ChexSystems is a consumer reporting agency that keeps a close eye on your banking activity.
When you go to open a checking account, banks will review your ChexSystems reports to determine risk level and whether they open a new account for you.
ChexSystems is an invaluable tool for financial institutions. For aspiring business owners, not as much.
If you have any negative marks on your report, you could be turned away from a business checking account.
Fortunately, there are solutions.
Below, we review five business bank accounts with no ChexSystems verification.
5 Business Bank Accounts That Do Not Use ChexSystems
1. LendingClub Tailored Business Checking
LendingClub has a monthly fee that is waived if the average monthly balance is at least $500.
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- Unlimited fee-free transactions
- Get ATM fee rebates regardless of the ATM you use and unlimited refunds for fees charged by other banks for debit card and other transactions
- Online banking is available nationwide
- You can earn 1% cash back with unlimited debit card and other transactions
- Earn 1.50% APY on balances up to $100,000
- Earn 0.10% APY on the part of the balance that is $100,000 or more
- Sync your LendingClub mobile deposit accounts to Mint®, QuickBooks®, or Quicken®.
- Also, create and send digital invoices and get paid online with Autobooks
2. Capital One Business Checking
Capital One is a national bank that offers a savings account and a business checking account online. You can get a business bank account no ChexSystems through them.
They offer online banking services and are a member FDIC institution.
- With Basic Checking, deposit up to $5,000 in cash each month or no fee; $1 for every $1,000 deposited after that
- $15 monthly fee, waived if prior 30- or 90-day balance averages a $2,000 minimum balance or more
- $15 per incoming domestic wire and $25 per outgoing wire
- With Unlimited Checking, there is no fee for a cash deposit
- Pay a $35 monthly service fee, waived if prior 30- or 90-day balance averages a $25,000 minimum balance or more
- Incoming wires are free and first five outgoing wires are free each month
- Their banking services are ideal for businesses with less than $40,000 in cash deposits—this is a non ChexSystems bank!
- Their merchant services include the ability to accept debit card and other payments with smart terminals, hosted web pages and mobile readers
- Build or enhance your online store with their eCommerce platform
- Get paid by your customers (with a debit card or in any other way) and have the money in your business checking account the next day
- CapitalOne offers a suite of data security tools
- Accept major credit cards and gift cards, including EMV, contactless, PayPal, ApplePay, Google Pay and more
- Get actionable data insights to help you grow your business
3. Bluevine
Bluevine offers a $0 minimum opening deposit.
- No monthly fee or NSF fees
- No minimum balance or deposit requirements
- Earn 2.0% interest on your balance up to and including $250,000 if your small business can meet a monthly activity goal
- No in-network ATM fees (but you will pay $2.50 per transaction for using an ATM that is out of network for a debit card or any other type of transaction)
- Make all the deposits or payments you need with no limit on your number of transactions
You can use mobile banking and pay vendors via ACH or wire, or Bluevine will print and mail a check for you. Plus, you can sync your online banking with QuickBooks® Online.
Organize your finances by adding up to five sub-accounts with their own designated account numbers. In addition, you can securely share access with your team or accountant by giving each a dedicated login.
There is no ACH or overdraft fee. Get two free checkbooks per year. Pay no fees for incoming wires or their bill pay service. This goes far beyond basic business checking.
4. Mercury
Mercury is a fintech and not an actual bank.
Therefore, they offer mobile banking services via Choice Financial Group and Evolve Bank & Trust.
- You can open an FDIC-insured checking or savings account
- Easily issue an employee debit card or credit card with custom limits
- Pay vendors and employees through ACH (yes, you can get direct deposit), wires, checks, and foreign exchange
- They offer mutual funds and similar financial services via Mercury Treasury. This is more robust for renters than a savings account through a provider like Stride Bank or Navy Federal Credit Union
- You can even apply for venture debt through them
- Automate recurring payments and accounts payable
- Save time with seamless integrations, from QuickBooks to Stripe
- Maintain control with granular employee permissions
Mercury is much more specifically banking for startups. A startup can be venture-backed or bootstrapped.
You can get a MasterCard through them with no credit check or annual fee. Enjoy 1.5% cash back, a monthly autopayment, and an integration with QuickBooks.
5. Novo Bank
With Novo, you can send ACHs and paper checks without any fees.
- Use mobile banking and send international transfers via Wise
- Get unlimited free transactions within the US for a debit card purchase or anything else
- Activate a virtual card through the app and spend funds online or through Apple Pay, Google Pay or Samsung Pay before you receive a physical debit card
- Track your sales and balances across many payment platforms
- Send money overseas within 30 seconds
- Automatically sync transactions to your accounting software
- Their remote check deposit allows you to deposit a check directly from your phone
- Get unlimited check deposits, always free of charge
- Deposit a check in seconds by taking a photo
- You can easily transfer money in or out of Novo from any device
- There is no minimum deposit
- Withdraw money anywhere and get refunded on any ATM fees
- Create and send personalized and professional invoices in seconds
- Send an unlimited number of invoices free of charge
- Connect to their Stripe, Square, and PayPal integrations
- Like all the best banks, they offer direct deposit
1. Can I Open a Business Bank Account if I Am on ChexSystems?
If you’re on ChexSystems’s radar, then it will be harder but not impossible to get a company bank account.
You will have to find a bank that doesn’t use ChexSystems, like Axos Bank, the American Express business checking account (mostly known for business credit cards), and the other banks listed above.
For example, going to Truist for dynamic business checking or Truist simple business checking will likely result in you being turned away because they use ChexSystems.
Some other banks you might wish to avoid include PNC Bank,
But there is a better option. This is to resolve any outstanding issues on your ChexSystems report to limit the impact ChexSystems can have on your business.
Because even if you can open a business checking account, problems with ChexSystems can potentially hamper your business in other areas.
Consider Wells Fargo or TD Ameritrade, as they do not use ChexSystems as a means of screening applicants.
However, you may find that you are subject to a soft credit pull from some of these providers anyway should you decide to, let’s say, try to open a TD bank account.
2. Can You Open a Business Account Without a Credit Check?
A business checking account will not require a check of your credit report. However, there is a possible exception for accounts that offer an overdraft line of credit.
And, your chances of being approved for a business checking account will improve if you have a well-managed personal checking account. But if you have issues with ChexSystems, a standard account can be out of reach.
Here’s where a second chance account comes in handy. A second chance checking account will often come without a business credit check or without relying on one so much. But it probably won’t offer free checking like you’d receive with other checking accounts for business owners.
Second chance checking accounts can be helpful banking tools. They can give you the opportunity to build a positive banking history so that you can eventually open a standard business checking account.
First Convenience Bank, Varo Bank, and Woodforest National Bank offer a second chance bank account.
Also, some institutions don’t use ChexSystems at all, such as digital banking companies like Chime, so it’s less of an issue. Chime is also recommended as they offer up to $100 in overdraft protection. GO2Bank also offers overdraft protection.
Providers like Navy Federal Credit Union don’t use ChexSystems, but you will have to qualify for this credit union to have an account with them. United Bank, Cadence Bank, and Axos Bank do not use ChexSystems, either.
Another option is securing your account, like with Chase Secure Banking.
3. How Do I Clear my ChexSystems Report?
Visit the ChexSystems website and fill out the consumer disclosure form. Submit it online or print it out and mail it to:
Chex Systems, Inc.
Attn: Consumer Relations
PO Box 583399
Minneapolis, MN 55458
You can dispute any errors on the ChexSystems website.
For issues that aren’t errors, your best bet is to pay off your debts, and always ask your creditors to update their information once you do. This will help increase a bad credit score.
And for older issues, if you can wait, many of them will drop off your ChexSystems report after five years.
If you cannot wait, and you need to open an account, consider a second chance business checking account (sometimes called fresh start checking).
Second chance banking is available if you have issues with ChexSystems, but keep in mind that there are fewer features than with other accounts.
If you have a bad ChexSystems report, it can be hard to open separate business checking accounts. Having a separate business bank account is vital to Fundability.
If you have issues on your ChexSystems report, these options can give you the business advantage you need.
- LendingClub Tailored Business Checking
- Capital One Business Checking
- Bluevine
- Mercury
- Novo Bank
This blog post may contain affiliate links, meaning when you click the links for some products and make a purchase, Credit Suite receives a commission at no additional cost to you.
Why You Need Separation for Business Bank Accounts
There are a number of reasons for this. The most obvious is the IRS. They want to see business funds and personal funds separated. It’s much easier to provide this information if your accounts are already separate.
Separation is equally important for improved treasury management (assessing cash flow, risk, and beyond as it relates to your financial health) and to ensure you’re not affecting your personal credit score or finances.
Also, your business banking history is important when it comes to Fundability. Not only that, but many lenders require a separate business bank account.
If you want an SBA loan, a business credit card, or other forms of lending a business needs, you’ll have to have a simple business checking account to tap into funding and improve your cash flow.
They actually make it a requirement for funding approval.
This may be the most surprising reason, however. The opening date of your business bank account can affect time in business. Some lenders consider the date the business checking account opens to be the date the business began.
For example, say you opened your business a year ago. Then, 6 months ago you opened a business bank account. Some lenders may consider your business to have begun 6 months ago, not a year ago.
The longer your business banking history, the better your borrowing potential is. More than that, many funding options require at least a year in business. As you can see, you shouldn’t wait to open the best bank account for your business if you want to boost cash flow, grow your business, and reach your goals.
And the best business checking account is, of course, one you can qualify for.
Of course, don’t forget to look at other options as an account holder.
Whether you want a money market account, business interest checking account, or basic accounts with account features like low transaction fees, select and initiate business checking with a bank that best suits you.
What’s the Catch?
Here’s the thing. Opening a business bank account may not be so easy if your personal banking history isn’t great. Most banks use ChexSystems when determining whether they are going to let someone open an account.
As a result, your ChexSystems report can affect your ability to open business bank accounts. If you have an issue on your report, you may have a hard time opening a business account at a financial institution that uses ChexSystems.
Issues may include NSFs, closed accounts, and overdrafts. Many people have no idea ChexSystems even exists until they cannot get a loan or open an account because of it.
Don’t Let ChexSystems Destroy Your Fundability™
The best thing is to avoid overdrafts, NSFs, and closing accounts. But, what if it’s too late? What if you already have a bad ChexSystems report? There are some banks out there that offer business bank accounts without taking ChexSystems into account.
Note: many of these business checking accounts do not specify if they offer overdraft protection, so be sure to ask about that and any bill pay charges.
Here are 5 business bank accounts with no ChexSystems verification required.
How To Recover From a Negative ChexSystems Report
Recovering from a negative ChexSystems report means meeting the problem head-on.
First, you will need to actually get your credit report so you know exactly what you are dealing with. Fortunately, you can order yours online from ChexSystems here.
Once you have received your credit report, look it over carefully and take note of the details. In particular, if you have a common name or one that is often misspelled or confused with another’s, look for anything incorrectly attributed to you.
If that is not the case with you, still look for errors, although they will likely be harder to spot.
The Fair Credit Reporting Act allows you to dispute any discrepancies or other errors in your credit report. You will need to provide documentation supporting your claim. Don’t send the originals—only send copies.
For example, if you are a victim of identity theft, it will be in your best interests to be able to produce the police report covering the incident.
For issues that are legitimately on your report, your best bet is to pay your debts (from a debit card or elsewhere) as soon and as completely as possible. This will help to improve bad credit.
Once you have cleared a debt from a debit card or elsewhere, contact the creditor and ask for written confirmation that the debt has been settled.
Now, you can contact ChexSystems and ask that the negative item be removed from your report—and you will have written proof to bolster your claim.
Keep working to pay down your debts even if you have to use a payment plan to do so. This won’t just help you with your ChexSystems report. It will also help you to improve bad credit.
Information You May Have to Provide to Open Business Bank Accounts
Each lender will have their own process for approving you to open a business bank account. However, here is some general information you need to be able to provide just in case.
Business Information
Depending on how your small business is set up, you’ll need to be prepared to provide a copy of incorporation papers and EIN. If you are not incorporated or do not have an EIN, you may still be able to open an account.
However, you need to incorporate and get an EIN for Fundability purposes.
Personal Information
They may also ask for Social Security numbers for account holders, a state issued ID, a U.S. address, and a U.S. phone number. If you are incorporated, they will typically use these for identification purposes only in an effort to prevent fraud.
Business Bank Accounts are Non-Negotiable
For your small business to be Fundable, you need a separate business bank account. It is necessary to get funding from many different vendors and lenders. Beyond that, it is also necessary to get a merchant account.
A business owner must have a merchant account to accept credit card payments. Studies show people spend more when they can use a credit card, so it’s pretty important to have this option. Even if it isn’t something you need now, you likely will eventually.
If you have had issues with your personal bank account, these banks can help. Open your separate business checking account and start building positive business banking history. The future of your business depends on it.
FAQs
1. Can I Open a Business Bank Account if I am on ChexSystems?
If you’re on ChexSystems’s radar, then it will be harder but not impossible to get a company bank account. You will have to find a bank that doesn’t use ChexSystems.
But there is a better option. This is to resolve any outstanding issues on your ChexSystems report to limit the impact ChexSystems can have on your business.
Because even if you can open a business checking account, problems with ChexSystems can potentially hamper your business in other areas.
Consider Wells Fargo or TD Ameritrade, as they do not use ChexSystems as a means of screening applicants. However, you may find that you are subject to a soft credit pull from some of these providers anyway.
2. Can you Open a Business Account Without a Credit Check?
Many business checking accounts will not require a check of your credit report. However, there is a possible exception for accounts that offer an overdraft line of credit.
And, your chances of being approved for a business checking account will improve if you have a well-managed personal checking account. But if you have issues with ChexSystems, a standard account can be out of reach.
Here’s where a second chance account comes in handy. A second chance checking account will often come without a business credit check or without relying on one so much. But it probably won’t offer free checking.
Second chance checking accounts can be helpful banking tools. They can give you the opportunity to build a positive banking history so that you can eventually open a standard business checking account.
First Convenience Bank, Varo Bank, and Woodforest National Bank offer a second chance bank account.
Also, some institutions don’t use ChexSystems at all, like Chime, so it’s less of an issue. Chime is also recommended as they offer up to $100 in overdraft protection. GO2Bank also offers overdraft protection.
Providers like Navy Federal Credit Union don’t use ChexSystems, but you will have to qualify for this credit union to have an account with them. United Bank, Cadence Bank, and Axos Bank do not use ChexSystems, either.
Another option is securing your account, like with Chase Secure Banking.
3. How do I Clear my ChexSystems Report?
Visit the ChexSystems website and fill out the consumer disclosure form. Submit it online or print it out and mail it to:
Chex Systems, Inc.
Attn: Consumer Relations
PO Box 583399
Minneapolis, MN 55458
You can dispute any errors on the ChexSystems website.
For issues that aren’t errors, your best bet is to pay off your debts, and always ask your creditors to update their information once you do. This will help increase a bad credit score.
And for older issues, if you can wait, many of them will drop off your ChexSystems report after five years.
If you cannot wait, and you need to open an account, consider a second chance business checking account (sometimes called fresh start checking).
Second chance banking is available if you have issues with ChexSystems, but keep in mind that there are fewer features than with other accounts.
