In this blog, we will share some tips on how to find the best business account for e-commerce. We will explore the key features to look for, the different types of accounts available, and some important considerations to remember.
What is a business bank account?
A business bank account is a specialised account used for business-related finances. Opened in a company name, they allow businesses to manage their funds, pay overheads, and perform other financial transactions related to their business operations.
Business bank accounts typically offer features tailored to businesses' needs, such as higher transaction limits, online banking, mobile banking, and the ability to accept and process electronic payments. They may also provide additional services such as business loans, lines of credit, and merchant services.
Do I need a business bank account for ecommerce?
Using a business account to collect payments from online marketplaces is not required. Most all global ecommerce platforms allow people to trade using personal bank accounts. What’s the reason behind this? They simply don’t check.
Despite not being a technical requirement, we always encourage using a business account for any commercial activity – regardless of company turnover. Not only will it help you to simplify your financial management by keeping personal and professional separate, but you’ll also be able to access vital merchant services.
Why do I need a business account for my ecommerce store?
If you’re serious about taking your ecommerce company to the next level, opening an online business account is a first step. Not only will you be able to sell smarter and scale faster, but you’ll also be able to operate more professionally and efficiently.
Here are five reasons why you might need a business account for your ecommerce store:
1. Legal requirements
In many countries, it’s a legal requirement for registered companies to hold a recognised business account. This helps ensure that businesses operate in a financially compliant way.
Having a business account can make your ecommerce store appear more professional and trustworthy to customers. It shows that you are serious about your business and have taken the necessary steps to establish yourself as a legitimate entity.
3. Merchant services
Many payment processors, such as PayPal and Stripe, require businesses to use a separate business account to process payments. This is because they typically have stricter requirements for businesses than they do for individuals.
4. Tax purposes
Keeping your personal and business finances separate can make tracking your expenses and income easier for tax purposes. This can help you to minimise your tax liability.
5. Financial management
Having a separate business account can make it easier to manage your cash flow. This will help you make better economic decisions and grow sustainably.
What to look for in an ecommerce business bank account
With so many options, it’s worth investing the time to research which account will be right for your business. Whichever provider you choose, here are four essential things to look for:
1. Low fees
Fees are often unavoidable when opening a business account. Holders will be charged high monthly fees, and uncompetitive premiums will apply when making cross-border or foreign currency payments.
2. Multi-user access
Multi-user account access is vital for ecommerce businesses, especially those with globally remote teams. Individual access to a shared account helps promote flexible financial management that’s both efficient and secure.
3. Quick and reliable transfers
Businesses should look for account providers prioritising security and speed when making payments. Partnering with a provider that guarantees transactional peace of mind will help inspire short-term confidence and long-term growth.
Using an online business account is a no-brainer for an ecommerce company. It offers convenience, security, and real-time account management, making it easier for business owners to manage their finances and operations wherever they trade.
What to consider when choosing a business account
Business bank accounts often have higher transaction volumes and larger account balances. That’s why company owners have instant access to their finances, especially in the digital age. Real-time payment and transfer notifications can also help business owners identify fraudulent transactions more quickly – a particular concern in ecommerce.
Many business bank accounts limit the volume or value of transactions that can be processed. The main reason is outdated attitudes towards high-value cross-border transfers and automated compliance. Modern ecommerce businesses require flexible payment solutions that better suit today’s digital economic climate.
Some online business accounts may have minimum balance requirements that could block smaller ecommerce businesses from opening an account. The amount required can be unfairly calculated and too high for an SME with fluctuating cash flows.
Being able to access flexible payment solutions is essential for ecommerce businesses. It will enable them to meet their customers' and clients' payment needs. This, in turn, will help increase sales, improve cash flow, and global expansion. Businesses should always consider an account that solutions offer innovative fintech solutions that enhance traditional payment experiences.
Ecommerce businesses are typically more at risk of financial cybercrime and online fraud. That’s why choosing a business account with robust security features is essential. Features such as payment authentication, automated monitoring, secure customer support, and fund safeguarding should come as standard. If they aren’t listed – look for an alternative provider.
Trading through online marketplaces means that ecommerce businesses need flexible currency management solutions. As standard, an online business account should be able to collect, hold, and receive multi-currency payments and offer competitive and sustainable FX rates.
Finding the right online business account for your ecommerce store
Ultimately, growth is the name of the game in business. Entering a secure and meaningful financial partnership will help lay the foundations of success for you, your company, and your clients. If you’re searching for a way to digitise your economic life, embrace alternative banking, or simply gain access to new markets internationally - 3S Money has got you covered.
Our International Business Accounts are optimised to meet the needs of today’s ecommerce environment. 3S Money’s mission goes beyond payment processing – we exist to support boundary-pushing entrepreneurs who dare to take on the world. A fairer financial world works for us all.
Here are five reasons why we believe partnering with 3S Money will help your online business scale new markets cheaper, faster, and more sustainably:
1. Global marketplace access
With access to 30+ local IBAN accounts, you can trade like a local on domestic online marketplaces with no geographical limitations.
2. Faster international payments
We combine innovative Fintech solutions with the service levels of a premium bank to offer payment solutions in 190+ countries and 65+ currencies.
3. Simplify your finances
Manage all your local and international business accounts in one place. You can pay, transfer, and exchange funds on your terms through our easy-to-use client portal.
4. Fee-free collections
Collect payments in local currencies and avoid hidden conversion fees with 5x cheaper exchange rates and same-day payout.
5. Access payment gateways
Connect your 3S Money account to Klarna, Stripe, and Amazon Pay to boost your collection capabilities.
Can I open a business bank account with a virtual address?
Yes, you can use a virtual address to open a business account. Every application will require you to submit proof of a registered business address. To avoid complications, always ensure that the virtual/remote address provided on your documentation matches your business’s legal address.
Is getting approved for a business bank account hard?
This will depend on the type of account and who is applying for it. Local businesses with simple structures in low-risk industries may find it easier than a foreign-owned business with complex ownership.
At 3S Money, we accept shareholders and directors from 190+ countries and take a human approach to compliance. Doing this allows us to work with businesses in high-risk regions that high-street banks might otherwise decline.