American Express, usually abbreviated as AmEx, is a multinational corporation that offers banking and payment card services. Its headquarters are at 200 Vesey Street in Battery Park City. The institution started its operations in 1850 and is among the 30 components of the Dow Jones Industrial Average. Its cards are among the widely accepted payment cards you can use at various outlets. Apart from offering payment cards, you can also get a checking account from the institution. You will know more about getting an American express business checking account later.
A checking account is a bank account that allows you to keep the money for your everyday uses. Instead of keeping funds in your house, you can use the account to keep funds for your daily needs securely. You can access funds in a checking account 24/7, either via online banking, mobile banking, at a branch, or using your debit card. All checking accounts allow you to have a debit card to make payments and withdraw money at an ATM point.
Some checking accounts allow one to earn interest when maintaining a particular balance or meeting other eligibility guidelines. Interestingly, the American Express Business Checking account is among the checking accounts that allow you to earn interest. Therefore, it is not just about spending money but also earning something from it. For your information, checking account APYs are usually higher than most savings accounts. Perhaps it’s because they require high discipline to meet the requirements.
What are the requirements to open the American Express Business Checking Account?
As per the federal government requirements, every financial company should request various things from the account openers. Even when opening a free online checking account with no ChexSystems, you must as well produce the documents. That helps to prevent criminals such as terrorists from opening accounts.
To open the American Express Business Checking Account, you require the following things.
- Employee Identification Number (EIN) or the Taxpayer Identification Number (TIN)
- Certificate of Formation or Articles of Organization
- A Driver’s License, State I.D., or Passport for every owner
- A Social Security Number (SSN) plus I.D. verification for any Beneficial Owner having ownership of at least 25%
- A “Doing Business As” (DBA) certificate only if the business operates under more than one name
- A business address only for the U.S.
- Information about your industry, the purpose of your account as well as the size of your business
Once you have all that, you can open your account online using a smartphone, computer, or tablet.
How to get an American Express Business Checking Account
You can get started online as no physical branches you can visit for one-on-one assistance. However, the online account opening is more convenient than the in-branch one. You can open your bank account anywhere, anytime, and at your phase.
You can open your account and apply for an American Express® Business Checking account online within 10 minutes. Again, you can switch from your current account to the AMEX checking account in no time. You may also decide to add your current account to the new account and use it to add money via direct deposit.
However, American Express® Rewards Checking account holders are currently not eligible for a Business Checking account. To get started, you have to visit the American Express Business Checking Account page, scroll to the bottom and tap the apply Now button.
Next, you will answer a few critical questions about your business, including your revenue, industry, and how you will use your online business checking account. You must provide your Taxpayer Identification Number (TIN) or Employee Identification Number (EIN) and documentation to prove that your business exists legally.
After approval, you will be able to link an existing bank account, add funds, and start making transactions. You will also be able to connect your account with money transfer apps that accept American Express such as PayPal, Venmo, and Cash App.
You should note that there are no fees for opening an American Express® Business Checking account. Again, there are no maintenance fees or monthly minimum balance requirements whatsoever. However, other fees apply when carrying out various transactions.
What are the benefits of opening a business checking account?
Various benefits come with opening a checking account. They include the following.
i) 1.1% APY on balances up to $500k
Despite being a checking account, it allows you to earn interest on your balances so that your money does not lie there idle. We are used to earning interest on savings accounts. The American Express Business Checking is among the few checking accounts that allow you to get APY.
ii) No monthly maintenance fees.
Financial companies charge monthly maintenance fees to keep your account active. However, not all institutions demand such fees, and AMEX is among them. Therefore, you can save lots of money that you could have lost if you were to pay monthly fees.
iii) No minimum balance.
Some institutions force you to maintain a particular balance on your account. That becomes very inconvenient since you must start to achieve that balance and might be charged if your balance falls below the balance. However, that is not the case with American Express, as you can have whatever balance you need.
iv) Online account management.
You do have to line up at a branch to carry out transactions as you can access your account online using the company’s website or the mobile app. There is an American Express Business Checking app for both Android and iOS applications that you can download to manage your money online conveniently.
There is a lot you can do with your online checking account. For example, you can send money with a checking account number instantly, pay bills, check balance, etc.
v) Excellent personalized customer service with live people
Sometimes you may encounter issues with your account. In such a case, you require assistance from customer care agents to solve your issues. While some institutions do not have easily accessible customer care agents, AmEx does. You can chat with a representative 24/7 to have your matters resolved.
vi) Business Debit card
You can acquire a Business Debit card for ATM cash withdrawals and balance inquiries. That makes it easy to use your money anywhere there is an ATM. You can also utilize your debit card to purchase goods and services online.
Therefore, you do not have to carry cash around. American Express also has other debit cards that you use for your transactions. For example, you can send money with American Express Serve, An American Express prepaid debit card that you can apply online and use for your daily purchases.
Is my money safe at the American Express Business Checking Account?
Your funds at American Express are safe because of the various security layers that have been put in place to ensure safety. When logging in to your account online, you require a password to access your account. Using a mobile money app, you can access your account using your Touch ID, PIN, or face unlock.
Additionally, your money has Federal Deposit Insurance Corporation (FDIC) up to at least $250,000 per account holder. The insurance is offered by the American Express National Bank, a member of FDIC. However, the coverage amounts vary based on various factors such as beneficiaries, ownership, and number of accounts within the same institution.
When it comes to debit card usage, you require a PIN to withdraw money from your bank account. Therefore, no one else can get money out of your account at an ATM. However, if you lose your card, you should make sure that you lock the card as someone can use it online.
Can I open an AmEx business account if I am in the ChexSystems?
AMEX gives you a free checking account with no credit check or deposit that you can enjoy for your business transactions. A credit check refers to pulling a hard inquiry on your credit scores to see if you qualify for a particular loan. Since the account is just a checking account, you will not need any credit scores. Maybe when applying for a credit card or loan, the institution will need to pull a hard credit on your credit scores.
Financial companies pull a hard credit score to ensure that they do not risk giving loans and lines of credit to people who cannot return the money. Remember that if you reach the extent of getting low credit scores, then that means you have been defaulting on loans or making late payments.
Financial companies also check your ChexSystems to ensure a good banking history. However, some institutions can give you a second chance at a checking account to rectify your poor banking history.
The only problem with second chance checking accounts is that they have limited services such as check writing, debit card usage, and limits on the amount you can use per given time. They probably aim to eliminate occurrences that may land you in the same problems until you gain momentum.
Bottom line
American Express is a multinational company that offers payment card and banking services. Its headquarters are at 200 Vesey Street in Battery Park City but operates in the whole country and even abroad.
You can open your checking account online and conveniently manage your account on the go. The Business Checking Account requires no minimum balance, no monthly fees and allows you to earn APY on balances up to $500k.
