Mercury targets funded startups and teams with treasury, multiple accounts, and developer tooling; Novo targets freelancers and small businesses wanting simple no-fee checking with integrations. Pick Mercury as you scale and hold larger balances, Novo for lean solo operations.
Mercury (FDIC via sponsor banks)
Default pick for funded startups — $0 fee, unlimited digital, clean integrations.
Pros
Novo (FDIC via Middlesex Federal Savings, as of recent disclosure)
Free, simple business checking for solo entrepreneurs and freelancers.
Pros
Apply at Novo (FDIC via Middlesex Federal Savings, as of recent disclosure) →
Pick Mercury if: Funded startups, e-commerce operators, and fully-online professional services businesses that don't take in physical cash.
Pick Novo if: Solo entrepreneurs, freelancers, single-member LLCs, and side-business operators who want a free simple business account they can open from a phone.
Apply at Mercury (FDIC via sponsor banks) →Apply at Novo (FDIC via Middlesex Federal Savings, as of recent disclosure) →
Mercury accepts U.S.-based LLCs, C-corps, S-corps, sole proprietors, and nonprofits. It is particularly built for VC-backed startups, SaaS companies, and growth-stage teams that need treasury products, venture debt access, or developer API integrations. Novo accepts similar entity types and is especially popular with freelancers, sole proprietors, and small service businesses that want simple checking with integration to e-commerce or invoicing tools. Both are FDIC insured through partner banks.
Yes — Mercury provides a developer API that allows businesses to programmatically initiate ACH transfers, create virtual accounts, retrieve transaction data, and automate treasury operations. This is a meaningful differentiator for tech-enabled businesses, startups building financial workflows, or teams that want to integrate banking data into internal tools. Novo does not offer a public developer API; its focus is on pre-built third-party integrations (Stripe, QuickBooks, Etsy, etc.) rather than custom API access.
Mercury formally accepts sole proprietors and freelancers — there is no startup-only restriction. However, its onboarding, interface, and product ecosystem (venture debt, treasury sweeps, team permissions, cap table tooling) are designed for companies that expect to scale. Novo's feature set and positioning more directly address the needs of a solo operator or small team: invoicing, basic integrations, and simple no-fee checking without a complex dashboard. Both are valid options for sole proprietors; fit depends on whether you want simple banking or a platform that grows with a team.
Yes — both Mercury and Novo include a physical Mastercard debit card for purchases and ATM access. Mercury also offers virtual cards for online purchases and team expense management. Novo provides ATM fee reimbursements up to a monthly limit, which is useful for businesses that handle cash. Mercury's ATM reimbursement policy differs — check each bank's current terms at mercury.com and novo.co, as ATM reimbursement limits can change with plan updates.
Mercury supports international wire transfers in USD and select foreign currencies through its platform — a meaningful feature for businesses paying overseas contractors or vendors. Novo does not support outgoing international wire transfers natively; businesses needing international payments through Novo must connect a third-party tool such as Wise or use Stripe for cross-border payouts. If your business regularly pays international suppliers or contractors, Mercury's native international wire capability is a material advantage worth factoring into the decision.
Mercury Treasury (a separate product from the standard Mercury checking account) offers access to money market funds through a sweep arrangement — not FDIC-insured cash interest, but yield-generating for larger balances. The standard Mercury checking account earns no interest. Novo does not offer an interest-bearing or yield product on balances; it is a no-fee checking account focused on integrations and usability, not yield. If earning a return on idle cash is a priority, Mercury Treasury (available to eligible Mercury customers) is the relevant product; Novo has no equivalent. Verify current Mercury Treasury eligibility and yield at mercury.com/treasury.
Independent editorial comparison. ClearValue Lending is not the issuer of any product compared here; affiliate links may pay a referral commission at no cost to you — selection is independent of compensation.