Relay vs. Wise Business: Complete Overview

When it comes to managing transactions, there are a wide variety of options for businesses to choose from. Many emerging digital finance services offer options for domestic and international transactions alongside other banking services.

Relay Business and Wise Business are two digital platforms that offer distinct features tailored to business needs. In this article, we look at Relay vs Wise Business to help you understand the best option for your needs.

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Send fast and secure cross-currency payments at the mid-market exchange rate
No minimum balance requirement and no monthly fees
Integrates with QuickBooks, Xero, Sage, and more

Relay vs. Wise Business - Comparison Overview

When evaluating Relay vs. Wise Business, it’s essential to consider each platform, including its features and services.

Relay Business Account Requirements

To open a Relay Business account, businesses need to meet specific criteria that ensure compliance and suitability for Relay's services. The requirements for a Relay business account include:

1. Business documentation: Relay requires official business documents to verify your business's legal existence. These include your business registration, EIN (Employer Identification Number), and articles of incorporation for corporations or articles of organization for LLCsⁱ.
2. Personal identification: The primary account holders and anyone with significant control over the business finances must provide personal identification, such as a government-issued ID. Non-US residents may be required to provide a photo of their passport.
3. Business details: Information about your business operations, including the nature of your business, the physical address (no P.O. boxes), and the anticipated account activity level.

Relay Business Account Fees

Relay offers a straightforward and easy-to-navigate fee structure compared to traditional banking options. Basic Relay Business accounts come with fee-free banking, meaning there are no monthly maintenance fees for accounts regardless of balance. No minimums are needed to maintain the bank account, which can be especially appealing for smaller or mid-sized businesses with lower transaction volume².

Relay does not charge for standard transactions within the U.S., including ACH transfers, electronic bill payments, and check deposits. There are also no ATM fees, as Relay offers access to a wide network of fee-free ATMs across the country. However, there may be fees incurred for using an ATM outside of the Allpoints ATM network, so it’s best to check with Relay to confirm before using an out-of-network ATM.

Relay Plans

Relay’s basic plan is entirely free, at $0/month, which gives it an edge if affordability is a priority. However, if your business needs a few extra features like faster, same-day ACH and more advanced billing features, then the Relay Pro plan will set you back $30 per business/month. You can have up to 20 individual checking accounts without any monthly fees on either plan. ²

Wise vs. Relay - International Payments Comparison

Wise offers international payments via various methods, including direct bank transfers(ACH and wire transfers), debit card payments, and credit card payments. It also offers a multi-currency account, allowing businesses to send and receive payments in a variety of currencies with ease. Wise also offers the Wise Multi-Currency Card for businesses for easy domestic and international payments.

Relay Fees:

Relay primarily focuses on US businesses making domestic payments. Payment methods include wire transfers and bank transfers. When it comes to cross-currency transfers, Relay charges a 1% fee. ³ Relay does provide support for international wire transfers, and this comes with a flat fee of $10.⁴

Wise Fee Breakdown:

Relay Business Account Features

Relay offers a suite of features designed to streamline financial operations for businesses, emphasizing easy, efficient banking services that provide the essentials. Some of the key features for Relay Business accounts include:

1. Relay supports up to 20 individual checking accounts under one business name, providing a high level of flexibility in managing different budget categories or projects separately. This feature empowers businesses to streamline their financial planning without the need to have accounts at multiple banks.
2. No minimum balance requirements: Relay does not require a minimum balance to maintain your accounts, alleviating the pressure on businesses to keep a specific amount in their bank at all times or incur fees if balances go lower depending on cash flow.
3. Integrated accounting software: Relay provides seamless integration with popular accounting software like QuickBooks Online and Xero, allowing for real-time transaction updates and oversight into business finances².

Can you open a Relay Business account remotely?

You can open a Relay Business account remotely as it is a fully digital bank. Business owners can set up an account remotely by providing specific details; there is no requirement to come to a physical branch in order to open a new account.. Relay Business accounts can be set up remotely by completing an application and submitting business documents for verification.

Can you open a Relay Business account as a non-US resident?

Opening a Relay Business account is not possible for non-US residents. Relay requires documentation including a U.S. Social Security Number (SSN), and a physical address in the United States. Non-US residents may want to look into other alternatives for business banking.

Wise Business Account Requirements

Wise Business offers a blend of banking and money transfer services and greatly simplifies international transactions. To set up a Wise Business account, here’s what you need to know:

1. Business documentation: Wise requires documentation that proves the legitimacy of your business. This may include your company's registration documents, proof of business address, and, in some cases, evidence of business activities such as invoices or contracts.³
2. Business verification: Wise also requires additional verification for business owners, including personal identification of all significant owners and directors of the company. This typically includes a passport or national ID card.
3. Linked bank account: To facilitate transfers, you’ll need to link an existing bank account in the name of your business. This account funds your transactions through Wise.

Can you open a Wise Business account remotely or as a non-US resident?

Non-US residents can open a Wise Business account. Wise allows businesses from many countries around the world to create accounts, making it a versatile option for businesses operating domestically and internationally.

The process involves providing personal and business information that meets the regulatory requirements of the country where your business is registered. This includes details like your business type, address, and the nature of your business transactions.

Wise supports businesses across different operational areas, offering features like holding multiple currencies in a single account, making international payments at mid-market exchange rates, and monitoring cash flow.

Wise Business Account Fees

Wise Business is celebrated for its transparency and cost-effectiveness, particularly in international transactions. Here are the main fees associated with a Wise Business account:

Wise Business Account Features

Wise Business accounts are designed to streamline financial operations for businesses engaged in international transactions. Here are some of the key features of the Wise Business account:

1. Make International Payments: Convert money in seconds with the real exchange rate. 50% of payments to outside Wise arrive within an hour.

2. Get Paid: Receive same and cross-currency payments with local account details in 8+ currencies. Your business can get paid as if it's using a local account.

3. Access to BatchTransfer: Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

4. Track Expenses/ Accounting Integrations: Keep track of your teams global expenses through team alerts and special accesses. Easily reconcile transactions with QuickBooks and Xero, as well as Odoo, NetSuite, Sage, Zoho Books, Wave, and more.

Conclusion

When comparing Relay Business vs. Wise for business checking solutions, it's clear that each platform offers unique benefits tailored to different business needs. Relay offers a robust suite of features designed to streamline domestic financial operations. Wise Business facilitates international transactions with its transparent fee structure and multi-currency capabilities, making it ideal for businesses engaged in global commerce.

Ultimately, the choice between Relay and Wise will depend on your business’s specific financial activities, the scale of international operations, and the need for specialized banking services.