If you own a small business selling products and services electronically, it’s a good idea to have a bank account that is specifically suited for eCommerce businesses.
This can save you hundreds of dollars a year in account fees, valuable services, and benefits that you wouldn’t otherwise be able to access with a normal bank account.
Of course, not all banks offer the same benefits. And, not all banks allow foreign businesses to open accounts 100% remotely or open a business bank account online (or in person).
It’s all about knowing which banks to approach in order to successfully open an account.
To help you get started, we’ve put together a guide on how to open a bank account for an eCommerce business. Read on below as we share the details on how to choose and open the right bank for you and your business.
Here’s a look at everything we’ll cover in this article…
Table of Contents
- How to Open a Bank Account for an eCommerce Business?
- Why Choosing the Right Bank Account for an eCommerce Business is so Important
- How to Choose the Right Bank Account for an eCommerce Business?
- What Are the Requirements for Opening an Account for eCommerce Business?
- Where to Open a Bank Account for an eCommerce Business?
- Ready to Open an Offshore Bank Account?
How to Open a Bank Account for an eCommerce Business
Opening a bank account for an eCommerce business requires an account opening strategy. This includes knowing which banks accept foreign businesses, what key features to look for when choosing a bank, and the requirements you will need to meet. We outline this process and more below.
In this article, we’re going to cover the proper steps you need to take to open a bank account for an eCommerce business.
Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Business Banking Starter Guide. It’s designed to help your business find and open accounts with the services you need around the world.
Why Choosing the Right Bank Account for an eCommerce Business Is So Important
Choosing the right bank account for an eCommerce business isn’t an easy task. However, it’s worth taking the time to do it properly. Mainly because it can save you a great amount of time and money going forward.
For instance, when you open an account with the right bank that offers the financial offerings, corporate banking solutions, and features you require, you avoid being overcharged on account fees. Including, monthly maintenance fees, transaction fees, and even annual account fees.
But, that’s not all.
There are many additional benefits you can unlock when you open the right bank account for an eCommerce business.
Benefits of Choosing the Right Bank Account for an eCommerce Business
- No account opening deposit required
- Accessible mobile app
- Easy-to-use online banking features
- Access to offshore debit & credit cards
- Low to no monthly account fees
- Low to no foreign transaction fees
- Attractive financing
- Unlimited transactions
- No minimum account balance required
- Low to no annual fees
- And much more…
As you can see, there are countless benefits to choosing the right bank account for an eCommerce business.
Of course, the benefits available to you will depend on your client profile and banking needs. Not to mention, the bank you choose to open an account with.
So, before applying, it’s important to know which benefits are important to you and your business. Doing so will help guide you in the right direction of knowing what bank to open with.
Read on in the next section to learn how to choose a bank account for an eCommerce business that offers the benefits you’re after.
How to Choose a Bank Account for an eCommerce Business?
When it comes to choosing the right bank account for an eCommerce business, the first thing you need to do is to get clear on what specifically the type of account your business needs and understand the meaning of a corporate account.
That way, you can ensure you’re choosing a bank account that not only caters to your client profile but also meets your specific banking needs.
To get started, we’ve compiled a list of the key features foreign eCommerce business owners should look at before choosing a bank to open with.
Features to Look For in a Bank Account For eCommerce Business
- No account costs
- No account restrictions
- Easy-to-use online banking
- Account Integration
- Payment processing systems
- Debit & credit cards
Let’s look at the first four features in more depth…
No Account Costs
If you have an eCommerce business and are just starting out, you’re likely looking to keep expenses to a minimum. This is key, as many foreign small businesses choose the wrong banks and get stuck paying outrageous account charges.
Luckily, these kinds of charges can be kept to a minimum, if not avoided entirely, by taking the time to choose the right bank.
So, before applying to any bank, be sure to request a breakdown of the bank account fees. Specifically, look for how much it will cost to operate the account on a monthly and annual basis.
Additionally, you’ll want to determine whether or not the bank charges fees for transactions, account opening, or even for holding a minimum balance. That way, you can make an informed decision on whether the bank you choose is a suitable and also affordable option.
No Account Restrictions
Many banks have strict regulations and guidelines that all customers need to follow. However, for many foreign business owners, it’s important to check that these regulations don’t restrict their business operations.
For instance, some banks limit the number of daily and monthly transactions you can make. If your business engages in frequent transactions, this could be a huge obstacle to your business activities.
So, when choosing a bank to open with, it’s important you choose a bank that matches your particular business practices. More specifically, a bank that doesn’t restrict you from operating your business on a daily basis.
Easy to Use Online Banking
One feature that is very important to many eCommerce businesses, is choosing a bank that has accessible online banking services.
Specifically, a bank that has a mobile app, easy-to-use online banking functions, and accepts mobile check deposits.
This is particularly important if you have a foreign-owned business so that you can save the time and headache it would take to physically travel to a branch to conduct your banking affairs.
So if you live outside of the country where you bank, it should be a top priority to choose a bank with an easy-to-use online banking platform.
Accounting Integration
Another key feature that you should look for is the ability to integrate your account with core business software services.
For example, can you connect your accounting software directly to your bank account to manage sales, payroll, account statements, and expenses? This is key to helping you manage your daily business activities in a much more efficient and effective way.
While this might seem like it should be standard practice by now, not all banks offer this feature yet.
So, before applying to open a bank account for your eCommerce business, be sure to check with the bank you’ve chosen to see if this is a possibility. This seemingly small feature can have a major impact on how you manage your business. Not to mention, can save you a significant amount of time and money each month.
As you can see, there are many features to look for when choosing a bank account for an eCommerce business. Which ones matter most to you will depend on your specific banking needs.
Now that you know what you’re looking for, let’s look at what banks are looking for. This way, you can see what you’ll need to be able to open an account with the bank of your choice.
What Are the Requirements to Open a Bank Account For an eCommerce Business?
The key to successfully opening a bank account for an eCommerce business is being on top of the requirements you need to meet before applying. That way, you will significantly increase your chances of being able to successfully open an account.
Note that not all banks (and bankers) follow the same guidelines. So, you’ll need to do your research on the specific banks you’re considering to find out exactly what you need.
But to help you get started here’s a list of the general requirements you’ll need to open a bank account for an eCommerce business.
Required Documents to Open a Bank Account for an eCommerce Business:
- Two forms of government-issued personal identification
- Copy of eCommerce business license
- Employer identification number (EIN)
- Articles of organization (if applicable)
- Operating Agreement
- Financial statements
- And more…
In addition to the required documents mentioned above, you may be required to submit additional paperwork depending on the structure of your business and the bank you choose to open with.
As always, your best bet to being accepted by a bank is to apply to banks that are open to your client profile. If you try to open an account with a bank that is skeptical about your business, for example, you’ll face additional obstacles throughout the process.
On the other hand, if you go to a bank that has a track record of accepting clients of your profile, the whole process will be much smoother.
So, how do you find banks that are open to eCommerce businesses and your specific client profile? Read on…
Where to Open a Bank Account for an eCommerce Business?
Choosing where to open a bank account for your eCommerce is a critical decision that can have a huge impact on your business’s success in the years to come.
As mentioned before, your best bet to open a high-quality account for your company is to find a bank that is predisposed to opening accounts for eCommerce businesses and your specific client profile.
When it comes to finding the right bank for you, the first step is to narrow down the banking jurisdiction.
Not all banking jurisdictions allow foreign businesses to open bank accounts for eCommerce businesses, but, as you’ll see, some jurisdictions are very welcoming to eCommerce businesses.
Below, we have put together a list of some of the most popular banking jurisdictions where foreign non-residents can open accounts for their eCommerce business.
With that in mind, let’s dive into each jurisdiction one by one…
Open a Bank Account for eCommerce Business in the USA
When it comes to opening a bank account for an eCommerce business, the US is at the top of the list of banking jurisdictions. This is because, unlike other banking jurisdictions, banks in the US do not require proof of ties to the US or proof of US residency.
Of course, that doesn’t mean opening an account here is easy.
There are many other account opening requirements an eCommerce business needs to meet. And, depending on the bank you choose to open with, the requirements can vary dramatically.
But, it’s 100% possible. And, if you can successfully open an account here, you’ll be able to unlock a wide range of lucrative benefits. Including, most prominently, access to US credit cards.
In fact, opening a bank account in the US not only gives you access to US credit cards but also enables you to build a US credit history for financing and mortgages. Again, without needing to have any ties to the country.
And, to top it all off, foreign non-resident business owners can even open accounts without being in the country (if you know where to go).
If you’re interested in learning more about how to open a bank account for an eCommerce business in the United States and how to maximize the benefits of banking here, you can access our premium-members-only report “US Banking for Non-Residents, Foreigners, & Int’l Businesses” for more information.
You can access this report immediately when you join GlobalBanks USA.
Open a Bank Account for eCommerce Business in the UK
Another excellent option to open a bank account for your eCommerce Business is the UK.
As a leading global financial center, the UK banking system has a very strong reputation for economic stability and acceptance of international businesses.
However, opening a bank account in the UK can be very challenging. Not to mention, time-consuming if you don’t know which bank, branch, or banker to speak with directly.
The biggest challenge here is providing valid proof of a UK address and a UK phone number. If you’re unable to meet these two specific requirements you’ll likely be denied by most UK banks.
Now, with that said, if you want to open a bank account for an eCommerce business in the UK without having a UK address, it’s still possible.
We cover the entire account opening process, including how to overcome these specific challenges, in our premium members-only report “UK Banking for Non-Resident UK LLPs & UK LTDs”.
You can access this report immediately when you join GlobalBanks IQ.
Open a Bank Account for eCommerce Business with Digital Banking Platforms
Another great option to open a bank account for your eCommerce business is through a digital banking platform.
This is an option worth considering if you’re struggling to open bank accounts with traditional brick-and-mortar banks. Or, if you find that your existing bank account has overly high transaction fees.
Depending on the digital banking platform you choose to open with, the requirements for opening an account can vary. But overall, digital banks are much more lenient when it comes to account opening requirements than traditional banks. Of course, you need to know which platforms to apply with.
If you’re looking to open a bank account for an eCommerce Business in Europe but are struggling to open with a traditional bank, you’re in luck!
Our premium members-only report “European EMIs for Non-EEA Businesses” outlines everything you need to know about opening the best online bank account. Including a breakdown of each digital banking platform, who they cater to, and of course, the account opening process.
You can access this report immediately when you join GlobalBanks IQ.
Ready to Open an Offshore Bank Account?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…
+ Direct support from a team of banking experts
+ Direct introductions to your desired banks
+ Answers to your most pressing questions and challenges
+ Expert insights on which banks to choose & why
+ Plus, FULL access to our entire suite of account opening tools and intelligence!
And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.
Use this link to see how GlobalBanks Insider can help you successfully open accounts.