Discover does not offer a dedicated business checking account option, but a sole proprietor could use one of its Cashback Debit checking accounts for business transactions. Other options for low-fee business checking accounts include Azlo, BBVA Compass ClearConnect, and Small Business Bank. For details, see below.

Discover Business Checking Account: Availability? Fees?

Discover does not offer a checking account specifically for businesses, but its Cashback Debit checking account can be used for business transactions by a sole proprietor or entrepreneur. Account holders can access their Discover checking accounts from more than 60,000 fee-free ATMs across the U.S. And, through Discover.com and the Discover mobile app for iOS and Android, account holders can view account activity, transfer money, deposit checks, and pay bills.

Similar to Ally’s online checking account, Discover’s checking account has few requirements and low fees. To activate an account, you need to make an initial deposit of any amount within 45 days of opening the account. Online transfers are unlimited and there is no required minimum balance, according to the Discover Banking FAQs. The Discover checking account guide outlines the following fees:

  • Insufficient funds: $30
  • Outgoing wire transfers: $30
  • Stop payment fee: $15
  • There are no fees for:
    • Account closure
    • Reordering checks
    • Debit card replacement
    • Incoming wire transfers
    • Official bank checks
    • Online bill pay

Be aware that if you use the Discover Cashback Debit checking account for your business, you cannot open a second Discover Cashback Debit account for personal use, a customer service representative said. (This policy is also noted online; it applies to all accounts opened after Dec. 1, 2017.) Additionally, Discover has no physical bank branches, so all account management and customer service issues are handled online or by phone.

Other Online Business Checking Accounts to Consider

In addition to Discover and Ally (mentioned above), the following online banks have low-fee checking accounts that can be used by businesses:

Azlo

Azlo is a free online banking platform built specifically for entrepreneurs and small businesses. Checking account features include:

  • ATM access at more than 50,000 locations through the Allpoint network
  • Integration with Square and Stripe
  • No-fee services, including account closing, digital invoices, incoming wire transfers, payments, stop payments, and transfers
  • No minimum opening deposit
  • No minimum balance or monthly fee
  • Online and mobile app account management; Azlo for iOS and Azlo for Android
  • Unlimited transactions

There are some restrictions to an Azlo account. For instance, it doesn’t offer paper checks, doesn’t support outgoing wire transfers, and there can only be one user per account, according to Azlo’s customer service department.

BBVA Compass ClearConnect for Business

BBVA Compass ClearConnect allows sole proprietors to apply for and manage their accounts online. (Other small businesses can apply for a ClearConnect account but will need to do so in person at a BBVA Compass branch.) Checking account features include:

  • ATM access at BBVA Compass and Allpoint ATMs
  • No-fee services, including mobile banking, online bill pay, one personalized Visa debit card, and two in-branch deposits per month
  • No minimum balance or monthly fee
  • Online and app account management
  • Unlimited transactions for most transaction types

Restrictions and fees on ClearConnect accounts include a $5,000 no-fee cash processing limit, a limit of five monthly in-branch withdrawals and/or processed checks, and a $3 per month fee for paper statements. There is also a minimum opening deposit of $100.

Small Business Bank

Small Business Bank offers free business checking accounts with the following features:

  • ATM access through the SHAZAM network
  • No-fee services, including cashier’s checks, mobile deposits, money orders, and online bill payment
  • No minimum balance or monthly fee
  • Online and app account management; SBB for iOS and SBB for Android
  • Unlimited transactions

There are a few restrictions: only the Lenexa, Kan., location accepts cash deposits; there are fees of $25 for stop payments and insufficient funds; and, if you want mailed statements, it’ll cost you $10 per month. There is also a minimum opening deposit of $100.

Note: Small business account options are also available from larger banks like Bank of America, BB&T, Chase, and Comerica. For more online business checking options, see our article on whether American Express offers a business checking account.

In Summary

Sole proprietors and entrepreneurs can use a Discover Cashback Debit checking account for business. Other online business checking account options include Azlo, BBVA Compass ClearConnect, and Small Business Bank.

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