Kabbage Business Checking: 2024 Review

Summary of our opinion

Don’t have time to read it all? Here is a summary of our opinion on Kabbage, to help you understand whether Kabbage is a good choice for you or not!

Kabbage Checking is offered by Kabbage, a direct lender founded in 2008 and based in Atlanta, GA and their checking account is available in all 50 states. Whilst not a bank, Kabbage Checking is backed by Green Dot Bank, member FDIC, and customers’ accounts are FDIC-insured to the maximum allowable limits. 

There is no minimum beginning deposit required to create a Kabbage Business Checking Account, making it ideal for startups.

A high annual percentage yield is offered on balances up to $100k making this account stand out from the crowd of business checking options.

Your Kabbage Checking account can receive domestic wire transfers from another bank account and Kabbage doesn’t impose a fee for incoming domestic wire transfers.

In summary, Kabbage makes it quick and affordable to set up a bank account for your business through the Kabbage dashboard or app where you can track your finances, pay bills, create sub accounts and access credit.

For a full in-depth review, the following is our opinion of Kabbage in detail.

Kabbage fees

Fee structure and features

Here is a summary table of Kabbages’s main pricing plans for self-employed workers, freelancers and others:

	Kabbage Business Checking Account
Monthly fees	$0
Opening deposit	$0
Minimum balance	$0
Overdraft fee	$0
Incoming ACH	$0
Outgoing ACH	$0
Wire transfer fee	$25 per outgoing transfer
Deposit fee	Up to $4.95
Foreign Transaction Fee	3%
Subaccounts	Create up to 5 subaccounts
Online banking	Included
Monthly transactions	Unlimited e-transactions (ACH transfer, online bill pay, direct dep., mobile check dep.)
Annual Percentage Yield (APY)	1.10% up to $100,000
Cash Deposit Fee	Cash Deposits at CVS, Walmart, Walgreens: Up to $5k cash/day at 90,000 locations for $4.95/dep.
ATM Fee	$0
Support	Mon – Fri: 8am to 8pm EST
Checks	Free mobile check deposit

The annual percentage yield (APY) is a percentage that reflects the amount of money, or interest, you earn on a bank account over one year. 

As of the time of this writing, the Kabbage Checking account offers a competitive annual percentage yield (APY) of 1.10% on deposits up to $100,000. There is no interest accrued on total sums that are more than $100,000.

It is not necessary to maintain a minimum amount in order to receive interest, and interest will be accumulated on all of your assets even if they are stored in Reserves.

Our opinion on the monthly cost

As business bank accounts for LLCs, freelancers and startups go, Kabbage offers a very competitive price point. 

We like the fact that there are no monthly, transaction fees or minimum balance requirements, a huge help for businesses starting out. 

Kabbage doesn’t charge for incoming domestic wires and gives you fee-free access to in-network ATMs. In addition, Kabbage does not charge out of bank network fees for cash withdrawals—although the bank cash machine operator may incur fees.

With Kabbage Funding™, you can apply for a Kabbage business line of credit up to $150,000. If approved, you can manage your account and repayments through the Kabbage dashboard.

The Kabbage Funding application can get you approved for a line of credit quickly. All you need to do is provide your business information, bank account info and personal information. 

If your LLC needs a checking account and line of credit, Kabbage may be the perfect fit. Given the range of features offered, the price seems very affordable.

Our opinion of the other fees

Incoming and Outgoing ACH fees are zero, which is attractive and great for businesses who have many transfers. There is however an Outgoing wire fee of $25.00, whilst cash deposit fees are charged at $4.95 per deposit. 

There are no fees for incoming domestic wire transfers however and Kabbage is an affordable option compared to other banks and players in the market.

Who can use Kabbage?

You have to be the owner of a small or medium-sized business, at least 18 years old, and have a U.S. address that can be verified in order to create a Business account.

Customers need to be citizens or permanent residents of the United States and have an address in the United States that can be verified. It’s possible that the IRS may ask for a confirmation letter about your EIN in certain circumstances.

Means of payment

Regarding payment methods, Kabbage mainly offers the following:

Payment	Features offered?
Debit card	Mastercard
Checks	Yes
Wire transfers	Yes, with a $25 fee
ACH transfers	Yes
International wires	Yes, with a 3% transaction fee

The question of means of payment remains the same as for other financial institutions: Will your business be satisfied with these means of payment. This is a decision each individual business owner will have to make. 

If the answer is no, you can always consider Kabbage in addition to a traditional bank (and still pay a smaller overall price if you combine all the banking services in the traditional bank).

Customers of Kabbage have the option to make bill payments quickly and simply using the company’s Online Bill Pay service. Customers of Mobile Banking Services have the additional option of managing their finances either online or through the mobile app.

This includes using a smartphone app to deposit checks into your account rather than going into the bank.

Means of collection

The means of collection are the basics of any financial institution. Kabbage customers can conduct various means of transfers, generally the fastest method to transfer funds electronically. 

For foreign transactions, Kabbage applies a fee of 3% to total transaction amounts.

Payment	Features offered?
Check	Yes
Wire transfers	No charges for incoming wires (domestic)
ACH transfers	Yes
International wires	Yes, with a 3% fee

Transfers

Customers have the ability to swiftly move monies into or out of their checking accounts at your business from accounts held at other banking firms.

Credit card reader

Kabbage doesn’t offer a credit card payment terminal, but is compatible with the vast majority of classic terminals as well as modern payment terminals including Square, SumUp, Clover and Payanywhere.

Services and features offered by Kabbage

Kabbage offers a bank account focused around features dedicated to small businesses and professionals. These offers are exactly what have made Kabbage stand out from the competition.

A quality business bank account

Kabbage offers the classic services of an online bank, within an intuitive interface. The use of the account is straightforward and you can carry out all your tasks within a few clicks.

Kabbage focuses on excelling at the basic banking services for entrepreneurs, bolstered by it’s parent owners American Express.

A wide range of services for all entrepreneurs

In addition to being an excellent professional bank account, we appreciate the various services offered by Kabbage including:

• Pay via ACH or wire transfer
• Mobile app transactions
• Online Bill Pay

Kabbage Payments

Kabbage Payments, which is directly connected to your bank account, gives you the ability to take bank card transactions from your clients for up to $10k per transaction. This service is supported by American Express, which is Kabbage’s parent business.

It is possible to generate a personalized URL that enables you to take payments online, and then distribute it through text messages, emails, or a web page.

Customers have the ability to retain customer and item information, as well as create invoices with your company logo.

There are presently no monthly fees, fees, or commitments associated with Kabbage Payments; however, the company does mention an initial fee of 2.25 per cent per purchase for card-not-present purchases.

Subaccounts

You may set up as many as five separate savings accounts using Kabbage Reserves, each of which can be used to put money aside for a different purpose. Because of this helpful function, you are able to segment revenue streams according to product, manage cash in accordance with requirements, and put away money for certain investments.

When transferred to your primary Kabbage checking account, funds that were previously held in Reserves become available for spending.

Savings

As your subaccounts are part of your Kabbage account, funds left there will earn the same 1.1% interest up to a maximum of $100,000.

You receive a debit card and the ability to make free cash withdrawals at any of the more than 19,000 ATMs that are part of the Kabbage Checking network around the country when you open a checking account with Kabbage. The mobile app has an ATM finder that may point you in the direction of the closest available machine.

Furthermore, Kabbage does not levy any fees for any transactions that take place at cash machines that are not a part of its network. However, depending on the financial organization whose ATM you use, you could be required to make a payment to them.

The ability to make cash deposits is one of the services that Kabbage provides to proprietors of small businesses. This is made possible via our relationship with Green Dot, and there are over 19,000 retail locations throughout the United States where you are able to make deposits of cash.

Each cash deposit might cost you an additional fee from Green Dot of up to $4.95. Green Dot has the right to impose daily limitations on cash deposits as well.

Nationwide ATM Network

Withdraw cash for free at any ATM in the Kabbage network. Use the ATM finder within the Kabbage mobile app to find locations near you. ATM withdrawals are limited to $2,000 cash in a day.

Kabbage Loans

Small business loans of between $1,000 and $250,000 are now available to new customers. In addition, Kabbage offers a range of financial services for SMB’s.

Online banking tools and integrations

Kabbage’s performance is not as strong as it is in other areas because to its lack of integrations with third-party tools like as accounting systems, invoicing software, and payment systems.

For instance, Novo interacts directly with software tools such as QuickBooks, Xero, Stripe, Shopify, and Slack. In addition, Novo offers free online bank accounts for businesses. Additionally, Novo provides a free corporate checking account for its customers.

Fraud monitoring

Whenever a debit bank card is used suddenly at a different place or when you make a rapid series of expensive purchases, Kabbage checking will monitor these transactions to look for possible illegal activity.

Examples of this include when you make a rapid string of purchases.

Kabbage insights

Sync your account to Kabbage Insights to track your cash flow and forecast future performance.

A useful mobile application

In addition, you’ll have the option to control your account using the web dashboard provided by Kabbage or by installing the mobile app, which is compatible with devices running either iOS or Android.

The use of a smartphone app on your phone to deposit checks into your account is one of the services provided.

Open a Kabbage account

Opening a bank account with Kabbage is very simple. Start by going to the official website, and follow the instructions. You will need to provide some information related to the company in order to complete the procedure (which only takes a few minutes).

At a minimum, you’ll need to provide the following information:

• Proof of identification: This can be verified either through supplementary documents like your driver’s license and/or social security number.
• Business business information: This will include information about your business like address, EIN, and articles of incorporation.

Generally, applications are reviewed within 24 hours; however, the process may take anywhere from 3 – 5 business days. After you receive approval from Kabbage, you’ll need to accept the account agreement and then you’ll be able to fund and access your account.

Customer Service and Support

Kabbage is available from Monday to Friday from 8am – 8pm EST. Customers can call 1-888-986-8263 or send an email to support@kabbage.com. 

They also have multiple resources and support articles on their website and business blog. 

Kabbage: Customer reviews

As of this review update, Kabbage had more than 6,700 reviews on Trustpilot, for an average rating of 3.4/5.

A comprehensive study of Kabbage reveals that the firm has been around for quite some time and has built up a respectable reputation among the pool of contemporary online banking choices.

The firm’s image may have taken a blow among customers who were unhappy with the Kabbage PPP loan service they had, but American Express, the company’s new parent company, has a stellar reputation in its own right and is behind the business.

82% of reviews were rated as ‘Excellent’ however and when reading the positive reviews, two elements stand out very often including the ease of business with the American Express integration and the easy online application process. 

Kabbage: Overall verdict

Kabbage asserts itself as one of the best professional banking offerings at the moment, whether you are self-employed, a startup or a growing LLC. 

Fintech is a great option for business owners that prefer to manage their finances online and don’t need access to a bank branch and who are looking for a simple, low-fee, and interest-earning checking account. 

Kabbage offers a professional bank account underpinned by their:

• No monthly fees
• No overdraft fees 
• Unlimited electronic transactions (ACH transfer, online bill pay, direct deposit, mobile check deposit)

All in all, a great bank worth considering for any startup, with a lot of useful features including free mobile check deposit facility, online dashboard and fee-free access to over 19,000 ATMs across the U.S for cash withdrawals.