Mercury

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

## 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.