Business Bank Account for Amazon Sellers: Pick Your Best Option Right Now

We’ve summarized a list of the best business bank accounts for Amazon sellers so you can select the right options for your needs.

Additionally, we will provide detailed insights into the advantages offered by these banks and guide you through the application procedures. Let’s begin.

Why should an Amazon seller open a business bank account?

Even if you’re a small Amazon seller and aren’t bound to open a bank account, you’ll need one for several reasons. Primarily, a business bank account is critical for getting a business loan.

Loan acquisition

You might think that a loan is not needed for now, but future circumstances could arise that necessitate extra funds to ensure the smooth operation of your business.

By maintaining a distinct bank account for your business, there’s more chance your loan will get approval from the bank. This facilitates better financial management and enhances your credibility as a business entity.

Online payment management

Moreover, when you sell on Amazon, you must be able to accept credit card payments for online purchases.

Many Amazon customers prefer using credit cards instead of cash on delivery. By offering credit card payments, you can reach a larger customer base and make their shopping experience more pleasant.

What must Amazon sellers consider when opening a business bank account?

After gaining some background in business banking, the follow-up question is: What factors do you need to consider for your business bank account?

Particularly, you will need to take notice of the following:

Credit card payment system

No customers want to send a check or wire a transfer when they’re shopping online. Make sure you can set up a credit card payment system with your business bank account.

Monthly account balance

As an Amazon seller, you’ll need to invest in purchasing goods before selling them to your customers. Additionally, you’ll have to make regular deposits to stock up on inventory each month.

With this in mind, it’s advisable to look for accounts with small balance requirements. This will reduce financial burdens when your capital is tied up.

Costs of international selling

Selling on Amazon opens up exciting possibilities to reach customers worldwide. Thus, you need a bank account to protect profits when trading in multi-currencies.

By choosing the right banking solution, you can save a lot of money on currency conversions. It also ensures that you can trade globally without unnecessary expenses.

Support for certain business structures

You should look at extra support that banks can offer for your business structure.

For instance, if you’ve incorporated your Amazon shop as a partnership, a good bank should be able to connect you with attorneys who can offer valuable advice.

Similarly, if you operate your Amazon shop as a C corporation or LLC, the right banking service provider shall assist you in growing your business with limited liability.

Traditional business bank account – Is it the right choice for Amazon sellers?

In this section, we’ll explore various types of traditional bank accounts and the advantages they offer.

Business accounts from traditional banks typically fall into a few categories, with the main options being checking accounts and savings accounts.

Business checking accounts

A checking account lets you handle day-to-day spending for your Amazon shop.

The spending includes writing checks to pay vendors and depositing checks from clients. Furthermore, having a checking account helps you make purchases and cash withdrawals with a debit card.

You can also set up a credit card payment system with your business checking account.

When should you use it?

This type of account is ideal if you want to hold your money in a secure place for the short term. For example, money to pay expenses for your Amazon shop.

You shouldn’t use it for long-term goals (i.e. paying off the mortgage) because it offers a low interest rate (0.01% – 0.04%).

What are the fees and terms?

You’ll need to pay monthly fees to maintain your checking account, ranging from US$15 – US$30 depending on the bank.

Nonetheless, you can avoid this fee by maintaining a specific balance in your account. The amount of balance will depend on the policy of each bank, so choose a bank with a suitable balance requirement that you can maintain.

Business saving accounts

A business savings account offers interest-bearing benefits. This means you can earn an interest yield from the money you deposited.

Unlike checking accounts, savings accounts are primarily used for saving and growing your money.

When should you use it?

You can use a savings account to store money and use it in certain situations (e.g. repairing your broken equipment or covering work accidents). In this way, you won’t have to tap into your personal assets.

The number of transactions you can make with this account is limited, so it is best suited for small to medium Amazon shops.

What are the fees and terms?

Apart from the restriction on the number of transfers, the bank will require small monthly fees and withdrawal fees.

Please be aware that the interest you earn from your bank accounts is considered income, which means it may be subject to taxation.

How about EMIs for Amazon Sellers?

An Electronic Money Institution (EMI) is a financial institution that issues electronic money.

Despite not being regarded as traditional accounts, EMIs remain an appealing option because they provide bank-like services and functions, all at more affordable fees.

Additionally, EMIs make it easy to sign up, without any personal visit or physical documents required. You can open your account online in just a few minutes.

BBCIncorp recommendation – Top 3 EMIs for Amazon Sellers

Now that you know the benefits of EMI accounts, let’s discover some top-quality options for your Amazon shop.

Payoneer business account

Payoneer is a licensed electronic money service. Although you don’t earn interest for your balances on a Payoneer account, it allows you to send and receive payment in over 150 currencies with low fees.

With a Payoneer business account, you get an account number, a sort code, and a debit card. This allows you to experience managing an actual bank account, just like with traditional banks.

When should you use it?

A Payoneer business account is a great choice if you sell on different Amazon marketplaces. It helps you collect global sales and convert them to your currency at a low exchange rate.

If you’re a non-US resident, you can easily register for a Payoneer business account to sell on Amazon US. Keep in mind that there might be limits on the number of transactions you can make with this kind of account.

What are the fees?

Opening a business account with Payoneer is free. Transfers into local accounts in USD are charged a 0-1% fee, depending on the country.

In addition, you will have to pay a fee of US$1.50 to withdraw money in the same currency and up to a 2% exchange rate with different currencies.

Mercury business account

Mercury is an EMI based in the US, focusing on serving the e-commerce industry. You can easily link it with Amazon’s payment processors, allowing you to manage payments from your shop directly.

Depending on your suit, you can choose a physical card or create a virtual one.

When should you use it?

If you’ve registered a company in the US but are struggling to open a bank account, Mercury is your top choice. They support both US residents and non-residents by offering practical advice to simplify your registration process.

What are the fees?

You can register a Mercury business account for free. There are also no monthly fees. Regarding transaction fees, domestic wire transfers will cost you US$5, and US$20 for international transfers.

Wise business account

Wise, formerly known as Transferwise, is a UK-based EMI. Its main service is providing accounts for eCommerce sellers worldwide.

A Wise account allows you to convert earnings with low fees and market exchange rates. Wise is also a member of the Amazon payment service provider program.

When should you use it?

The wise account is compatible with various Amazon marketplaces such as Amazon US, Europe, UK, and Australia.

If you’re planning to trade internationally, a Wise account can give you control over how and when you convert earnings from one currency to another.

What are the fees?

You can use Wise for currency transfers free of charge, but you need to pay US$31 to get a business account.

Sending and converting payments will be subject to currency conversion fees, which are much lower than what a bank would charge.

What documents do you need to open a business bank account?

Once you determine your business bank account type, the next step is to apply for one.

To complete the application process, you will need specific documents based on the banks you choose and the structure of your business.

Traditional bank accounts

In most cases, traditional banks will ask for the following:

• Your business’s legal name, as filed with your state or the IRS
• Employer Identification Number (EIN) if your Amazon shop is a corporation or an LLC
• The address that you used to license your Amazon shop. Or a P.O. box if you operate from your home and/or are a sole trader
• Your contact information (i.e. business’s phone number, email address, website, etc.)
• Driver’s license number
• Other proof of identity (i.e. a passport)

If your business is an LLC or corporation, the bank may also ask for:

• Partnership agreement for a partnership
• Articles of organization for an LLC
• Articles of Incorporation for a corporation
• Your business license

EMIs

The registration process for an EMI account is simple and straightforward. Generally, you’ll only need to fill out an online form with essential information, including:

• Company’s name, industry, and scope;
• Employer Identification Number (EIN);
• Proof of address;
• Information of the account holder;
• Your Amazon seller profiles and sales history.

The verification procedures can vary for each EMI. However, the approval process typically takes around 24 hours, and you can expect to receive your EMI account details shortly after that.

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Final thoughts

If you’re looking to expand your Amazon shop, starting with a traditional bank account can be a solid choice. However, if you’re a startup and don’t require fancy branches or complex offerings, opting for an EMI would be a simpler option.

Especially for Amazon online businesses, choosing the right business bank account is crucial for avoiding excessive fees and maintaining organized expenditures.

In case of more inquiries on this matter, feel free to reach out to us at service@bbcincorp.com for further support. We are ready to help!

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