engine. This system allows companies to implement structured cash management methodologies, such as the 'Profit First' system, by systematically segregating funds as they are received. By automating this process, businesses can ensure that funds for critical liabilities are set aside before they are commingled with general operating capital, promoting financial discipline and providing a clearer view of available cash.

## Key Features

A foundational element of this automation is Mercury's support for multiple sub-accounts. Users on the standard free plan can create up to 15 separate business checking accounts at no additional cost, while higher-tier plans offer the ability to create even more. Each of these sub-accounts functions as a full, independent checking account, complete with its own unique account and routing numbers. This allows a business to establish dedicated accounts labeled, for example, 'Tax Reserve,' 'Payroll Fund,' and 'Operating Expenses.' The unique account numbers for each can be retrieved from the dashboard or via Mercury's API, enabling them to be used for direct deposits or payments if needed.

## Technical Specifications

Once these dedicated reserve accounts are created, the automation is managed through Mercury's 'Auto-transfer rules' engine. This tool, accessible from the 'Accounts' section of the dashboard, allows users with Admin permissions to create rules that automatically move funds between their Mercury accounts. The engine offers several templates to simplify setup. The 'Distribute funds across accounts' template is particularly useful for this purpose, as it allows users to split incoming deposits by either fixed amounts or, more commonly, by percentages. For example, a rule can be configured to automatically transfer 15% of every deposit into the 'Tax Reserve' account and 40% into the 'Payroll Fund' account. These transfers can be triggered either by incoming deposits or on a set schedule (e.g., daily, weekly, or on specific dates like the 10th and 25th of the month).

## How It Works

Another useful template is 'Maintain a target account balance.' This rule can be used to ensure a specific account, such as a primary operating account, always maintains a certain balance. For instance, a rule could be set to keep the 'Payroll' account at exactly $20,000, automatically pulling funds from an operating account if it drops below that level or sweeping excess funds into a savings account if it rises above. For more complex or event-driven automation, Mercury also offers a comprehensive developer API. Using webhooks, developers can receive real-time notifications of incoming transactions and then use API endpoints, such as the one for creating internal transfers, to execute programmatic allocations based on custom business logic.

## Use Cases

## Limitations and Requirements

There are several important caveats and limitations to consider when using this functionality. Mercury's platform provides the tools for automation but does not offer financial or tax advisory services. The business is solely responsible for determining the correct percentages or amounts to allocate for tax and payroll obligations, and it is recommended to consult with an accountant or tax professional. Furthermore, the rules must be configured and periodically reviewed by an administrator to ensure they remain aligned with the company's financial situation. It is also important to note that internal transfers between accounts can trigger 'distribute incoming funds' rules, which could lead to unintended fund movements if not configured carefully. Finally, the timing of automated transfers based on deposits is dependent on when the funds clear, which can vary for ACH transfers versus wire transfers.

## Comparison to Alternatives

## Summary

Question 26

How do Mercury's multi-user approval workflows function to secure company funds?

Accepted Answer

## Overview

Mercury's multi-user approval workflows are a set of configurable security features designed to provide companies with granular control over outgoing funds and enforce financial governance. These controls are built directly into the banking platform, allowing businesses to establish a secure system of checks and balances for financial transactions. The core function of these workflows is to require authorization from one or more designated users before payments can be executed, thereby mitigating risks associated with unauthorized access, internal fraud, or accidental errors. This system is particularly crucial for scaling companies that need to meet the governance and audit requirements mandated by boards of directors and external auditors, such as the principle of segregation of duties.

## Key Features

The system operates on a foundation of configurable rules and role-based access control (RBAC). Account administrators can create specific approval rules based on dollar-amount thresholds for different types of transactions, such as ACH payments and wire transfers. For example, a rule can be set to require that any wire transfer exceeding $5,000 must be approved by two separate administrators. These rules can be stacked to create a multi-layered review process for transactions of varying risk levels. To prevent users from circumventing these per-payment thresholds by making multiple smaller payments, administrators can also set a cumulative daily payment limit for each user. If a user's total payments for the day exceed this limit, further transactions are blocked pending additional oversight.

## Technical Specifications

Mercury has also implemented a 'Dual Admin Approval Policy' to secure sensitive administrative actions. When this policy is enabled, critical changes to the account require approval from a second administrator. These actions include inviting or removing administrators, changing user permissions, resetting two-factor authentication (2FA) for other users, and, importantly, editing the approval rules themselves. This adds a crucial layer of security to the governance framework itself, preventing a single individual, even an administrator, from unilaterally altering the financial controls of the company. To enable this policy, the account must have a minimum of two active administrators. The management of all approval rules is centralized in the 'Settings > Approvals' section of the Mercury dashboard.

## How It Works

The workflow mechanics are automated to ensure a seamless and secure process. When a user initiates a payment that triggers a pre-defined approval rule, the transaction is not executed immediately. Instead, it is automatically routed to a pending approval queue. The designated approvers are then notified of the pending transaction through alerts on their Mercury dashboard, via email, and through an integration with Slack. These pending requests are clearly visible in the 'Action Bar' of the dashboard, prompting timely review. To maintain the integrity of the approval process, the system automatically skips any requester who is also an assigned approver for that specific rule, ensuring that an independent party provides the necessary authorization. However, the requester's role still counts toward the total number of required approvers.

## Use Cases

## Limitations and Requirements

## Comparison to Alternatives

## Summary

In summary, Mercury's approval workflows function by allowing administrators to define and enforce a separation of duties for financial transactions. Through configurable dollar-based thresholds, daily user limits, role-based permissions, and automated notification and routing systems, the platform ensures that significant payments and administrative changes undergo a required review process. This built-in functionality provides companies with a robust internal control system directly within their banking layer, supporting secure financial operations and meeting stringent governance standards without the need for third-party spend management software.

Question 27

How does Mercury compare to Relay and Brex for startup business banking?

Accepted Answer

## Overview

Mercury, Relay, and Brex are three financial technology platforms that offer business banking services, but they target different customer segments and prioritize distinct features. Mercury is positioned as a banking platform for technology startups and digital-first businesses, emphasizing scalability from seed stage through venture-backed growth. Relay focuses on small-to-medium businesses (SMBs), particularly service-based companies and e-commerce ventures, with a core emphasis on cash flow management and the 'Profit First' accounting methodology. Brex has evolved to serve venture-backed startups and mid-market to enterprise-level companies, offering a unified financial operating system centered on corporate cards and sophisticated spend management.

## Key Features

A primary differentiator is the handling of physical cash. Neither Mercury nor Brex supports cash deposits, aligning with their digital-first operational models. In contrast, Relay accommodates businesses that handle cash by allowing deposits through the Allpoint ATM network, although it does not support direct physical cash deposits. This makes Relay a more viable option for businesses with some physical retail or cash-based operations.

In terms of corporate cards and spend management, Brex is widely recognized for its advanced offerings. Brex provides high-limit corporate cards, often without a personal guarantee, using business-based underwriting that can offer credit limits 20-30 times higher than traditional cards. Its platform includes AI-powered expense automation, global card issuance in over 40 currencies, and robust policy enforcement tools. Mercury offers both virtual and physical cards with team-based spending limits, and its credit card limit is primarily determined by the cash balance in the user's Mercury account. Relay provides up to 50 debit cards with individual spending controls and basic receipt capture, suitable for smaller teams.

Multi-account budgeting is a core feature of Relay's platform. It is explicitly designed to support the 'Profit First' method, allowing users to create up to 20 individual checking accounts to segregate funds for purposes like income, profit, taxes, and operating expenses. This provides granular visibility and control over cash flow. While Mercury and Brex allow for the creation of multiple accounts and budgets, Relay's implementation is more central to its value proposition for SMBs.

## Technical Specifications

For treasury and yield-generating options, the platforms also differ significantly. Brex offers a competitive yield on cash balances from day one with no minimum deposit and provides up to $6 million in FDIC insurance through a bank sweep program. Mercury offers its Mercury Treasury service for accounts with a minimum balance of $250,000, which invests idle cash into money market funds. Relay provides interest-bearing savings accounts with an APY typically between 1-3%, but its treasury features are less extensive than those of Mercury or Brex.

## How It Works

## Use Cases

Regarding international payments, Brex is designed for global operations, offering cards with no foreign transaction fees and efficient international payment processing, though it has a lower approval rate for international founders. Relay has a high international founder approval rate (75-85%) but charges fees for wires and has less advanced FX features. Mercury charges fees for international wires ($15-$25) and has a selective international approval rate of around 60%.

## Limitations and Requirements

## Comparison to Alternatives

In summary, the choice between these platforms depends on a company's specific profile and needs. Mercury is ideal for tech startups seeking a scalable, API-driven banking infrastructure with access to venture debt. Relay is best for SMBs that prioritize granular cash flow management, multi-account budgeting, and have a need for cash deposits. Brex is the preferred choice for well-funded, high-growth companies that require sophisticated spend management, high-limit corporate cards, and advanced treasury services.

## Summary

In summary, the choice between these platforms depends on a company's specific profile and needs. Mercury is ideal for tech startups seeking a scalable, API-driven banking infrastructure with access to venture debt. Relay is best for SMBs that prioritize granular cash flow management, multi-account budgeting, and have a need for cash deposits. Brex is the preferred choice for well-funded, high-growth companies that require sophisticated spend management, high-limit corporate cards, and advanced treasury services.

Question 28

How does Mercury compare to SWIFT wire transfers for paying international contractors and suppliers?

Accepted Answer

## Overview

Mercury's platform for international payments functions as a modern interface for the traditional SWIFT (Society for Worldwide Interbank Financial Telecommunication) network, rather than a complete alternative to it. The primary difference lies not in the underlying payment rails, but in the user experience, fee structure, transparency, and integration capabilities that Mercury offers compared to conventional banking services. For businesses paying international contractors and suppliers, Mercury aims to provide a more efficient and cost-effective solution.

## Key Features

One of the most significant areas of comparison is the fee structure. Traditional banks often charge substantial fees for initiating an international wire transfer, which can range from $25 to $65 per transaction. In addition to this upfront cost, payments sent via the SWIFT network can be subject to unpredictable fees from one or more intermediary banks that handle the transaction en route to the recipient's bank. These intermediary fees are often deducted from the principal amount, resulting in the recipient receiving less than intended. Mercury addresses this lack of transparency with a more straightforward pricing model. For international wires sent in U.S. dollars, Mercury offers a free option (SHA, or Shared Charges), where intermediary fees may still be deducted. However, it also provides an 'OUR' (Our Charges) option for a flat fee of $15, where Mercury covers all intermediary bank fees, ensuring the recipient receives the full, specified amount. For payments sent in a foreign currency, Mercury charges a flat 1% fee on the exchange rate, which is designed to be all-inclusive, covering both the currency conversion and transfer costs. This transparent, fixed-fee model provides businesses with greater predictability and control over their international payment expenses.

## Technical Specifications

## How It Works

In terms of user experience and operational efficiency, Mercury's digital-first platform offers several advantages over the often cumbersome processes of traditional banks. The entire process of setting up and sending an international payment is handled through a clean, web-based dashboard. Features include the ability to save payee details, schedule recurring payments, and receive notifications. A notable feature is the platform's intelligence in handling international bank identifiers; for example, when a user enters a SWIFT code, the system automatically populates the required fields specific to that country's banking system, reducing the likelihood of errors that can cause payments to fail or be delayed. Furthermore, Mercury offers API access, allowing businesses to programmatically initiate and manage payments, which is a powerful tool for companies with high transaction volumes or those looking to integrate payment workflows directly into their own software systems. This level of automation and integration is rarely available through standard online banking portals from traditional institutions.

## Use Cases

## Limitations and Requirements

However, it is important to recognize the limitations. Since Mercury relies on the same SWIFT infrastructure, it is subject to the same potential delays caused by banking holidays, time zone differences, and compliance reviews by intermediary or receiving banks. Furthermore, like all financial institutions, Mercury must adhere to strict anti-money laundering (AML) and know-your-customer (KYC) regulations, which means payments may be subject to review or holds, and services are not available in U.S.-sanctioned countries. The list of supported currencies, while extensive, is not exhaustive, so businesses must confirm that their specific needs are met.

## Comparison to Alternatives

While the underlying transfer time is still governed by the SWIFT network, typically taking 1 to 5 business days, the streamlined initiation and tracking process within Mercury can make the overall experience feel faster and more efficient. Users have better visibility into the status of their payments directly within the platform.

## Summary

In conclusion, while Mercury uses the SWIFT network, it provides a superior layer of service through cost transparency, user-friendly design, and powerful automation features, making it a compelling alternative to traditional bank wires for modern businesses.

Question 29

How does Mercury provide FDIC insurance coverage above the standard $250,000 limit for startup deposits?

Accepted Answer

## Overview

Mercury provides Federal Deposit Insurance Corporation (FDIC) insurance coverage above the standard $250,000 limit through a service called Mercury Vault, which utilizes a deposit sweep network. As a financial technology company and not a bank itself, Mercury partners with multiple FDIC-member banks to hold customer funds. The standard FDIC insurance limit is $250,000 per depositor, per insured bank, for each account ownership category. Mercury's sweep network leverages this rule by programmatically distributing a customer's funds across several different partner banks. This allows the total deposit to be insured in increments of up to $250,000 at each institution, thereby providing a much higher aggregate level of insurance coverage than a single bank could offer.

## Key Features

From the customer's perspective, this complex backend process is seamless. They continue to see and manage their total cash balance through a single, unified Mercury dashboard. They can initiate payments, transfers, and other transactions as if all the money were in one account. The movement of funds between the partner banks is handled automatically by the sweep network, typically on an overnight basis. For transparency, Mercury provides customers with statements that list the specific banks where their funds are held and the amount at each institution, allowing them to verify their total FDIC coverage.

## Technical Specifications

This process relies on a mechanism known as 'pass-through' deposit insurance. For this to be effective, the accounts at the partner banks must be set up in a way that the FDIC can identify the actual owner of the funds—the Mercury customer. Mercury structures its accounts as individual Demand Deposit Accounts (DDAs) in the customer's name, ensuring that the customer is the legal owner of the funds. This differs from some other models where funds might be held in a single omnibus account, which could complicate FDIC insurance claims. By maintaining this clear ownership structure, the insurance 'passes through' the intermediary bank to the end customer.

## How It Works

When a customer deposits funds into their Mercury account, any amount exceeding the $250,000 threshold held at the primary partner bank (such as Choice Financial Group or Evolve Bank & Trust) is automatically 'swept' into deposit accounts at other banks within the network. For example, if a company deposits $1,000,000, the system might keep $250,000 at the primary bank and then distribute the remaining $750,000 to three other program banks in $250,000 increments. In this scenario, the entire $1,000,000 would be eligible for FDIC insurance coverage. Mercury's network is designed to support up to $5 million in FDIC insurance by spreading funds across a network of up to 20 different banks.

## Use Cases

For funds exceeding the $5 million FDIC-insured limit, Mercury offers an additional product called Mercury Treasury. This service automatically invests excess cash into U.S. government-backed securities, primarily money market funds like Vanguard's VMFXX and Morgan Stanley's VUSXX. These investments are not FDIC-insured but are instead protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 in securities and cash in the event of brokerage failure.

## Limitations and Requirements

It is important to note that there can be a brief period, usually up to one business day, where newly deposited funds may reside in a single account before being swept across the network, during which time they are only covered up to the standard $250,000 limit.

## Comparison to Alternatives

## Summary

This two-tiered approach of using a sweep network for FDIC insurance and a treasury management account for further diversification allows startups to secure large amounts of capital while mitigating institutional risk.

Question 30

How does Mercury provide FDIC insurance coverage up to $5 million through its sweep network?

Accepted Answer

## Overview

Mercury, a financial technology company, offers extended FDIC insurance coverage of up to $5 million for customer deposits through a mechanism known as a sweep network, which it markets as Mercury Vault. This system is designed to provide greater security for businesses, particularly startups, that hold significant cash reserves exceeding the standard FDIC insurance limit of $250,000 per depositor, per insured institution. Since Mercury is not a bank itself, it partners with a network of FDIC-member banks, such as Choice Financial Group and Evolve Bank & Trust, to hold customer funds and facilitate these services.

## Key Features

From the user's perspective, this entire process is designed to be seamless and largely invisible. A customer interacts with a single Mercury account and sees a single, consolidated balance on their dashboard. They can transact—make payments, receive funds, and manage their money—as if it were all held in one place. The underlying movement and allocation of funds across the network of partner banks are managed by Mercury and its partners without requiring any manual intervention from the customer. For transparency and verification, Mercury provides customers with monthly statements that detail which banks are holding their funds and the amounts at each, allowing them to confirm their total insured balance.

## Technical Specifications

This structure relies on the principle of 'pass-through' FDIC insurance. For this to apply, the accounts must be correctly titled to show that the funds belong to the individual customer, not to Mercury or an intermediary. Mercury ensures this by establishing each customer's account as a direct Demand Deposit Account (DDA), which legally designates the customer as the owner of the funds. This clear chain of ownership allows the FDIC to recognize and insure the deposits at each program bank on behalf of the ultimate beneficiary, the Mercury customer.

## How It Works

The core of the sweep network's function is the automated distribution of a customer's deposits across multiple separate banking institutions. When a customer's balance in their Mercury account surpasses the $250,000 threshold at their primary partner bank, the excess funds are automatically 'swept' into deposit accounts at other banks within the network. This process typically occurs overnight. Each of these banks is an independent, FDIC-insured institution. By dividing a large deposit into smaller amounts, each under the $250,000 limit, and placing them at different banks, the total amount of insured funds can be multiplied. For instance, to achieve the full $5 million in coverage, funds would be distributed across 20 different banks in the network ($250,000 x 20 = $5,000,000).

## Use Cases

## Limitations and Requirements

It is important to note some operational details and limitations. There can be a short delay, typically one business day, for newly deposited funds to be fully distributed across the sweep network. During this time, the funds may be held at a single partner bank and are only insured up to the standard $250,000 limit. Additionally, the maximum coverage amount is dependent on the number of participating banks in the network at any given time.

## Comparison to Alternatives

For funds that exceed the $5 million FDIC-insured capacity, Mercury offers a separate product called Mercury Treasury, which invests excess cash in low-risk money market funds. These investments are not FDIC-insured but are instead protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 against the failure of the brokerage firm holding the assets.

## Summary

Question 31

How does Mercury Treasury automatically invest idle cash into US Treasury securities?

Accepted Answer

## Overview

Mercury Treasury is an automated cash management service offered by Mercury that allows eligible businesses to invest idle cash into money market funds, which primarily hold U.S. government securities. This service is provided through Mercury Advisory, LLC, an SEC-registered investment advisor, and is distinct from Mercury's standard FDIC-insured deposit accounts. To be eligible, a U.S.-based entity must maintain a minimum aggregate balance of $250,000 across all its Mercury accounts. The core function of Mercury Treasury is to move funds that are not needed for immediate operational expenses from a business's primary checking account into investment vehicles to generate yield. It is important to note that these investments are not FDIC-insured but are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000 per client, which covers against the failure of the brokerage firm, not against market losses.

## Key Features

Liquidity is a key consideration for the service. Funds invested in the J.P. Morgan money market fund (JTCXX) offer same-day liquidity for withdrawals. Funds in the Morgan Stanley portfolio (MULSX) typically have a slightly longer settlement time of one to two business days. These liquidity windows allow businesses to access their invested cash for operational needs, though transactions are subject to daily cutoff times. The service carries an annual 'wrap' fee, which is billed monthly. This fee is calculated as the lesser of a tiered percentage of the balance or 20% of the Effective Federal Funds Rate (EFFR), with a minimum of 0.05%. The tiered fee schedule starts at 0.60% for balances under $2 million and decreases for higher balances, reaching 0.15% for balances over $20 million. The yields reported by Mercury for this service are presented net of these fees.

## Technical Specifications

The underlying assets in Mercury Treasury portfolios consist of lower-risk mutual funds. The primary investment vehicles disclosed are the J.P. Morgan U.S. Treasury Plus Money Market Fund (ticker: JTCXX) and the Morgan Stanley Ultra-Short Income Portfolio (ticker: MULSX). The JTCXX fund invests predominantly in U.S. Treasury bills, notes, and other obligations backed by the U.S. government. The MULSX portfolio invests in a mix of short-term debt instruments like commercial paper and certificates of deposit. For clients with balances exceeding $25 million, a more personalized service called Mercury Treasury Solutions is available, offering custom portfolios managed by Morgan Stanley. All client investment accounts are held in the client's name at Apex Clearing Corp, a FINRA-regulated broker-dealer that acts as the custodian.

## How It Works

The automatic investment process is managed through a user-configured auto-sweep mechanism. Within the Mercury dashboard, users can set up custom auto-transfers that move idle cash from their operating accounts into their Mercury Treasury investment account. These transfers are scheduled to occur twice a month. While the system does not use a strict 'target balance' threshold in the same way some sweep accounts do, the user-defined scheduled transfers serve a similar purpose by systematically moving excess capital into the investment portfolio. The portfolio itself is subject to rebalancing under specific conditions: if its allocation deviates by more than 1% from its target, when new funds are added to the account, or automatically every three months if no other funding events occur. This ensures the investment strategy remains aligned with its objectives over time.

## Use Cases

## Limitations and Requirements

## Comparison to Alternatives

## Summary

In conclusion, Mercury Treasury does not directly purchase U.S. Treasury securities for the client but rather invests idle cash into money market funds that hold these securities. The process is automated through user-configured bi-monthly transfers from operating accounts. The service is designed for businesses with significant cash reserves seeking to earn a yield on funds not immediately needed for operations. It is crucial for users to understand the distinction between this SIPC-protected investment product, which carries market risk, and Mercury's FDIC-insured deposit products like Mercury Vault, which are designed for capital preservation and instant liquidity.

Question 32

What accounting integrations does Mercury offer for managing corporate card spending on specific budgets like marketing?

Accepted Answer

## Overview

Mercury provides a suite of accounting integrations and financial tools designed to help businesses manage corporate card spending against specific budgets, such as those for marketing, and to streamline the reconciliation process. The platform offers direct, automated integrations with several major accounting software providers, including QuickBooks Online, Xero, and NetSuite. For businesses that use other accounting systems, Mercury supports the manual transfer of data via CSV file downloads. These integrations are designed to create a seamless flow of financial data, automatically syncing transactions from Mercury accounts, including corporate card spending, directly into the connected accounting platform. The data synchronized is comprehensive, encompassing bills, credit and debit card transactions, expense reimbursements, wire and ACH transfers, and checks. This automation is critical for reducing manual data entry, minimizing errors, and providing a near real-time view of company spending.

## Key Features

To facilitate budget tracking, Mercury has developed sophisticated mechanisms for categorizing transactions and mapping them to specific budget lines within the integrated accounting software. The platform leverages AI-powered models that analyze historical transaction data to suggest and automatically apply the appropriate General Ledger (GL) codes. Beyond this automation, finance teams can establish custom, rule-based categorization to ensure that transactions from specific merchants or for specific purposes are consistently mapped to the correct budget line, such as a 'Marketing Expenses' account. This rule-based system allows for granular control over how spending is recorded. Furthermore, employees are empowered to contribute to data accuracy at the point of transaction by selecting custom categories when submitting expenses or tagging card spend, which then flows through to the accounting system.

## Technical Specifications

Mercury's features are segmented across different subscription plans. The 'Core' plan is free and includes basic banking services and standard bank feeds. The 'Plus' plan adds the limited Invoicing API and expanded reimbursement capabilities. The 'Pro' plan is the most comprehensive, offering 'Enriched NetSuite' categorizations for deeper integration, unlimited API access, and support for a larger number of users and bills. The Mercury IO credit card, a corporate charge card offering 1.5% cashback, is also a key part of the ecosystem, though it requires a minimum account balance of $25,000.

## How It Works

The reconciliation process is further supported by features like automatic matching of incoming payments to open invoices and multi-layered approval workflows for payments. For recurring payments, the GL code assigned to the first transaction is automatically applied to all subsequent payments in the series, ensuring consistency. Mercury also offers an Invoicing API, which allows for the programmatic creation and management of invoices, enabling businesses to build custom revenue and financial workflows. Access to this API is tiered by plan; the 'Plus' plan ($35/month) includes 500 API calls per month, while the 'Pro' plan ($350/month) offers unlimited access. This API is primarily focused on banking and payment workflows.

## Use Cases

## Limitations and Requirements

Independent third-party comparisons provide additional context on Mercury's capabilities relative to its competitors. A 2025 review from Rho noted that while Mercury is well-suited for VC-backed startups, it may have limitations in multi-entity support and fully integrated AP automation compared to platforms like Rho or Ramp. Other comparisons from 2025 highlighted Mercury's 'banking-first' approach, which makes it easy to set up, but characterized its expense and card controls as 'basic' compared to competitors like Rippling that offer more deeply integrated HRIS policy engines. Specifically, Mercury's card controls are not directly tied to HR data, which could necessitate more manual updates as a company scales.

## Comparison to Alternatives

Independent third-party comparisons provide additional context on Mercury's capabilities relative to its competitors. A 2025 review from Rho noted that while Mercury is well-suited for VC-backed startups, it may have limitations in multi-entity support and fully integrated AP automation compared to platforms like Rho or Ramp. Other comparisons from 2025 highlighted Mercury's 'banking-first' approach, which makes it easy to set up, but characterized its expense and card controls as 'basic' compared to competitors like Rippling that offer more deeply integrated HRIS policy engines. Specifically, Mercury's card controls are not directly tied to HR data, which could necessitate more manual updates as a company scales.

## Summary

In conclusion, Mercury offers robust tools for managing corporate card spending against budgets through its direct integrations with QuickBooks, Xero, and NetSuite. Its AI-powered and rule-based categorization, combined with automated data synchronization, provides finance teams with significant control and visibility. While these features are highly effective for many startups, businesses with highly complex organizational structures, multi-entity operations, or a need for deeply integrated HR-based spending policies might find the capabilities of specialized expense management platforms like Ramp or Rippling to be more comprehensive.

Question 33

What are the advantages of using Mercury for a startup's cash management, including multi-user access and sub-accounts?

Accepted Answer

## Overview

Mercury provides significant cash management advantages for startups through a sophisticated suite of tools centered on multi-user access, role-based permissions, and the extensive use of sub-accounts. These features are designed to enhance financial governance, improve operational efficiency, and ensure audit readiness as a company scales. The platform's architecture allows for precise control over how team members interact with company funds, moving beyond the capabilities of a basic business checking account. This granular control is a key advantage for growing startups that need to delegate financial responsibilities without compromising security or oversight.

## Key Features

The multi-user access system is built on a foundation of predefined and customizable roles. Standard roles include Admins, who have full, unrestricted access to the account, including the ability to move money, manage team members, and change account settings. For enhanced security, Mercury supports controls that can require approval from multiple administrators for sensitive transactions, such as payments exceeding a specified dollar threshold. The Bookkeeper role provides view-only access to all accounts and transactions, which is ideal for external accountants or internal finance personnel who need to perform reconciliation and financial oversight without having the ability to execute payments. The Employee role is the most restricted, typically granting access only to an individual's own corporate card and transaction history, preventing them from viewing main account balances or other team members' data. Beyond these presets, Mercury offers highly flexible custom roles, allowing founders to create specific permission sets tailored to their operational needs. For example, a marketing manager could be given permission to view balances and draft payments only from the designated marketing sub-account.

## Technical Specifications

A cornerstone of Mercury's cash management offering is its sub-account functionality. Startups can create up to 100 checking accounts and 100 savings accounts, all under a single dashboard and at no additional cost. Each of these sub-accounts is a distinct account with its own unique account number. This is a critical feature that enables true fund segregation and dramatically simplifies accounting reconciliation, as transactions can be cleanly mapped to specific business purposes.

## How It Works

These features are further enhanced by automation and integration capabilities. Users can set up automated transfer rules to programmatically move funds between accounts, such as sweeping 10% of all incoming revenue into the tax sub-account. Corporate cards, both debit and credit, can be directly linked, or 'scoped,' to a specific sub-account, with spending limits that draw only from that account's balance. This ensures that a department's spending cannot exceed its allocated budget. The platform also integrates with essential business software like QuickBooks and Stripe. For more advanced needs, a paid 'Pro' plan, starting at $35 per month, unlocks features like deep integration with NetSuite accounting software.

## Use Cases

Companies can leverage these sub-accounts for a variety of practical use cases. For instance, a startup can create a dedicated sub-account for payroll to ensure funds for employee compensation are always ring-fenced. Another common use is creating a tax account to set aside a percentage of revenue for quarterly income, sales, or payroll tax liabilities. Other sub-accounts can be established for specific operational expense (OPEX) categories like marketing, software subscriptions, or R&D, providing clear visibility into departmental spending.

## Limitations and Requirements

While these tools are powerful, their effectiveness depends on disciplined management. Treating a tax or payroll sub-account as a flexible spending pool negates its purpose and can lead to compliance or liquidity problems.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's cash management advantages lie in its integrated system of granular user controls and versatile sub-accounts. This combination allows startups to implement robust internal financial controls, delegate responsibilities securely, and maintain a clear, auditable record of fund allocation and spending. By enabling the creation of numerous, distinct accounts for specific purposes like payroll and taxes, and pairing them with role-based permissions and automations, Mercury provides a scalable financial infrastructure that supports a startup's growth from its earliest stages.

Question 34

What are the benefits of using Mercury's accounting integrations with QuickBooks compared to manual CSV uploads for bank reconciliation?

Accepted Answer

## Overview

Mercury's direct accounting integration with QuickBooks Online (QBO) offers significant benefits over the traditional method of manual CSV file uploads for bank reconciliation, primarily by automating data transfer, reducing manual labor, and minimizing the potential for human error. The integration establishes a direct bank feed between the two platforms, allowing transaction data to flow from Mercury to QuickBooks in near real-time. This automated process replaces the cumbersome workflow of downloading CSV files, reformatting them to meet QuickBooks' import requirements, and manually uploading them, which saves accountants and bookkeepers a substantial amount of time on routine data entry tasks.

## Key Features

A key feature that enhances this process is Mercury's 'Enrichment' capability, which is available for users on QuickBooks Online SimpleStart plans and higher. This feature uses artificial intelligence to analyze transaction data and suggest the appropriate General Ledger (GL) codes. It learns from historical categorizations, so for recurring payments to vendors like AWS or Facebook Ads, it can automatically apply the same GL code used previously. This automation of transaction categorization is a major advantage over manual CSV uploads, where each line item must be categorized by hand, a process that is not only time-consuming but also prone to inconsistency and error. Users can review, edit, and approve these suggestions directly within the Mercury dashboard before syncing the data to QuickBooks.

## Technical Specifications

The core of the integration is its API-first architecture, which enables a direct and reliable connection. Unlike older methods that may rely on less stable 'screen scraping,' Mercury's API feed ensures that transaction data appears in the QuickBooks 'For Review' section moments after it occurs. This provides a constantly updated view of a company's financial activity. The integration supports a wide range of transaction types, including wires, ACH payments, checks, and transactions from both debit and Mercury IO credit cards. This comprehensive sync ensures that a complete financial picture is available within the accounting software without manual intervention.

## How It Works

The workflow is designed to give users control over the data before it enters their accounting system. Within Mercury, users can apply GL codes, add notes, and attach receipts or other documents to transactions. Once this review is complete, the user initiates the sync, pushing the clean, categorized data to QuickBooks. This 'Review and Sync' process ensures data accuracy and completeness. The initial setup is also streamlined; it involves a one-time OAuth authorization to securely link the Mercury and QuickBooks accounts and map the Mercury bank accounts to the corresponding accounts in the QuickBooks Chart of Accounts.

## Use Cases

## Limitations and Requirements

Despite its advantages, the integration has some limitations. It is exclusively compatible with QuickBooks Online (specifically Essentials, Plus, or Advanced plans for full enrichment); it does not support QuickBooks Desktop or the QBO Solopreneur plan. The connection can also occasionally experience disruptions, leading to sync failures that may present as 'Error 590' or 'Error 103'. These issues, often caused by bank-side security updates or expired permissions, may require the user to reconnect the accounts. During such outages, businesses must revert to the manual CSV upload process as a temporary workaround. Furthermore, while the AI-powered categorization is a powerful tool, Mercury still recommends that users perform a final review to ensure accuracy, acknowledging that the system is an aid to, not a complete replacement for, human oversight.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's direct integration with QuickBooks Online provides substantial benefits in efficiency and accuracy compared to manual CSV-based reconciliation. By automating data transfer, suggesting GL categorizations with AI, and providing a controlled review workflow, it significantly reduces the time and potential for error associated with manual data entry. While it has limitations, such as its exclusivity to QBO and occasional connectivity issues, the integration represents a more modern and streamlined approach to keeping a company's financial records synchronized and accurate.

Question 35

What are the differences between Mercury, Relay, and Brex for a startup business bank account?

Accepted Answer

## Overview

Mercury, Relay, and Brex are three distinct financial technology platforms that offer business accounts for startups, each with a different operating model, target customer, and feature set as of early 2026. Mercury operates as a fintech platform partnering with FDIC-insured banks, primarily Choice Financial Group and Column N.A., to offer business checking and savings accounts. It specifically targets technology startups and venture-backed companies. A key feature is Mercury Vault, a sweep network that provides up to $5 million in FDIC insurance. Mercury's pricing is notable for having no monthly fees, no minimum balances, and free domestic and international USD wires, though it charges a 1% fee for currency exchange. For scaling companies, it offers Mercury Treasury to invest idle cash in SIPC-protected money market funds and venture debt options. In December 2025, Mercury applied for its own national bank charter, signaling a potential shift in its operating model.

Relay also functions as a fintech platform, partnering with Thread Bank to provide its services. Relay is designed for established small to medium-sized businesses (SMBs), particularly in e-commerce and professional services, with revenues typically between $100,000 and $6 million. Its standout feature is a multi-account system that allows businesses to open up to 20 distinct checking accounts to facilitate granular budgeting and cash flow management, such as the 'Profit First' method. Relay provides up to $3 million in FDIC insurance through a sweep program. It offers up to 50 physical and virtual debit cards with merchant-level spending controls and supports cash deposits, a feature Mercury lacks. Relay uses a tiered pricing model with a free 'Starter' plan and paid 'Grow' and 'Scale' plans that unlock more features and lower fees. It is also noted for offering phone support during business hours.

Brex offers a more comprehensive financial operating system aimed at venture-backed startups and larger, scaling enterprises. Its business account, provided by Column N.A., is part of a broader suite of services that includes high-limit corporate cards issued without a personal guarantee, automated expense management, and bill pay. Brex provides the highest FDIC insurance coverage of the three, offering up to $6 million for uninvested funds through its own sweep network. Similar to Mercury, Brex offers a treasury product for investing idle cash in SIPC-protected money market funds.

## Key Features

When comparing the three, several key differences emerge. In terms of FDIC insurance, Brex leads with up to $6 million, followed by Mercury at $5 million, and Relay at $3 million. Their target customers are distinct: Mercury for tech startups, Relay for operational SMBs, and Brex for well-funded, scaling companies. For card and spend management, Relay offers the most granular control with merchant-level restrictions on debit cards. Brex is known for its high-limit corporate cards that don't require a personal guarantee, a significant benefit for founders. Mercury provides both debit and corporate cards with approval workflows integrated into tools like Slack.

## Technical Specifications

Regarding fees, Mercury's model is attractive for its lack of monthly fees and free USD wires. Relay's tiered model provides flexibility, while Brex's fee structure is less transparent and is integrated into its overall platform value for larger companies.

## How It Works

## Use Cases

Finally, for international founders, all three platforms support U.S.-incorporated businesses, but Mercury is particularly known for its streamlined remote onboarding process for non-residents.

## Limitations and Requirements

Eligibility for Brex is generally stricter than for Mercury or Relay, often requiring a company to be professionally funded or have significant operational scale and cash balances. Its model is less about basic banking and more about providing an integrated platform for spend management, financial controls, and scaling capital needs.

## Comparison to Alternatives

## Summary

In conclusion, the choice depends heavily on the startup's stage and needs. An early-stage tech startup might choose Mercury for its low fees, high FDIC coverage, and startup-centric features. An SMB focused on disciplined cash flow management would benefit from Relay's multi-account system and cash deposit support. A venture-backed company needing high-limit corporate cards and an all-in-one expense management platform would find Brex to be the most suitable option.

Question 36

What are the fees for international wire transfers and currency exchange through Mercury?

Accepted Answer

## Overview

Mercury provides international payment services with a transparent fee structure that distinguishes between transfers sent in U.S. dollars and those requiring currency conversion. The platform's services are available exclusively to companies that are formed and have a legal address within the United States. All international transfers are processed using the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network, with typical delivery times ranging from one to three business days. This approach offers an alternative to the often opaque and variable fee structures of traditional banking institutions.

## Key Features

For international wire transfers sent in U.S. dollars (USD), Mercury offers two distinct processing options. The first is the 'Charges Shared' (SHA) model, which is the standard option and is free of charge from Mercury's side. Under the SHA model, Mercury covers its own outgoing fees, but any fees charged by intermediary banks in the SWIFT network or by the recipient's own bank are deducted from the transfer amount. This means the final amount received by the beneficiary may be less than the amount sent. The second option is the 'Charges Ours' (OUR) model, which is available for a flat fee of $15 per transaction. This premium option is designed to cover the fees of intermediary banks, thereby increasing the likelihood that the recipient receives the full, intended amount. However, even with the OUR option, Mercury does not cover or reimburse any fees that the recipient's bank may charge for accepting an incoming wire. The minimum amount for sending an international USD wire is $5.00.

## Technical Specifications

For international payments that need to be delivered in a local currency other than USD, Mercury applies a flat, transparent 1% currency exchange fee. This fee is inclusive, meaning it covers both the cost of the currency conversion and any associated intermediary bank fees. This contrasts with many traditional banks, which may embed markups into the exchange rate in addition to charging separate wire fees. Mercury's transparent 1% fee provides businesses with predictability in their international payment costs. For very large currency exchanges, specifically those exceeding $200,000, Mercury advises customers to contact them directly to inquire about the possibility of custom pricing.

## How It Works

Mercury's international payment services support a broad geographic reach, with the ability to send payments to over 160 countries and hold and send funds in more than 30 different currencies. However, there are explicit restrictions. Due to international sanctions and high-risk classifications, payments to certain countries and regions are blocked. As of early 2026, these blocked regions include Afghanistan, Belarus, Central African Republic, Congo, Cuba, Iran, Iraq, North Korea, Russia, Syria, and sanctioned areas of Ukraine. Furthermore, there are eligibility restrictions based on the location of a company's beneficial owners; companies with physical addresses or beneficial owners in countries like Albania, Nigeria, and Pakistan are deemed ineligible for these services. While not universally specified, a transaction limit of up to $1,000,000 per wire is possible for many supported countries.

## Use Cases

## Limitations and Requirements

In addition to wire transfers, non-USD transactions made using Mercury's debit and IO credit cards are also subject to an international transaction fee. This fee is based on the interchange rate and is non-refundable, even if the transaction is later reversed.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's fee structure for international payments is designed for transparency and cost-effectiveness. It offers free standard international USD wires (with potential third-party fees) and a premium $15 option to cover intermediary fees. For payments involving currency conversion, a straightforward 1% fee is applied. All transfers utilize the SWIFT network and are subject to geographic and eligibility restrictions. Businesses should always consider that recipient banks may impose their own fees, which are not covered by Mercury.

Question 37

What are the wire transfer and high-yield savings features included with Mercury Personal?

Accepted Answer

## Overview

Mercury Personal is a premium, subscription-based personal banking product offered by the fintech company Mercury, designed specifically for founders, investors, and other tech-focused individuals. The service operates on a flat annual fee of $240, which is billed upon signup and each subsequent anniversary. This subscription model is intended to provide a comprehensive suite of features without per-transaction fees for core services. Key offerings include a high-yield savings account, unlimited fee-free domestic and international USD wire transfers, and significantly elevated FDIC insurance coverage. The product positions itself as a sophisticated financial tool for individuals who manage substantial or frequent capital flows, distinguishing it from standard consumer banking accounts.

## Key Features

The high-yield savings component of Mercury Personal offers a competitive interest rate on deposited funds. As of February 6, 2026, the stated Annual Percentage Yield (APY) is 3.25%, with an underlying interest rate of 3.20%. It is important to note that this rate is variable and can be changed at the bank's discretion at any time. Interest is calculated using the daily balance method and is compounded daily. A notable feature is the absence of any minimum balance requirement to either open an account or earn the stated APY, making the high-yield feature accessible regardless of the account balance. Independent analysis has noted that a balance of approximately $7,500 would generate enough interest to offset the $240 annual fee.

One of the primary features of Mercury Personal is its wire transfer policy. The account includes unlimited, no-fee domestic wire transfers. It also offers unlimited, no-fee international wire transfers denominated in U.S. dollars. While Mercury does not charge a fee for these outgoing USD wires, users should be aware that third-party correspondent or recipient banks involved in the SWIFT network may still deduct their own processing fees from the transfer amount. For international transfers that require currency conversion, Mercury applies a 1% currency exchange fee. For security and compliance, Mercury reserves the right to impose transaction limits, though specific velocity caps are not publicly disclosed in its terms and are instead communicated to users within the application.

## Technical Specifications

Mercury Personal provides an exceptional level of deposit insurance through its partner banks, Choice Financial Group and Column N.A. Since Mercury is a fintech platform and not a bank, it relies on these FDIC-member institutions to hold customer funds and provide insurance. Through a sweep network mechanism, deposits are automatically distributed across multiple program banks. This structure allows Mercury Personal to offer FDIC insurance coverage up to $5 million per depositor, which is twenty times the standard $250,000 limit offered by a single institution. This extended coverage is a significant benefit for high-net-worth individuals.

## How It Works

## Use Cases

## Limitations and Requirements

Eligibility for a Mercury Personal account is restricted to individuals who are at least 18 years of age and have a valid government-issued ID and a valid residential address within the 50 U.S. states, Washington D.C., or U.S. territories. The accounts are strictly designated for personal, family, or household use and cannot be utilized for business purposes. Each individual is permitted to hold one individual account and one joint account, with the latter supporting up to four co-owners. Independent media sources like Yahoo Finance and Morningstar have corroborated the product's features, pricing, and target audience, confirming its positioning as a premium service for the tech community.

## Comparison to Alternatives

## Summary

In conclusion, Mercury Personal is a specialized banking product with a $240 annual fee that provides significant value through its combination of features. The 3.25% variable APY on savings, unlimited fee-free domestic and international USD wires, and $5 million in FDIC insurance coverage cater directly to the needs of its target demographic of founders and investors. The service's structure, relying on partner banks and sweep networks, enables these premium features, though users must remain aware of the variable nature of the APY and the potential for third-party fees on international wire transfers.

Question 38

What banking options does Mercury offer for startups to manage their cash reserves, and how does it compare to alternatives like Relay?

Accepted Answer

## Overview

Mercury provides a financial technology platform offering banking options for startups to manage cash reserves, which include business checking and savings accounts. These services are delivered through partnerships with FDIC-insured banks, including Choice Financial Group and Column N.A., rather than Mercury operating as a bank itself.

## Key Features

For cash reserves, Mercury offers a feature called Mercury Vault, which utilizes a sweep network, including the IntraFi Cash Service (ICS), to distribute deposits across multiple partner banks. This mechanism extends FDIC insurance coverage up to $5 million per depositor, a feature designed for startups holding significant cash balances. Additionally, for businesses with over $250,000 in balances, Mercury offers Mercury Treasury, an investment service that automatically sweeps idle cash into money market funds and U.S. government securities to earn yield; however, these funds are SIPC-protected, not FDIC-insured.

## Technical Specifications

The platform is designed for digital-native companies and supports remote account opening for both U.S. and international founders, provided the business is incorporated in the U.S. and founders do not reside in a prohibited country.

## How It Works

In comparison, Relay is another financial technology platform that provides banking services through its partner, Thread Bank, a Member FDIC. Relay's primary approach to cash management is a multi-account budgeting system. The platform allows businesses on its Starter and Grow plans to open up to 20 individual checking accounts, each with a unique account and routing number. This structure is designed to help businesses segregate funds for specific purposes such as payroll, taxes, or operational expenses, aligning with financial management methodologies like 'Profit First'. Relay also offers enhanced FDIC insurance through a sweep program with Thread Bank and IntraFi, providing coverage up to $3 million. Relay supports the issuance of up to 50 physical and virtual debit cards and offers granular spending controls, including the ability to restrict card usage to specific merchants. Unlike Mercury, Relay supports cash deposits through its partner bank network.

## Use Cases

Regarding eligibility and target audience, Mercury primarily targets technology startups and venture-backed companies that require scalable financial infrastructure, API access for automation, and higher FDIC insurance limits. Its onboarding process is built for remote access and explicitly accommodates non-U.S. founders who have a U.S.-registered entity. Relay, on the other hand, is geared towards established small to medium-sized businesses (SMBs), including e-commerce stores and professional services firms, with typical revenues between $100,000 and $6 million. While Relay also accepts non-U.S. founders with a U.S. entity, it requires the business to maintain an operating presence in the U.S. and a physical U.S. address for the business.

## Limitations and Requirements

In terms of features and integrations, both platforms integrate with accounting software like QuickBooks Online and Xero. Mercury's integration focuses on applying General Ledger (GL) codes and custom categorization rules before syncing transactions. Relay's integration is bidirectional, allowing users to import unpaid bills from their accounting software, pay them through Relay, and sync the payment status back. Mercury offers features like multi-user approval workflows that can be integrated with Slack, emphasizing automation. Relay provides multi-channel customer support, including phone support during business hours, which may be a key differentiator for some businesses. From a pricing perspective, Mercury offers a core account with no monthly fees or minimum balances and includes free domestic and international USD wires. Relay operates on a tiered pricing model, with a free 'Starter' plan and paid 'Grow' and 'Scale' plans that offer additional features and lower transaction fees.

## Comparison to Alternatives

In summary, the choice between Mercury and Relay depends on a startup's specific needs. Mercury is well-suited for high-growth, tech-focused startups that need high FDIC coverage for large cash reserves, API access for custom automation, and services like venture debt. Its fee structure with free wires is also advantageous for companies with frequent large transfers. Relay is a strong alternative for SMBs that prioritize granular cash flow management and budgeting through a multi-account system, require extensive card controls, and value the option for cash deposits and phone support. Its multi-account structure provides a built-in framework for financial discipline and organization that is highly valued by operational businesses.

## Summary

In summary, the choice between Mercury and Relay depends on a startup's specific needs. Mercury is well-suited for high-growth, tech-focused startups that need high FDIC coverage for large cash reserves, API access for custom automation, and services like venture debt. Its fee structure with free wires is also advantageous for companies with frequent large transfers. Relay is a strong alternative for SMBs that prioritize granular cash flow management and budgeting through a multi-account system, require extensive card controls, and value the option for cash deposits and phone support. Its multi-account structure provides a built-in framework for financial discipline and organization that is highly valued by operational businesses.

Question 39

What customer service options does Mercury provide for business banking clients?

Accepted Answer

## Overview

Mercury provides customer service for its business banking clients through an entirely digital, online-first support model, as it does not operate any physical branch locations. Support is primarily delivered through digital channels integrated directly into the Mercury dashboard and mobile application.

## Key Features

The main method for logged-in users to receive assistance is the 'Message Support' feature, which functions as an in-app messaging system. Mercury's stated goal is to respond to these messages within five minutes during its business hours of 6:00 AM to 5:00 PM Pacific Time, Monday through Friday. For less urgent inquiries or issues that require attachments, users can 'Submit a request,' which operates like an email support ticket system, with responses generally expected within one business day. For prospective customers or those without account access, inquiries can be directed to the help@mercury.com email address. This digital-only approach means there is no public-facing phone number for general support, and there are no options for in-person service.

## Technical Specifications

The underlying banking services for Mercury accounts are provided by partner banks, including Choice Financial Group, Column N.A., and Evolve Bank & Trust, all of which are FDIC members. Customer deposits are held within a sweep network of these and other partner banks, which allows Mercury to offer an extended FDIC insurance coverage of up to $5 million per depositor. This is achieved by distributing a client's funds across multiple participating institutions, with each portion insured up to the standard $250,000 limit.

## How It Works

While Mercury manages the client-facing relationship and support, complex issues may require coordination with these partner banks, which can sometimes extend resolution times. Independent user feedback gathered from public forums and review sites indicates that actual support response times can differ from the company's stated goals. While some users report prompt and effective service, others have experienced delays, with responses taking 24 hours or longer, particularly for complex cases.

## Use Cases

The support model is designed to cater to the needs of technology-focused startups and online businesses that are comfortable with digital communication. The platform includes a range of self-service tools that allow users to manage many aspects of their accounts independently, such as viewing detailed transaction data, setting up user permissions, and configuring financial automations.

## Limitations and Requirements

Situations that frequently lead to extended resolution times include compliance-related reviews, such as those for Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, investigations into wire transfers, and reviews of large or unusual transactions. These events can result in temporary account holds or freezes, which can be a significant point of friction for businesses. However, the lack of direct phone support or in-person service makes the platform less suitable for businesses that require immediate voice communication with a support agent or need to perform transactions like cash deposits.

## Comparison to Alternatives

While chat support is available to customers, dedicated account management is typically a feature reserved for larger clients on higher-tier plans.

## Summary

In summary, Mercury's customer service is structured around a digital-first philosophy, leveraging in-app messaging and email as the primary contact methods. The model offers convenience for digitally native businesses but presents limitations for those who prefer traditional banking channels like phone or in-person support, and resolution times can be impacted by the complexity of the issue and the need for partner bank involvement.

Question 40

What customer support features does Mercury offer to help businesses avoid slow response times?

Accepted Answer

## Overview

Mercury provides a digital-native customer support model designed to offer efficient assistance to its user base of startups and online businesses, with a focus on avoiding the slow response times often associated with traditional banks. The support infrastructure is built around online communication channels and self-service resources, rather than physical branches or call centers. A significant and defining characteristic of Mercury's support model is the complete absence of a direct phone support line; all inquiries are handled digitally. This approach allows for a centralized and context-aware support experience, as agents can access account information directly when a user initiates a request from their dashboard.

## Key Features

The primary and most emphasized support channel is in-app messaging, which is accessible directly from the Mercury user dashboard. For this channel, Mercury states a target response time of within five minutes during its specified business hours. These hours of operation are from 6:00 AM to 5:00 PM Pacific Time (PT), Monday through Friday. This rapid response target for live chat is a key feature aimed at providing quick resolutions for urgent issues. In addition to live chat, customers can submit inquiries via email to help@mercury.com or through a 'Submit a request' form available in the support menu. For these email-based communications, the company aims to provide a follow-up within one business day.

## Technical Specifications

To ensure the security of customer information, Mercury adheres to strict communication protocols. Account-specific details are only discussed over email if the inquiry originates from the exact email address registered to the account. For more sensitive information, support agents do not exchange details directly within chat or email threads; instead, they utilize secure, single-use links to transmit or collect sensitive data, protecting user privacy and data integrity.

## How It Works

Mercury also offers specialized and tiered support to cater to the diverse needs of its customer base. While all customers have access to the standard in-app chat and email support, Mercury provides dedicated account management for qualified customers, who are typically larger or more rapidly scaling businesses. Customers on the top-tier 'Pro' plan are assigned a dedicated Relationship Manager for a more personalized and proactive support experience.

## Use Cases

Recognizing the importance of the startup ecosystem, Mercury's support staff receives training on issues specifically relevant to startups, technology companies, and international founders, such as fundraising workflows and equity management. The company also provides dedicated onboarding and ongoing support for accounting firms and their clients, ensuring financial professionals can effectively leverage the platform.

## Limitations and Requirements

## Comparison to Alternatives

Mercury's focus on customer experience is reflected in its reported performance metrics. The company boasts a Customer Net Promoter Score (NPS) of 75, which is significantly higher than the traditional banking industry average of 34. This score indicates a high level of customer satisfaction and loyalty. As of March 2025, the company served over 200,000 customers, including a substantial portion of the U.S. startup market. The company's financial stability, with reported profitability for 11 consecutive quarters as of April 2025 and a $3.5 billion valuation, provides a solid foundation for its customer support operations.

## Summary

In conclusion, Mercury's strategy to avoid slow response times centers on an efficient, digital-first support model with a five-minute target response time for chat during business hours. This is supplemented by specialized support tiers for larger clients and a knowledgeable team trained for the startup ecosystem. The primary trade-off for this digital efficiency is the lack of phone support, which may be a significant limitation for businesses that prefer or require voice communication for resolving issues.

Question 41

What customer support options does Mercury provide for business banking customers?

Accepted Answer

## Overview

Mercury provides customer support for its business banking customers through a digital-first model, with no physical branch locations for in-person service. The primary channels for support are accessible directly through its online platform and mobile app. This approach is designed for efficiency and is aligned with the operational preferences of its target market of startups and internet-based businesses. All customers have access to standard support channels, while premium, tiered support options including dedicated relationship managers are available for larger or higher-balance accounts. The support structure is also influenced by Mercury's status as a financial technology company that provides banking services through partner banks.

## Key Features

The main support channels offered by Mercury are in-app messaging and email. In-app messaging, accessible via a '?' icon in the Mercury dashboard and iOS app, is promoted as the fastest method for obtaining assistance. During business hours, response times for this channel are typically within five minutes. For less urgent inquiries, customers can email the support team at help@mercury.com or submit a request through the platform's support menu; these requests generally receive a response within one business day. Mercury does not maintain a public-facing phone number for general customer support, reinforcing its digital communication strategy. Support operating hours are Monday through Friday, from 6:00 AM to 5:00 PM Pacific Time (PT).

## Technical Specifications

As a financial technology company, Mercury's banking services are provided by partner banks, which include Choice Financial Group and Column N.A. (both Members FDIC). The Mercury IO charge card is specifically issued by Patriot Bank. This partner-bank model has important implications for customer support and issue resolution. While Mercury's support team handles most day-to-day inquiries, issues related to regulatory compliance, legal holds on funds, or complex deposit investigations may require escalation to the partner banks. Mercury is also in the process of transitioning customers away from a former partner, Evolve Bank & Trust, following regulatory actions against that institution, which may require some customers to resubmit verification information. This structure means that while Mercury is the primary customer interface, the partner banks are the ultimate legal entities holding deposits and are involved in resolving certain critical issues.

## How It Works

Mercury offers a tiered support structure that provides dedicated service for qualifying accounts. A dedicated Relationship Manager is available to customers on the Mercury Pro plan, which costs $350 per month and also includes other premium features. This service is also guaranteed for accounts that maintain a balance of $10 million or more, as well as for customers on the custom-priced Enterprise tier. These dedicated managers serve as a single point of contact for complex financial questions and strategic guidance. Customers on the standard Core ($0/month) and Plus ($35/month) tiers rely on the general in-app and email support channels and do not have an assigned relationship manager.

## Use Cases

For transaction-specific problems, such as disputes with merchants like AWS or Facebook Ads, Mercury has a defined process. Users can initiate a dispute directly from the transaction history in their dashboard. For suspected fraud, users are advised to freeze the card immediately. Mercury recommends first attempting to resolve billing issues directly with the merchant. If that fails, a formal dispute can be filed, but the resolution process can take up to 90 days due to legal provisions that allow merchants ample time to respond. It is also important for users to distinguish Mercury (mercury.com) from other similarly named but unaffiliated companies, such as 'Mercury Financial,' a consumer credit card issuer, as negative reviews are sometimes misattributed.

## Limitations and Requirements

## Comparison to Alternatives

## Summary

In conclusion, Mercury's customer support is delivered through a structured, digital-first system. Standard support is available to all users via in-app messaging and email during specified business hours, with an emphasis on fast digital responses. For larger businesses, dedicated Relationship Managers provide a higher-touch service level. The platform's operation within a partner-bank ecosystem is a key structural element that can influence the escalation path for certain complex financial and regulatory issues. The lack of phone support and physical branches is a deliberate part of its model, catering to businesses comfortable with a fully digital banking relationship.

Question 42

What features contribute to customer service quality in Mercury's business banking platform?

Accepted Answer

## Overview

The quality of customer service on Mercury's business banking platform is defined by a dual approach that combines a digital-first model for direct support with a robust suite of self-service tools designed to empower users and reduce their dependency on human assistance. This model is tailored to a tech-savvy startup clientele that often prefers asynchronous communication and platform-native solutions over traditional support channels. The overall service experience is therefore a function of both the responsiveness of its support team and the effectiveness of its built-in platform features.

## Key Features

For direct support, Mercury's primary channels are email (help@mercury.com) and an in-app chat function. A significant characteristic of Mercury's service model is the absence of a publicly listed, direct phone number for general support inquiries. This is a frequent point of feedback in user reviews and represents a key difference from traditional banks. The quality of this digital support receives mixed reviews. On one hand, Mercury reports a high Customer Net Promoter Score (NPS) of 75, well above the industry average, and many users praise the support team for providing timely, thoughtful, and 'human' responses to standard queries, with some noting response times of under two hours. On the other hand, a recurring theme in negative feedback is significant delays and a lack of clear resolution for more complex issues. These challenging cases often involve international wire transfers that have been rejected, unexpected account closures, or users being locked out of their accounts due to two-factor authentication (2FA) problems. In these urgent scenarios, the lack of immediate phone support can become a major point of friction.

## Technical Specifications

The second, and arguably more integral, component of Mercury's service strategy is its extensive self-service tooling. The platform is engineered to anticipate user needs and provide direct control over financial operations, thereby preemptively answering questions and resolving issues that would otherwise require a support ticket. Key self-service features include granular team management, which allows administrators to add users and assign specific, role-based permissions without needing to contact Mercury. The platform's transaction management capabilities, such as a powerful search function, the ability to attach receipts and notes directly to transactions, and automated categorization, streamline bookkeeping and simplify tax preparation. This reduces the need for support related to transaction history or reconciliation.

## How It Works

Furthermore, users have direct control over card and spend management. They can instantly issue an unlimited number of virtual and physical cards, each with unique and customizable spending limits on a daily, weekly, or monthly basis, and even lock cards to specific vendors. For technically advanced teams, Mercury provides a public API that allows for the creation of custom automations and integrations with their existing financial software stack, offering a high degree of flexibility. The platform also has built-in features for automated bill payments, invoicing, and 1099 filing for contractors. These tools are designed to make common financial workflows self-sufficient.

## Use Cases

## Limitations and Requirements

However, there are documented limitations. New accounts may face restrictive daily transfer limits initially. The most cited issue is Mercury's policy of declining or closing accounts for opaque 'internal compliance factors,' often leaving users without a specific reason or recourse.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's customer service quality is a composite of its digital support channels and its comprehensive self-service platform. The model is effective for routine inquiries and for users comfortable with managing their banking operations through a software interface. The extensive self-service tools provide a high degree of control and can significantly reduce the need for direct support. However, the model's limitations become apparent when users face complex, urgent, or sensitive issues, where the absence of direct phone support and occasional slow response times can lead to significant user frustration.

Question 43

What features does Mercury offer for issuing corporate cards to team members with specific budget controls, such as marketing spend?

Accepted Answer

## Overview

Mercury offers an integrated corporate card program that allows businesses to issue both virtual and physical cards to team members with a comprehensive suite of specific budget controls. This functionality is built directly into its core banking platform, enabling administrators to manage spending without using a separate expense management service. The cards, which include the IO Mastercard (a credit card) and standard debit cards, are designed to provide startups with granular control over expenditures, such as departmental budgets for marketing, software, or travel. The system supports the instant creation of virtual cards, which can be assigned to specific employees, vendors, or expense categories. This allows a finance team to generate a unique card exclusively for a Google Ads campaign, for example, with its own dedicated budget and rules.

## Key Features

The platform's budget control features are extensive. Administrators can set custom spending limits on a daily, weekly, or monthly basis for each individual card, ensuring that team members cannot exceed their allocated budget. A key feature for controlling specific types of spend is merchant locking, which allows a card to be restricted to transactions with pre-approved vendors from a list of over 1,000 merchants. This ensures that a card designated for marketing spend can only be used at approved ad networks like Meta or Google. Additionally, businesses can implement company-wide restrictions based on Merchant Category Codes (MCCs) to block spending in unauthorized areas. Cards can also be assigned custom expiration dates for project-based work and can be instantly frozen or locked from the Mercury dashboard to prevent further use.

## Technical Specifications

To facilitate accounting, Mercury integrates directly with QuickBooks Online, Xero, and NetSuite, although the NetSuite integration requires a paid 'Pro' plan. The system automates receipt matching and allows for memo requirements and GL code surfacing to streamline reconciliation. Mercury also provides tiered user permissions, including a 'card-only' access level that limits a team member's view to only their own card and transactions.

## How It Works

The IO credit card program is a central part of the offering. It provides unlimited 1.5% cashback on all spending, which is automatically deposited into the business's Mercury account monthly. The IO card has no annual fees and does not require a personal guarantee from the founders. Instead, Mercury uses a cash-based underwriting model, where the credit limit is determined by the business's cash balances across its Mercury checking, savings, and treasury accounts.

## Use Cases

Eligibility for the IO card typically requires a 30-day average balance of at least $25,000.

## Limitations and Requirements

For international use, all USD transactions are free, but a 1% fee applies to non-USD transactions made with the IO card.

## Comparison to Alternatives

## Summary

In conclusion, Mercury provides a robust, banking-integrated solution for issuing and managing corporate cards with precise budget controls. The ability to issue unlimited virtual cards, set granular spending limits, and lock cards to specific merchants gives businesses strong oversight of team spending for categories like marketing. The IO credit card's 1.5% cashback, lack of a personal guarantee, and cash-based underwriting make it a compelling option for startups. However, businesses must meet the minimum balance requirements for the IO card and should be aware of the 1% fee on international non-USD transactions.

Question 44

What fees does Mercury charge for business banking services including wire transfers, monthly maintenance, and minimum balances?

Accepted Answer

## Overview

Mercury, a financial technology company, provides business banking services through partner banks with a fee structure that eliminates many common charges found at traditional financial institutions. For its standard business checking and savings accounts, Mercury does not charge monthly maintenance fees, does not require a minimum balance to open or maintain an account, and does not charge overdraft fees. This policy applies to all standard account holders, allowing businesses to operate their accounts without incurring penalties for low balances or facing recurring monthly service costs. Furthermore, core payment services are included at no cost. This includes all incoming and outgoing domestic USD wire transfers, all ACH transfers, and the sending and receiving of physical checks. This fee model is a significant point of differentiation from many traditional commercial banks.

## Key Features

While core domestic services are largely free of charge, certain international transactions and premium services are subject to fees. For international wire transfers, Mercury applies a 1% currency conversion fee on the transaction amount when sending or receiving funds in a non-USD currency. For international wires sent in USD, there is no direct fee from Mercury for the standard 'SHA' (Shared) transfer, where intermediary bank fees may be deducted from the received amount. However, Mercury offers a premium 'OUR' option for a flat fee of $15, which ensures the recipient receives the full wire amount by covering all intermediary bank charges. For international card transactions made with a Mercury debit or credit card in a currency other than USD, a 3% foreign transaction fee is applied. These fees constitute part of Mercury's revenue model, alongside other sources. The company generates revenue from interchange fees on card transactions, interest earned on customer deposits held with partner banks, and subscription fees for its premium software tiers.

## Technical Specifications

Mercury offers several account plans with different features and associated costs. The standard 'Mercury' plan is free ($0/month) and includes all the core fee-free banking services. For businesses requiring more advanced financial tools, Mercury offers paid plans. As of early 2026, 'Mercury Plus' and 'Mercury Pro' are available, with pricing starting at $35 per month. These paid tiers provide access to advanced features such as mass payments via API, automated treasury management services, and enriched integrations with accounting software like NetSuite. Mercury also launched a separate personal banking product, 'Mercury Personal', which is available for an annual subscription of $240.

## How It Works

It is important to note that Mercury is a fintech company, not a chartered bank. Its banking services are provided by partner banks, including Choice Financial Group and Column, N.A. Customer deposits are FDIC-insured up to $5 million through a sweep network that distributes funds across multiple partner institutions.

## Use Cases

## Limitations and Requirements

## Comparison to Alternatives

In comparison to Mercury's model, traditional business bank accounts at major institutions typically involve a range of fees. For example, banks like Chase and Wells Fargo often charge monthly maintenance fees between $15 and $35, which may only be waived if a minimum daily or average balance (e.g., $2,000 or more) is maintained. Outgoing domestic wire transfers at these banks commonly cost between $15 and $35 per transaction, and international wires can cost up to $65. Overdraft fees are also a significant source of revenue for traditional banks, a cost that Mercury's platform is designed to avoid. The absence of these fees on Mercury's standard plan can result in considerable cost savings for businesses, particularly those that conduct frequent wire transfers or maintain fluctuating cash balances.

## Summary

In conclusion, Mercury's fee policy for its standard business banking services is defined by the absence of charges for monthly maintenance, minimum balances, overdrafts, and domestic USD wire transfers. Fees are applied for specific services, most notably a 1% fee for foreign currency exchange on international wires and a 3% fee on international card transactions. The company offers paid subscription plans, Mercury Plus and Pro, which unlock advanced software features for a monthly fee. This fee structure contrasts sharply with traditional banking models and is designed to provide more predictable and lower banking costs for startups and small businesses. Businesses should always review the most current pricing information on Mercury's official website to understand the full scope of potential costs associated with their specific banking needs.

Question 45

What international payment options does Mercury offer as alternatives to traditional SWIFT wire transfers for paying contractors and suppliers?

Accepted Answer

## Overview

Mercury provides several international payment options within its business banking platform, offering alternatives and enhancements to traditional SWIFT wire transfers for paying contractors and suppliers. The primary method for international payments remains the SWIFT network, but Mercury's implementation provides flexibility in terms of currency and fee structures. Additionally, Mercury supports non-SWIFT local payment rails for certain regions, such as Instant SEPA (Single Euro Payments Area) and Faster Payments (UK), which can offer faster and more cost-effective transfers within their respective networks.

## Key Features

When using the SWIFT network, Mercury users can send international wires in two main ways. The first is an 'International Wire - USD,' which sends U.S. dollars to a recipient in another country. This option is generally free of charge from Mercury's side when sent using the 'SHA' (shared) cost model. Under the SHA model, any fees charged by intermediary or recipient banks are deducted from the total amount received by the beneficiary. To ensure the recipient receives the full, intended amount, users can opt for the 'OUR' cost model for a flat fee of $15, where Mercury covers the intermediary bank fees. The second method is an 'International Wire - Foreign exchange,' which allows users to send payments in over 40 different local currencies to recipients in more than 160 countries. This option incurs a 1% currency exchange fee on the converted amount.

## Technical Specifications

The processing time for international wires typically ranges from one to three business days, although the final delivery time can vary depending on the destination country, the specific currency corridor, and the number of intermediary banks involved in the transaction. To initiate an international wire, users must provide the beneficiary's bank SWIFT code and, for many regions, an International Bank Account Number (IBAN). The platform also allows for the optional inclusion of correspondent or intermediary bank details if they are known. The minimum transfer amount for a USD international wire is $5.00.

## How It Works

These payment functionalities are integrated into Mercury's platform through features like 'Move Money' and 'Bill Pay.' The Bill Pay feature can automate the payment process by using Optical Character Recognition (OCR) to extract payment details from an uploaded PDF invoice and match them to a saved recipient, streamlining accounts payable workflows for international suppliers.

## Use Cases

## Limitations and Requirements

For security and internal control, all international payments can be subjected to Mercury's multi-user approval workflows. This allows businesses to set up rules requiring one or more administrators to approve payments before they are sent, which is a critical feature for preventing unauthorized transactions and managing team spending. While Mercury's core banking services are free, some advanced financial workflows that leverage these payment options, such as mass payments via the API or enhanced accounting automations with platforms like NetSuite, may require a paid subscription plan, which starts at $35 per month.

## Comparison to Alternatives

## Summary

In summary, while SWIFT remains a central part of Mercury's international payment offerings, the platform provides cost-saving options for USD transfers, extensive currency support for foreign exchange payments, and access to faster local payment rails in key markets, all integrated within a unified banking interface with robust security controls.

Question 46

What is Mercury Treasury and how does it work for startup cash management?

Accepted Answer

## Overview

Mercury Treasury is a cash management product offered by Mercury that enables startups and other businesses to invest idle cash reserves into lower-risk mutual funds to earn a yield. The product is designed for companies with significant cash balances, specifically those maintaining a minimum of $250,000 across all their Mercury accounts. It integrates directly with Mercury's core business banking services, allowing for the automated transfer of funds between a company's operational checking accounts and its Treasury investment account. This functionality helps businesses manage their operational runway by putting excess cash, which is not immediately needed for day-to-day expenses, to work in investment vehicles that aim to generate returns higher than those of standard bank accounts.

## Key Features

The investment services for Mercury Treasury are provided by Mercury Advisory, LLC, an SEC-registered investment advisor and a subsidiary of Mercury Technologies, Inc. The funds and securities themselves are held in the customer's name at Apex Clearing Corp, a FINRA-regulated broker-dealer that acts as the custodian. This custodial arrangement ensures that customer assets are segregated from the brokerage's own assets. Because Mercury Treasury is an investment product, it is not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, accounts are protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 in securities and cash (with a $250,000 limit for cash) in the event of the brokerage firm's failure. It is critical to understand that SIPC does not protect against investment losses resulting from market fluctuations.

## Technical Specifications

Mercury Treasury provides access to specific investment instruments selected for their focus on capital preservation and liquidity. The primary options include the J.P. Morgan U.S. Treasury Plus Money Market Fund (JTCXX), which invests mainly in U.S. Treasury securities and offers same-day liquidity for transfers initiated by 3:00 PM ET. Another option is the Morgan Stanley Ultra-Short Income Portfolio (MULSX), an ultra-short bond fund that invests in a diversified portfolio of high-quality instruments like commercial paper and certificates of deposit, offering liquidity within one to two business days. For clients with balances over $25 million, Mercury also offers personalized portfolio management in collaboration with Morgan Stanley. The yields on these funds are variable and tied to prevailing market interest rates. As of February 2026, net yields ranged from approximately 3.03% to 3.80%, depending on the fund and the total deposit amount.

## How It Works

Mercury charges a tiered management fee for the Treasury service, which ranges from 0.15% to 0.60% of the total monthly positions. The fee percentage decreases as the total deposit amount increases. All advertised yields are presented net of this management fee. There are no separate fees for opening a Treasury account or for transactions within the service.

## Use Cases

## Limitations and Requirements

Businesses using Mercury Treasury must be aware of the inherent risks. Investments in mutual funds are subject to market risk, and the value of the principal is not guaranteed. Past performance is not an indicator of future results. While the selected funds are considered lower-risk, the possibility of losing money exists, distinguishing this product fundamentally from an FDIC-insured savings account.

## Comparison to Alternatives

## Summary

Question 47

What is Mercury Venture Debt and how does it provide non-dilutive capital to extend startup runway?

Accepted Answer

## Overview

Mercury Venture Debt is a financial product structured as a term loan that provides capital to high-growth, venture-backed startups. It is considered a non-dilutive or minimally dilutive form of financing because it allows founders to secure funds without selling a significant portion of their company's equity, thereby preserving their ownership stakes. This type of financing is specifically designed to extend a startup's operational runway, typically by 6 to 12 months, providing a crucial bridge between equity funding rounds. The capital can be used for strategic growth initiatives, such as hiring key personnel, scaling marketing campaigns, or investing in research and development, which can help the company achieve milestones needed to secure a higher valuation in its next equity raise.

## Key Features

Unlike traditional equity financing, where capital is exchanged for ownership, venture debt is a loan that must be repaid with interest. While it is largely non-dilutive, Mercury Venture Debt agreements often include stock warrants. These warrants give the lender, Mercury Lending, LLC, the right to purchase a small percentage of the company's equity, typically ranging from 0.5% to 5%, at a predetermined price in the future. This 'equity kicker' provides an upside potential for the lender, compensating for the higher risk associated with lending to early-stage companies that may not yet be profitable. The loan itself is integrated directly into the Mercury banking platform, allowing companies to apply for, manage, and track their debt obligations within the same dashboard they use for their daily banking operations.

## Technical Specifications

The structure of Mercury Venture Debt term loans is tailored for startups. Loan sizes typically range from 30% to 50% of the company's most recent venture capital equity round. The total loan term can be up to 48 months and often includes an initial interest-only period of up to 18 months. During this interest-only phase, the company is only required to pay the interest on the loan, which lowers the initial cash burn and allows more of the capital to be used for growth. After this period, the company begins to repay the principal, usually through a straight-line amortization schedule. The loans include an origination fee but often do not have prepayment penalties, providing flexibility for companies that may wish to repay the debt early after a successful funding round.

## How It Works

Mercury's underwriting process for venture debt is tech-enabled and leverages the real-time financial data available within a company's Mercury account. This includes analyzing cash balances, transaction history, cash burn rate, and the history of venture capital wire transfers. This approach streamlines the application process, requiring minimal documentation—often just four documents for due diligence. Instead of focusing on historical profitability like traditional banks, Mercury's underwriting prioritizes factors such as the strength of the startup's venture capital investors, the experience of the founding team, and the company's overall growth potential.

## Use Cases

## Limitations and Requirements

However, there are specific eligibility requirements. Companies must be U.S.-incorporated, venture-backed (having raised an equity round within the last 12 months), and are typically at the Series A stage or beyond, though some Seed-stage companies may qualify. A significant limitation is that Mercury currently cannot offer venture debt to businesses operating in California.

While venture debt offers significant benefits, it also carries substantial risks and obligations. The primary risk is the legal requirement to repay the loan with interest, regardless of the company's performance. Interest rates typically range from 8% to 12% per annum and are often variable, tied to a benchmark like the WSJ Prime Rate. Loan agreements may also contain covenants, such as a Material Adverse Change (MAC) clause, which can be triggered if the company's financial condition deteriorates significantly. Mercury also offers an 'Investor Abandonment' clause as an alternative covenant structure. In cases of default, the lender may have the right to seize business assets, including intellectual property, which may be held as collateral.

## Comparison to Alternatives

## Summary

Question 48

What is the Mercury IO card and how does its daily repayment structure work?

Accepted Answer

## Overview

The Mercury IO card is a corporate charge card, not a revolving credit card, designed specifically for startups and digital businesses. It operates without an annual fee and is distinguished by its unique underwriting and repayment models. The card's primary repayment structure for many new customers is a daily settlement model. This mechanism automatically pays the card's full outstanding balance from the company's linked Mercury checking account at the end of every business day. This daily automatic debit ensures that the company does not carry a balance, thereby preventing the accumulation of debt and the incurrence of interest charges. This structure functions similarly to a debit card in terms of daily cash flow but provides the benefits of a charge card, such as rewards and credit-building.

## Key Features

The underwriting process for the Mercury IO card is a key differentiator from traditional corporate cards. Eligibility and credit limits are determined based on the company's cash balances held within its Mercury accounts and any linked external bank accounts. Critically, the Mercury IO card does not require a personal guarantee from the founder or a personal credit check. This means there is no hard pull on the owner's personal credit report and no impact on their FICO score, making it highly accessible to new startups that may not have an established credit history or whose founders wish to keep their personal and business finances separate. While Mercury historically required a minimum balance of $50,000, this requirement has been relaxed. As of late 2025, eligible companies can obtain the card from their first day by starting with the daily repayment model, which mitigates risk for the issuer.

## Technical Specifications

As a company grows and its financial position strengthens, it has the opportunity to graduate from the daily repayment schedule to a 30-day (monthly) repayment term. This transition typically becomes available once the company maintains a total cash balance of at least $15,000 within its Mercury accounts. Moving to a monthly cycle provides greater flexibility in managing cash flow, allowing the business to hold onto its capital for a longer period before settling the card balance. Regardless of the repayment schedule, the card offers a flat, unlimited 1.5% cashback on all eligible business spending. The cashback is automatically credited to the company's account after the balance is paid, providing a direct financial return on expenses.

## How It Works

Another significant feature of the Mercury IO card is its role in building business credit. Mercury reports the company's payment history to major business credit bureaus, including Experian, Equifax, and Dun & Bradstreet. Consistent use and timely repayment, whether daily or monthly, help the startup establish a strong corporate credit profile that is independent of the founder's personal credit history. This is crucial for securing future financing, loans, or favorable terms with suppliers. For international transactions, businesses should be aware that non-USD card payments are subject to a currency exchange fee. The platform also includes robust spend management tools, allowing administrators to issue an unlimited number of virtual and physical cards, set granular spending limits, lock cards to specific merchants, and automate receipt matching for simplified expense reconciliation.

## Use Cases

## Limitations and Requirements

## Comparison to Alternatives

## Summary

In conclusion, the Mercury IO card is a corporate charge card tailored for startups, featuring a default daily repayment structure that prevents debt and interest. Its cash-based underwriting model eliminates the need for a personal guarantee, making it accessible to new businesses. The card offers 1.5% cashback and helps build a company's business credit profile. As a company's cash balance grows to $15,000, it can transition to a more flexible 30-day repayment cycle. This combination of features provides a controlled spending tool that supports a startup's financial discipline and growth.

Question 49

What software discounts and startup perks does Mercury offer through its banking platform, including AWS and Notion credits?

Accepted Answer

## Overview

Mercury offers a comprehensive 'Perks' program through its banking platform, providing account holders with access to a marketplace of over 340 curated software discounts and credits designed to reduce operational costs for startups. This program includes significant offers from major technology providers such as Amazon Web Services (AWS) and Notion. The perks are a core component of Mercury's value proposition, intended to extend the financial runway of early-stage companies. The marketplace is integrated directly into the Mercury dashboard, allowing users to browse and redeem offers seamlessly. The deals span a wide range of categories essential for a growing business, including cloud infrastructure, productivity, HR, accounting, and sales and marketing.

## Key Features

Among the most notable offers are credits for cloud and productivity software. Mercury provides its customers with up to $5,000 in AWS Activate credits, which can be applied toward cloud computing and infrastructure costs. For productivity and collaboration, Mercury offers six months free on the Notion Business Plan, which includes the platform's AI features. Other significant perks include up to 75% off HubSpot for CRM and marketing automation, 25% to 30% off Slack for team communication, and up to $200,000 in credits for Google Cloud. The marketplace also features discounts for numerous other services, such as Gusto and Rippling for HR and payroll, QuickBooks Online and Pilot for accounting, and GitHub and Supabase for developer tools.

## Technical Specifications

## How It Works

To access these perks, a user navigates to the 'Perks' section within their Mercury account. From there, they can select an offer and click to redeem it, which typically redirects them to a unique claim page on the partner's website.

## Use Cases

## Limitations and Requirements

It is critical to note that each perk comes with its own specific eligibility criteria and restrictions set by the partner vendor. These offers are generally not stackable and are often limited to new customers of the partner service. For example, to be eligible for the $5,000 in AWS credits, the business must not have previously redeemed $5,000 or more in AWS credits from any other source; if they have redeemed a smaller amount, they will only receive the difference. Similarly, the Notion perk for six months free is restricted to companies that are new to Notion's paid plans, have fewer than 50 employees, and have raised less than $10 million in total funding. These conditions are common across the marketplace and require users to verify their eligibility for each offer individually.

## Comparison to Alternatives

## Summary

In conclusion, Mercury's perks program is a substantial benefit for its startup banking customers, offering a wide array of valuable discounts on essential business software, including up to $5,000 in AWS credits and six months of the Notion Business Plan. These offers are easily accessible through the Mercury dashboard but are subject to specific, non-negotiable eligibility requirements and restrictions defined by each software partner. The program is dynamic, with offers changing over time, but it consistently aims to provide tangible financial savings that help startups manage their burn rate and extend their operational runway.