If you have an Etsy shop, you’re most likely searching for the best bank accounts for Etsy business because it is necessary to have a verified bank account if you want to sell on Etsy.
You might prefer using your own personal bank account because you’re not sure how your new Etsy business will go, and it might be cumbersome to set up a new Etsy bank account.
Wondering what bank does Etsy use? The fact is there are many different bank accounts that you can choose from as a small business owner on Etsy.
The bank options also varies depending on Etsy eligible countries.
Different countries may have their own preferred Etsy payment methods, with some providing feature such as Etsy installment payments.
It’s easy to get lost in the sea of many bank accounts but I’ve curated the best nine picks on why they’re great for Etsy sellers like you.
At a glance, the top 9 best bank accounts for Etsy business are:
1. Novo Bank
These banks also provide some of the best business accounts for small businesses.
So even if you are still contemplating starting an Etsy business, you’d do well to read on regardless of where you’re hosting your business.
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Best Bank Account For Etsy Business
1. Novo Bank
Novo Bank is your best bank account for Etsy business as it’s popular among entrepreneurs and small business owners. Its mobile app comes with a plethora of functions.
Novo Bank also has many features tailormade for the busy business owner including integration with email and marketing functions.
What makes Novo Bank one of the best bank account for ecommerce business is the zero fees on cash deposit and no monthly fee subscription cost.
This is a great option for new Etsy accounts sellers who are looking for free banking experience.
Having a Chase business account is ideal as they are well-equipped with a good online and in-person presence.
Should you require support, their customer service is also available round-the-clock. Which is great if you’re running your Etsy business from different countries if you’re working as a digital nomad.
Axos is an amazing platform if you’re looking for one that has many services and also is collaborative.
The bank doesn’t have any minimum deposit if you’re using their Basic Business Checking account, which also doesn’t have any minimum balance requirements or maintenance fees.
What makes Axos as one of the best business bank account for e commerce is the completed package for business- including 24/7 customer service, treasury management, mobile banking and merchant services.
If you are looking for a business bank account with interest, Axos offers Business Interest Checking account where you can earn up to 1.01% APY1.
Now if you’re on the lookout for the best account for Etsy business, Bluevine has to be one of your top choices because it has no monthly fees, nor minimum deposits.
That makes it great for business owners who are just starting out and may not have many funds, to begin with.
NorthOne is great for small businesses because it’s available 24/7, as you may be running your small business from anywhere.
Opening an account is also fuss-free, taking less than five minutes to open one online or via the mobile app.
Besides the fuss-free bank set up, NorthOne main highlight is their easy-to-use app, works in any smartphone or tablet. Makes it easy to deposit money, or live chat with customer service when encounter any problem.
However, NorthOne is a subscription base banking service with a cost of $10 USD per month. It is a reasonable price for the unlimited features, such as the integrated account software, ideal for small business.
Is no wonder NorthOne is one of the best business checking account for ecommerce.
Found is a great business bank account if you’re a freelance or self-employed person. You can have access to all banking functions within one app and there are no exorbitant monthly fees that you have to worry about.
As a solo business owner, you’ll also be pleased to know that Found’s app allows you to track your expenses and categorize them – a dream come true for the busy entrepreneur.
Lili is a business bank account that is an excellent choice for anyone who’s running a business solo.
It is extremely value-for-money as a bank account for a solo ranger, considering there are no account fees, minimum balance, or hidden fees.
Should you wish to process your invoices separately outside of Etsy, it also allows you to create, send and store invoices via its app.
Wise is a digital banking platform and also offers Wise Business suitable for business accounts that allow you to receive funds in up to 9+ currencies without additional costs.
Beyond the lower rates in comparison to other banks, Wise Business user experience provides a seamless and easy to use to transfer your money.
With a Wise pay-as-you-go system and transparent fees structure, it makes an ideal bank for Etsy business account with no hassle.
If you are looking for the best bank account for Etsy business UK, Wise offers favorable rates with no hidden fees.
This is great for Etsy sellers, as you may need to spend on purchasing material or supplies in other currency.
Beyond Etsy sellers, Wise Business is also rated as one of the best business bank account for digital nomads without ever worrying about high exchange rates.
Wise Business features an integrated accounting platform such as QuickBooks and Xero. To open a Wise Business, it costs a one-time fee of $31 USD.
Relay business account is another great option for Etsy bank account as it is designed for small businesses.
The stand out feature is the integrated business tools to help ease financial bookkeeping, helping business to run more effectively.
This feature makes Relay stand out as one of the best business bank account for ecommerce business.
With Relay, there are two types of pricing plan, a free plan and a paid plan. The paid plan cost $30 USD monthly with additional benefits such as free domestic and international wire transfers.
How to Update and Verify Your Bank Account On Etsy
Once you have decided which Bank account for your Etsy business, the next step is to get Etsy bank verification for Etsy Payments.
Here are step-by-step on how to add your bank details on your Etsy page:
1. Go to Shop Manager on Etsy and select more.
2. Select Finances and select Payment settings.
3. For a US Bank account, use Plaid’s Instant options to verify your bank account.
4. For bank accounts outside the US, simply add your bank account details and select which deposit schedule you prefer to receive your money.
FAQs on Best Bank Account for Etsy Business
Why Your Etsy Shop Needs A Bank Account
Wondering why your Etsy shop needs a bank account? Your Etsy shop needs its own bank account as it’ll make it easier once tax season rolls around and you’ll have all of your financial information in one bank account.
Keeping your Etsy shop’s bank account separate and giving it its own bank account keeps things simple right from the get-go.
Etsy requires sellers to use a bank account and to self-verify them or to do it through a third-party service like Plaid, so that it can be compliant with money laundering and related regulations.
How To Choose A Business Bank Account?
So, how to choose a business bank account? When choosing a business bank account, there are many considerations. As a small business owner, often you might be the sole decision maker, and it can be a confusing situation for you when trying to narrow down the best banks for small businesses.
Here are some things to look out for when choosing the best bank account for Etsy business or any small business:
- Transaction And Maintenance Fees
- Is There A Minimum Deposit Required?
- Are There Any Introductory Offers You Can Utilize As A Small Business Owner?
- What Other Services Can They Offer To You As A Small Business Owner?
- What Do You Need For Your Business?
How Much Does It Cost To Open A Bank or A Business Account?
Wondering how much does it cost to open a bank or a business account? It can vary across banks. Some banks require an opening deposit which can go from $5 up to $1000 for a business account. While some can simply allow you to open an account with just a $0 deposit.
What Do I Need To Open A Business Bank Account?
So, what do I need to open a business bank account? While the requirements may vary across different business banks, you’ll typically require the following documents to open a business bank account:
- Your employer identification number or your own identification number if you are a sole proprietorship
- Documents showing your business’ formation
- Any ownership agreements or business licenses
Of course, these would differ from business to business, and across different banks. To know documents you need to open a business bank account, check with the bank before you create your account.
Is It Possible To Use PayPal To Get Paid On Etsy?
Wondering is it possible to use PayPal to get paid on Etsy? Etsy sellers can get payment from all buyers through various payment methods- including credit and debit cards, and also sometimes PayPal.
If you opened your shop before April 2021, you should still be able to use PayPal to get paid if your country is eligible for Etsy payments.
As an Etsy seller, you can accept most modes of payment from buyers. From credit card, debit card, Esty credits and coupons, bank transfer, PayPal (if available in your country), Google Pay, Apple Pay, and installment payment methods that might be available in your country.
So in this case, do you need a bank account for Etsy still? If you prefer to get paid through PayPal, then opening a bank account is not needed.
However, it is still highly recommend to have a separate bank account to receive the transaction sales made from Etsy to ease your bookkeeping process.
How To Open An Etsy Shop Without A Bank Account
You will also need to verify your bank account or use a third party to verify your bank account if you want to continue to sell on Etsy.
Do You Need A Bank Account To Sell On Etsy
Does Etsy require a bank account to sell on Etsy? You’ll need a credit card or a bank account to set up a seller account on Etsy and to start selling on Etsy. You’ll also need to have a product to sell.
You cannot sell on Etsy without a bank account as Etsy would not be able to pay you.
Etsy has also made it mandatory for your bank accounts to be self-verified or to be verified with a third-party service as they work towards anti-money laundering regulations.
Should I Make A Separate Bank Account For Etsy?
So, should I make a separate bank account for Etsy? Yes, you should definitely have a separate bank account for your Etsy business!
But if you are wondering do you need a business bank account for Etsy? Having a separate business bank account will benefit you in a long run as Etsy seller as most business account has integrated accounting feature to ease for taxation.
Having a separate business bank account is ideal so that you keep your business finances separate from your personal money. This way you can see at a glance how much money you’re spending and making.
A separate business bank account also helps your Etsy business seem more legitimate with customers, suppliers, and business partners.
You might think that you’d prefer creating a business bank account when your sales volume goes up and when you get customers. However, it’s always good to start on the right footing and to have your finances clear from the get-go.
Is It Safe To Put My Bank Account On Etsy?
Is it safe to put my bank account on Etsy? Yes, it is very safe to put your bank account details on Etsy as Etsy maintains all records of your bank account and transactions.
They do not go through any third-party sites nor do they pass any secure data, including bank account information, to sellers.
Etsy, like many other e-commerce sites, also uses a secure connection or SSL, meaning your personal information on the site is protected. Etsy also uses a feature known as encryption to keep your data safe in case it falls into the wrong hands like hackers.
Do I Need A Business Bank Account For Etsy UK?
So, do I need a business bank account for Etsy UK? While you do not need a business bank account when operating as a seller with Etsy account UK, and could just use a regular bank account, it is recommended to use a separate, dedicated business account regardless.
Which Is The Best Business Bank Account For E-Commerce?
Wondering which is the best bank for ecommerce business? Novo Bank, Chase, Axos, Bluevine, NorthOne, Found, Lili, Wise and Relay are some of the best small business banks providing accounts for e-commerce or if you’re looking for an account for your Etsy business.
When choosing a bank, it’s always good to be cognizant of your business needs, your sales volume, and the number of people your business could potentially have.
These factors would ultimately affect what type of bank account you choose. It isn’t always just about securing the one with the lowest deposit and transaction fees, and the highest interest rate.
Do I Need A Separate Account To Sell On Etsy?
So, do I need a separate account to sell on Etsy? If you’d like to create a second shop on Etsy, you most certainly need to create a new separate account with another email address. One email address only allows for one Etsy shop at a time.
What Bank Account is Best For Etsy
Here are 9 Bank Account Best for Etsy Sellers:
1. Novo Bank
What is the Safest Way to Get Paid on Etsy
Wondering what is the safest way to get paid on Etsy? Paypal is the safest way to get paid on Etsy with Paypal Direct is now integration, helping sellers to get more consistent payment and covered by Etsy Seller Protection.
The seamless process also makes it safe and simple for customers to make purchases in the Etsy marketplace.
How Much Does Etsy Take Per Sale?
How much does Etsy take per sale? Etsy collects 6.5% for every sale made. When a customer makes a purchase from your store, the transaction fee of 6.5% is automatically processed for Etsy Payments users. Etsy’s transaction fees include the amount charged for the product, shipping and gift wrapping.
Can You Use Debit Card to Sell on Etsy?
Can you use debit card to sell on Etsy? Yes! Etsy Payments do allow sellers to use various ways to receive payment, including using debit cards, credit cards, PayPal, Digital bank, Apple Pay, Google Pay and more! However, Etsy Payments is not available to all countries, do check out their terms and conditions if your country is eligible.
Best Business Bank Account for Amazon Seller UK
Here are top 5 best business bank account for Amazon Seller UK:
Ready to Find the Best Bank Account for Etsy Business?
If you’d like to learn more about opening a second shop on Etsy (Yes, it’s fine to have more than one!), I’ve got you right here with this handy-dandy guide!
Choosing the best bank account for your Etsy business can seem intimidating from the get-go. There are so many options out there and it’s easy to get lost in the sea of choices.
If you’re thinking seriously about opening a business bank account, then the good news is you’re already on the right track.
As a budding business owner, you’ll want to keep your finances separate right from the beginning so that you don’t confuse yourself unnecessarily with your cash input and outflows.
It also simplifies things once tax season rolls around as you just need to look at one account for all the financial details.
If you find yourself overwhelmed by the choices of banks for your Etsy business or small business, always consider what’s most important for you, and then make your decision from there.
For quick and fuss-free to bank your money in, and you are merely looking for somewhere with zero minimum deposit, then look for the bank that can do this the fastest.
However, if you’ve got time, look more into functions, facilities, features, and interest rates.
It’s really not as complicated as you think to secure the best bank account for Etsy business. Just give it a go, girl boss!
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