Mercury and Novo both offer free core business banking with no monthly fees, but Mercury adds tiered paid plans (Plus, Pro) with treasury yield, higher…
Best for Mercury: Businesses that expect to need higher invoicing or reimbursement limits, a dedicated relationship manager, or yield on large idle balances ($250K+) as they grow.
Best for Novo: Businesses that want to stay on a single free checking plan with built-in invoicing, expense tracking, and Novo Reserves without evaluating paid tiers.
At a Glance
Mercury
Novo
Primary category
Finance
Finance
Rating
Not documented
Not documented
Pricing model
Freemium
Free
Starting price
Free (paid plans from $29.90/month)
Free (no monthly fees on the core checking account)
Free plan
Yes
Yes
Free trial
Not documented
Not documented
Platforms
Web, iOS, Android
Web, iOS, Android
Team collaboration
Not documented
Not documented
AI features
Yes
Yes
Public API
Yes
Not documented
Key Differences
Pricing Tiers vs. Single Free Plan
Mercury: Mercury offers three tiers (Free, Plus $29.90/month, Pro $299/month) unlocking progressively more invoicing API volume, reimbursement seats, and a dedicated relationship manager.
Novo: Novo's facts document a single free business checking plan with no paid tiers listed.
Growing companies needing higher reimbursement or invoicing limits have a documented upgrade path with Mercury.
Treasury / Yield Product
Mercury: Mercury offers a treasury feature yielding up to 3.64% via Mercury Advisory, requiring a $250K+ balance.
Novo: Novo's facts don't mention any yield or treasury product.
Businesses holding significant cash reserves may want yield on idle balances.
Named Accounting Integrations
Mercury: Mercury documents syncing with QuickBooks, Xero, and NetSuite specifically.
Novo: Novo's facts state it has "Tool Integrations" for accounting, payments, and payroll but don't name specific platforms.
Businesses using a specific named accounting tool need confirmation of direct support.
AI Model Transparency
Mercury: Mercury states it uses AI for bill pay and transaction categorization but doesn't name the underlying models.
Novo: Novo explicitly states its AI features are powered by Claude, OpenAI, and Gemini.
Some buyers care which AI vendors are processing their financial data.
Direct Bank vs. Partner Bank Structure
Mercury: Mercury's facts don't describe an explicit partner-bank disclosure.
Novo: Novo's facts state banking services are provided through a partner bank (Middlesex Federal Savings, F.A.) rather than Novo directly.
Understanding who actually holds deposits and provides FDIC coverage matters for banking trust and compliance.
Feature-by-Feature
Core Banking
Feature
Mercury
Novo
Free business checking (no monthly fees)
Available
Available
Business credit/debit cards
Available
Available
Virtual cards
Available
Not documented
Treasury / yield on balances
Available
Not documented
Payments & Accounting
Feature
Mercury
Novo
Invoicing
Available
Available
Named vendor/employee payments feature
Not documented
Available
Named accounting software sync (QuickBooks/Xero/NetSuite)
Available
Not documented
Automated expense categorization
Available
Available
AI bill pay / AI-assisted categorization
Available
Available
Trust & Scale
Feature
Mercury
Novo
Documented app store rating
Available
Available
Stated user base scale
Available
Available
Named AI model providers
Not documented
Available
Business loans
Not documented
Available
Pricing Compared
Starting price reflects the lowest paid tier, not the full cost for every team size or usage level.
Mercury
Mercury (Free) — $0/month N/A
Mercury Plus — $29.90/month ($23.95/month billed annually) Monthly or annual
Mercury Pro — $299/month ($239.90/month billed annually) Monthly or annual
Novo
Novo Business Checking — Free No monthly fee
Pros & Cons
Mercury
Pros
Free core banking account with no monthly fees or minimum balance requirements
Modern, developer- and founder-friendly interface with strong startup ecosystem integrations
Backed by well-known venture investors and has raised substantial funding, suggesting financial stability
Bundles banking, invoicing, treasury and credit into a single platform
Popular and well-reviewed among the venture-backed startup community
Cons
Not a chartered bank itself, so accounts rely on partner-bank infrastructure that has changed over time
Advanced features such as a dedicated relationship manager require the higher-cost Pro plan
Primarily optimized for US-based startups, with more limited international support than some competitors
Fee-free ACH debit invoicing requires the Pro plan; Plus users pay per transaction
As with any fintech relying on partner banks, account changes tied to banking-partner transitions have occurred historically
Novo
Pros
Genuinely free checking account with no monthly maintenance fees
Novo Reserves make it easy to set aside funds for taxes or savings without a separate account
Strong integrations with Stripe, Shopify, QuickBooks, and Xero for small business workflows
No fees for ACH transfers, insufficient funds, or debit card replacement
Modern, app-first user experience compared to traditional business banks
Cons
Not a bank itself, deposits are held through a partner bank rather than Novo directly
No interest-bearing checking or built-in high-yield savings option
Limited to a single core account type, less product breadth than some competitors like Mercury
Outgoing domestic wire transfers carry a fee
Customer support and dispute resolution can be slower than at larger traditional banks
Use Cases
Choose Mercury: Businesses that expect to need higher invoicing or reimbursement limits, a dedicated relationship manager, or yield on large idle balances ($250K+) as they grow.
Choose Novo: Businesses that want to stay on a single free checking plan with built-in invoicing, expense tracking, and Novo Reserves without evaluating paid tiers.
Need both: The facts describe these as substitutable core banking products for a single business rather than complementary tools — most companies would use one primary business bank account, not both simultaneously.
Mercury
Startup Banking and Runway Management — Venture-backed startups use Mercury as their primary bank account to manage runway, payroll funding and vendor payments.
Startup Treasury Management — Companies with significant cash reserves use Mercury's treasury features to earn yield on idle operating cash via money-market fund access.
Small Business Invoicing and Bill Pay — Small digitally native businesses use Mercury's built-in invoicing and bill-pay tools to manage day-to-day finance operations without separate software.
Novo
Freelancer and solo entrepreneur banking — Independent contractors and freelancers separate personal and business finances with a free, no-minimum checking account.
E-commerce payout management — Online sellers use Novo Boost to get faster access to Stripe and Shopify payouts and track cash flow in real time.
Small business budgeting with sub-accounts — Small business owners use Novo Reserves to automatically set aside funds for taxes, payroll, or growth goals without opening separate bank accounts.
Frequently Asked Questions
Are Mercury and Novo really free?
Both offer free core business checking with no monthly fees or minimum balance; Mercury's paid Plus ($29.90/month) and Pro ($299/month) tiers add features, while Novo's documented plan is its single free Business Checking account.
Does either offer a yield or treasury product?
Mercury offers up to 3.64% yield via Mercury Advisory for balances of $250K or more; Novo's facts don't mention a yield or treasury product.
Which accounting tools does each integrate with?
Mercury syncs with QuickBooks, Xero, and NetSuite; Novo states it connects accounting, payment, and payroll tools but doesn't name specific platforms.
Do these platforms use AI?
Both do — Mercury uses AI to read and populate bill details and categorize transactions; Novo uses AI powered by Claude, OpenAI, and Gemini for onboarding and expense categorization.
Who actually holds the deposits?
Novo's facts state banking services are provided through Middlesex Federal Savings, F.A., a partner bank; Mercury's facts don't include an equivalent partner-bank disclosure.