Choosing between digital banking platforms means understanding not just what features they offer, but how those features support the way you actually run your business. A platform optimized for venture-backed startups operates differently than one built for established businesses managing complex cash flow.
This comparison examines Relay and Mercury's distinct approaches to business banking1: Relay's multi-account cash flow system versus Mercury's automation-first infrastructure.
Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
How Each Platform Approaches Business Banking
Relay and Mercury both offer modern business banking platforms, but they serve different business realities.
Relay prioritizes cash flow visibility through account separation, enabling you to segment cash across payroll, taxes, materials, and operations within a single banking platform.
Mercury prioritizes startup-specific infrastructure and scaling operations. The platform targets venture-backed companies with features like venture debt access through Mercury Lending, API capabilities, and Mercury Treasury for businesses with larger balances (providing yields around 3.9-4% annually on invested cash as of December 2025; rates are variable and tier-based, SIPC-protected, not FDIC-insured). Mercury does not support cash deposits, and some advanced workflow features require paid plans starting around $30/month.
FDIC Coverage
Deposit protection matters when choosing where to hold business cash. Both platforms exceed standard FDIC coverage through automated sweep programs, with coverage amounts tailored to different business sizes.
Relay offers $3 million coverage through Thread Bank's insured cash sweep program2, which uses IntraFi to spread deposits over $250,000 across a network of FDIC-insured program banks. This coverage level serves the vast majority of small and medium businesses, which typically operate well below this threshold.
Mercury provides $5 million in total FDIC coverage through its partner bank network, designed for venture-backed companies that may hold larger cash reserves.
Both platforms provide more than adequate protection for their target audiences.
Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions on the sweep program. Pass-through insurance coverage is subject to conditions.
Account Structure
How you organize money across accounts shapes your daily visibility into cash position. Each platform takes a different approach to account organization.
Relay provides up to 20 checking accounts on its Starter and Grow plans. Each account receives its own routing and account number, functioning as a complete checking account. This structure supports sophisticated cash flow management: operating expenses in one account, payroll in another, tax reserves in a third, profit in a fourth.
Mercury requires no minimum balances. Businesses can open multiple checking and savings accounts to organize money across different purposes, serving those managing multiple entities or requiring extensive departmental separation.
Team Spending Controls
Controlling how employees spend company money requires different tools depending on your management style. Each platform offers distinct approaches to spending oversight.
With merchant-level transaction restrictions, Relay lets you limit individual cards to specific vendors. You can restrict a marketing card to only Meta and Google Ads platforms, for example. Relay supports 50 physical and virtual debit cards2 per business account with these restrictions.
Mercury uses multi-user approval workflows. The platform controls who has authority to approve different payment types rather than restricting where cards work. Teams using Slack benefit from Mercury's integration, receiving approval notifications and the ability to approve or decline payments directly within Slack.
Transaction destination limits define Relay's model; approval authority limits define Mercury's. Choose based on whether you prefer to control spending at the point of transaction or control who authorizes spending decisions.
The Relay Visa® Debit Card is issued by Thread Bank, member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa debit cards are accepted.
Integration Quality
Your banking platform connects directly to your accounting workflow, and integration quality directly impacts your monthly bookkeeping costs.
Relay offers bidirectional QuickBooks Online and Xero integration. Unpaid bills import from your accounting software into Relay, get paid through the banking platform, and sync payment status back to your books.
Mercury also integrates with both platforms, allowing transactions to sync to your accounting software. Mercury lets you apply GL codes and customize categorization rules before syncing, reducing manual categorization work after import.
Support Quality
When banking issues arise, response time and channel access matter. Each platform structures support differently.
Relay provides multi-channel support including phone and email access. Phone support is available 9 AM to 8 PM EST, Monday through Friday.
Mercury offers support primarily through email and in-app help with comprehensive self-service documentation. Complex issues may require more back-and-forth through these channels.
Relay currently holds a rating of around 4.4/5 on Trustpilot as of December 2025, while Mercury holds around 4.1/5 (Trustpilot ratings are external and change over time).
Which Platform Matches Your Business Model
Your business model determines which platform's strengths align with your operational needs.
Choose Relay if:
Your business requires sophisticated cash flow management across operational categories
You need to separate sales channel revenue, inventory purchasing, and fulfillment costs (e-commerce)
You want role-based card access with merchant-specific spending restrictions (professional services)
You operate with variable cash flows that traditional minimums would penalize (trades businesses)
You value direct phone access for urgent issues
Choose Mercury if:
You need venture debt access alongside banking services
Your team already operates in Slack and benefits from integrated approval workflows within that platform
Your deposit levels require Mercury's higher $5M FDIC coverage threshold
You don't require cash deposit capabilities
Industry patterns emerge clearly: Relay serves established small to medium businesses ($100K-$6M revenue) with operational complexity requiring cash flow segmentation. Mercury serves technology startups and venture-backed companies needing scalable financial infrastructure.
Making Your Decision
The right banking platform depends on whether your business needs operational visibility or growth infrastructure. Relay excels at cash flow management through account separation. Mercury excels at scaling operations through technical capabilities.
Test both platforms during trial periods to see which workflow fits your team. If systematic cash flow management would improve your daily operations, sign up for Relay to set up purpose-built accounts in minutes and see how separating your cash changes the way you run your business.
Disclosures
1Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. 2The Relay Visa® Debit Card is issued by Thread Bank, member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa debit cards are accepted.
3Your deposits qualify for up to $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions on the sweep program. Pass-through insurance coverage is subject to conditions.
