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With increasing demand for digital interactions, banks are expanding their online presence.
The Digital Banking Attitudes Study of 2020 conducted by JPMorgan Chase showed that 4 in 5 customers prefer digital rather than in-person management of their finances.¹
Similarly, in the second quarter of 2021, Chase alone reported a 10% year-over-year increase in the amount of customers using its mobile services.²
Novo is one such digital banking platform that partners with a range of services, such as Wise, to offer its users multiple integrations.
If you’re a small business owner or entrepreneur, then continue reading to see how a Novo business checking account can benefit your operations.
|Table of Contents
Novo is an online banking platform for businesses looking to open a business checking account.
Novo itself is an independent tech company that has partnered with Middlesex Federal Savings to offer banking services, meaning that your finances are FDIC insured.³
The company offers its users a free Novo business checking account via an easy application process.
With minimal Novo bank fees and 15+ integrations to make business processing easier, a Novo business checking account has a lot to offer to small businesses. Let’s take a closer look.
To open a Novo business banking account, you’ll need to:
- be at least 18 years old
- provide your US address
- provide a mobile number utilizing a US carrier
- have a signed copy of your personal identification and your Social Security Number.⁴
Depending on your type of business, as well as the state you’re operating in, you may need to provide other documents.
Novo provides a list of requirements for sole proprietorships, LLCs, Partnerships and Corporations.
Novo pricing is transparent and, for the most part, free of fees. There are no:
- account setup fees
- monthly fees or minimum balance requirements
- fees for ACH payments
The only time in which you’ll be liable to pay Novo bank fees is for uncollected funds returned and insufficient funds, both of which charge a fee of $27 USD.⁵
Similarly, although there is no minimum balance requirement, Novo does require a minimum deposit of $50 USD in order to access all the features of a Novo business checking account.⁶
Novo itself doesn’t offer the option of sending international or domestic wire transfers.
But luckily they’ve integrated Wise Business to allow you to send wire transfers abroad.
When sending an international wire transfer, you’ll incur Wise’s fees which vary depending on the amount being sent and the method of payment.⁷
Sending with Wise will also give you access to the mid-market exchange rate, giving you a fair conversion with no hidden fees.
|See the fee for your international transfers in the price calculator tool below!
Novo offers three types of apps:
- Novo Features,
- and External apps - all of which are free of charge.
Fees are only incurred when using the features offered by integrated partners - such as Wise - in these apps.⁸
At the time of writing, Novo apps don’t allow you to request payments from other parties. That being said, Novo allows you to accept payments via wire transfer, Venmo, ACH, and mobile check deposits.⁹
Additionally, Novo apps are compatible with Android and IOS, and currently support more than 15 integrations with businesses such as Wise, Stripe, Quickbooks and Slack.¹⁰ ¹¹
This integration feature can be particularly useful for small business owners already using these softwares, as they can seamlessly integrate their operations and accounts.
Currently, Novo doesn’t offer a credit card.¹² It does, however, offer virtual cards exclusively to LLCs who opened accounts after November 5th 2021.¹³
Additionally, debit Mastercards are also available to all users free of charge.¹⁴
Novo cards are non-prepaid, fully functioning debit cards for which there is only one card per user.¹⁵
If you want more than one Novo card, for an additional user, for example, you’ll need to register the second user, who themselves will gain full account privileges.¹⁶
A standout feature of the service is Novo invoicing. Novo offers its users the ability to create, send and manage unlimited invoices within your Novo business checking account.¹⁷
|Read more - Top 10 Paid and Free Invoice Apps for Businesses
You can accept invoice payments by ACH transfers as well as through your Stripe, Square or Paypal account.
When accepting payments through Stripe integration, the funds will be deposited directly into your Stripe account.¹⁸
|Did you know? 💡
|You can link your Wise account to Stripe to receive payments. Additionally - with Wise you can get local account details in 10 currencies and add them to your invoice templates to get paid on time and for free.
Novo uses industry standard, bank-level encryption to protect your finances.¹⁹
Novo is partnered with Middlesex Federal Savings - an FDIC insured bank - meaning your finances are insured at the FDIC standard amount of $250,000 per depositor.²⁰
The additional benefit of this partnership is that your finances are held with Middlesex Federal Savings, meaning that you can still access and transfer your funds in the event that Novo experiences operational disruptions or is acquired.²¹
Novo is not currently participating in the Paycheck Protection Program (PPP) that loans to small businesses who have experienced a 25% decrease in quarterly revenue.
You can, however, receive PPP loans to be deposited directly into your Novo business checking account.²²
Customers describe Novo customer service as generally quick to reply and deal with problems.
For users, Novo recommends contacting customer service directly through the Novo app or by email.
They can also be contacted by the Novo bank phone number, which can be found on the back of your Novo card - for security reasons, the number is not listed on their website.
Customer service is available from 9am - 6pm EST.
Due to high demand, Novo customer service is not currently supporting phone calls from non-Novo users. For prospective users, customer service can be reached via email at email@example.com.²³
Novo business banking reviews are generally positive.
Users praise the speed of customer service to respond to questions and challenges, as well as the lack of fees, efficiency and the usefulness of the service and its integrations for small businesses in particular.
Here is a sample of some Trustpilot Novo customer reviews:
“Customer service is the best I've seen in a bank EVER! The response time is incredible - super quick.”
“Zero fees, all online, quick, efficient, and excellent customer service. I highly recommend them to young entrepreneurs and small business owners who want to minimize their bank fees and streamline their services.”
“The customer service when I was doing barely any business was incredible -- all US based, all people who know how to handle every possible challenge that came up. Now, we are a business doing $250K/month through the account and the service is the same... and it's all still 100% free. I've never trusted a financial institution more -- we are customers for life.”²⁴
Some Novo customer reviews have suggested that Novo could improve the speed of transactions and make funds immediately available.
Novo has been quick to respond to feedback such as this, with a current response rate of 96% on Trustpilot.²⁴
|Find the best fit for your business! Check out the Best Online Business Bank Accounts
With increasing globalization and cross-border transactions, businesses need to be well supported in order to compete internationally. This is where Wise Business comes in.
Increase your revenue while expanding internationally. Join more than 200K businesses supported by Wise Business.
Take control of your multi-currency cash flow and manage payments in up to 54 currencies, all from your multi-currency business account.
Gain access to local account details making invoicing a step easier.
- Forbes - Digital banking as the new normal in 2021
- Bankingdive - Chase study on digital banking
- Novo - About
- Novo - What business documents do I need to open an account?
- Novo - Fee schedule (pdf.)
- Novo - Is there a minimum balance to open an account?
- Novo - How does Wise determine their fees?
- Novo - Apps
- Novo - Requesting funds
- Novo - Stripe integration
- Novo - Novo Apps
- Novo - Is there a Novo credit card?
- Novo - Virtual cards
- Novo - Debit card
- Novo - Is the Novo debit card prepaid?
- Novo - Can I have multiple debit cards?
- Novo - Invoicing
- Novo - Accepting payments through Novo invoicing
- Novo - Security
- Novo - Are my deposits insured by the FDIC?
- Novo - How are my funds secure with Novo?
- Novo - PPP (Paycheck Protection Program)
- Novo - How to contact support
- Trustpilot - Novo reviews
All sources checked 2022 March 9
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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