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Prospa Business Account in Australia. What are the fees and how does it work?
If you run a small to medium-sized business in Australia you’ll know that being your own boss can be an incredibly rewarding albeit challenging experience at times. Keeping your business finances well-managed, accessible and as unaffected by fees as possible can be one such challenge.
In this guide, we’ll delve into a business account offered by Prospa, reviewing what they offer, their fees, who can apply and more.
For context, we’ll also take a look at how they compare to the Business Account offered by Wise so you can make the most informed decision for your business.
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What is Prospa?
Prospa is a financial services provider founded over ten years ago in Australia by Greg Moshal and Beau Bertoli. Both of whom continue to hold key leadership positions as CEO and CFO respectively.¹
Intending to disrupt the market and with a focus on delivering speed and flexibility to business owners, Prospa markets itself as a pioneer of simple, stress-free and seamless financial management.
Prospa offers several services aimed at helping Aussie small businesses get started and manage their money more easily, including¹:
- Small business loans for startup or expansion
- Business lines of credit and
- Everyday business accounts
What is the Prospa business account and how does it work in Australia?
The Prospa Business Account is an everyday transaction account that enables businesses to send and receive funds in Australia, make BPAY payments and schedule payments.²
A linked Propsa Visa Business Debit Card also allows for easy in-person or online transactions and withdrawals both in Australia or overseas wherever Visa is accepted.
Main features of the Prospa Business Account
Prospa offers fewer features when compared to some other leading financial services providers. The following are the main features offered by the Prospa Business Account.²
- The account can send and receive funds domestically via transfer or BPAY
- Comes with a complimentary Prospa Business Visa Debit Card
- Enables purchasing both domestically and overseas through the linked Debit card
- Accessible via a dedicated app or online
- Allows you to schedule payments in advance
- Supports Apple Pay and Google Pay
What are the fees for this business account?
Helpfully for small business owners, the Prospa Business Account comes with comparatively minimal fees and charges to pay.
There are no account opening fees, no monthly fees, no minimum balance requirements and no ATM fees with major banks in Australia or overseas.³
They do advise being aware that some ATMs may levy fees for use and that this is outside their control.
A more detailed fee outline is provided below for your consideration.
Let’s compare their fees with the Wise Business Account
To give you a better idea of how Prospa measures up against other providers, we’ve prepared the following comparison looking at the services and fees that apply to both the Prospa Business Account and the Wise Business Account.
| Service/fees* | Prospa Business³ | Wise Business |
|---|---|---|
| Account opening | Free | AUD$22 |
| Account keeping | AUD$0 | AUD$0 |
| ATM Withdrawals | AUD$0 at major banks There are no Hay fees for using ATMs. However, you may be charged fees by other financial institutions or ATM providers when using their ATMs. | Free for up to 2 withdrawals or AUD$350 per month, per account AUD$1.50 applies per withdrawal thereafter with a variable fee of 1.75% per sum withdrawn over the AUD$350 allowance. (ATM service provider may levy fee) |
| Domestic card payments | AUD$0 | AUD$0 |
| Employee debit cards | Not permitted, one card per account only³ | AUD$6 per card |
| Foreign currency exchange rate for withdrawals or payments | AUD$0 and no margin applied by Prospa. Visa exchange rate at time of processing applies. For example, at time of writing GBP£100 is equal to AUD$194.08, this includes Visa’s margin of 0.41% over the European Central Bank Rate. | Fee dependent on withdrawal allowance status and currency type, mid-market exchange rate applies Using the Wise conversion calculator today, GBP£100 is equal to AUD$192.65 inclusive of Wise’s 0.41% fee. |
* As seen on 13 February 2024
Please note there is no clarification on Prospa’s website regarding the fees for non-card payments and transactions and how these are determined or applied.
We recommend getting in touch with Prospa for further information before deciding if this product is suited to your business.
International transfers with Prospa business account
At this time, Prospa does not appear to facilitate international transfers with no information regarding this on their website or in their terms and conditions.
While you can spend your funds overseas in person or through an online transaction, direct cash transfers to a third party are not listed as a feature.²
How to open a Prospa account
Making an application to open a Prospa Business Account takes between 2 and 5 minutes to complete.⁴
You’ll need to hand:
- A valid Australian Business Number (ABN)
- A current driver’s licence
- The details of any other business directors (where applicable)
Who can open a Prospa Business Account?
Before making an application, you should also ensure you meet Prospa’s qualifying criteria.
- You must be a business owner and be over 18 years of age
- You must be an Australian Citizen or permanent resident
Steps to apply
- To start your application, simply navigate to the Business Account Page and select the ‘Get Started’ icon.
- From here you’ll be directed to collect the details listed above and ensure you qualify.
- Then it’s simply a matter of following the prompts provided in the online application form.
Prospa advises that approval is virtually instantaneous with account access possible in a matter of minutes.¹
Is Prospa safe?
Prospa is registered with the Australian Securities and Investment Commission (ASIC) and holds an Australian Financial Services License (AFS).⁵
This means they are considered a safe provider of financial services within Australia and that customer funds are protected as per ASIC regulations.
Their security measures include⁶:
- Monitoring for and detecting fraudulent transactions
- Two-factor authentication for identifying new payees and when logging into an account
- Advanced data encryption technology
- Instantly accessible card security controls via the app or online such as the ability to freeze and unfreeze a card, report it lost or stolen, turn off contactless payments or change a PIN.
Things to keep in mind
A Prospa Business Account may not necessarily be the best fit for your business needs. We recommend being aware of the following before deciding.
- At the time of writing Prospa does not allow for more than one debit card per business³ which may make it challenging to give employees access to funds
- International money transfers are not possible with this account at this time
- No integrations with accounting software are available currently to help with forecasting, reconciliations, reporting or similar
- Limited customer support is available with customer care staff only available Monday through Friday and no overseas number is listed for business travellers
Prospa contact details
To speak with Prospa about their Business Account or any of their other products and services you can contact them at:
- 1300 882 867 between 8.30 am and 7 pm AEST Monday to Friday
No overseas contact details are provided, however, you are able to email for assistance and this will be replied to during the above listed hours.
FAQs
Who owns Prospa?
Prospa is owned and operated by its Australian co-founders Greg Moshal and Beau Bertoli.¹
Is Prospa backed by a bank?
Prospa operates independently of any banks but is in partnership with fellow financial services provider Hay Limited.
The Prospa Business Bank Account and associated Prospa Visa Debit Card are both issued by Hay Limited in conjunction with Prospa.³
Does Prospa also offer personal banking solutions?
As per Prospa’s website, they are exclusively focused on business banking and specialise in working with small Australian businesses at this time.¹
Can I acquire additional Prospa Business Account Visa debit cards for my employees?
No, Prospa allows one debit card per account and advises against giving this to anyone else to use.³
As this is a cash account rather than a credit account, limiting card numbers may help to avoid accidental overdrawing of the available funds.
Does Prospa offer a Business Credit Card account option for small businesses?
Currently, Prospa does not offer any services related to business credit cards. They do, however, offer services related to setting up a line of credit.¹
Similar to a credit card, a line of credit is a flexible loan for a defined amount of money that can help aid better cash flow management. Just as with a credit card, interest rates apply as do strict payment terms and conditions.
Can I pay an invoice issued overseas in a foreign currency using this account?
Should the invoice provide access to an online payment terminal, payment should be possible via your provided Prospa Visa Debit Card.¹
However, where a cash transfer is required to an international account, you will be unable to make payment using your Prospa Business Account.
This is due to the fact that Prospa does not facilitate international transfers at this time.
Wise Business Account and Debit Card
Streamlined and hassle-free, the Wise Business Account with linked debit card delivers an all-in-one solution for businesses.
At home or abroad, you can shop online or in-store via the Mastercard network and make easy ATM withdrawals using the Wise business debit card. With no monthly fees, hefty rates or hidden charges, Wise makes it easier to spend, send and receive funds.
Manage your money via your local Australian account while also benefiting from access to accounts in over 9 major currencies.
Access additional cards for your team as needed and pay a single fixed card-creation fee per card with no monthly fees applied.
Able to integrate with most major APIs, the Wise Business Account also facilitates better cash flow management and consistent, reliable reporting across all additional cards.
Find out more about how the Wise Business Account can save you time and money.
Register your Wise business
Account in minutes
| Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information. |
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Sources:
- Prospa – About
- Prospa – Business Account
- Prospa – Fees, T&Cs
- Prospa – Opening An Account
- Prospa – Registration & Licensing
- Prospa – Security
Sources checked on: 14 February 2024
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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