Oxygen is an online bank (or neobank) solely specialized in mobile banking services, offering both a professional bank account via the Oxygen app. With no monthly fees and unlimited transactions, the Oxygen Business Account is ideal for small business owners looking for an affordable way to separate their personal and business finances and manage them on the go.
In addition, Oxygen is distinguished by the fact that it offers LLC creation services nationwide through a third party, allowing you to form an LLC from the app, then open your business account.
Oxygen Trading is ideal for small business owners who:
You want a free business checking account with no minimum balance requirements.
Prefers to manage most of his finances digitally.
You do not need access for multiple authorized users on their account.
Deposit less than $ 10,000 in cash on a monthly basis.
You have not yet formed a limited liability company or LLC and are considering doing so.
Advantages and disadvantages
No monthly fees, no minimum opening deposit, no minimum balance requirement.
Unlimited transactions at no cost.
Free access to ATMs via the Allpoint network; possibility of depositing cash via the Green Dot network.
Get cash back using the Oxygen Business Debit Card.
Mobile tools, including temporary or reusable virtual cards.
Possibility to create an LLC via the Oxygen application before creating a professional account.
Fee of $ 3 per withdrawal for use of an off-network ATM (plus ATM owner’s fee).
Service charge of up to $ 4.95 for each cash deposit.
Cannot send national or international threads; cannot receive international threads.
Oxygen activity at a glance
Minimum opening deposit requirement:
Unlimited transactions at no cost
How the Oxygen activity works
Oxygen Business is a fully mobile bank account. The Oxygen mobile app is available for iOS and Android devices and is compatible with smartphones and tablets.
As Oxygen is not actually a bank, its banking services are provided by Bancorp Bank and deposits are insured up to $ 250,000 by the Federal Deposit Insurance Corp.
To open a professional Oxygen account, you will need to download the mobile app and create a login by providing an email address and password. You will complete your application by providing basic information about you and your business, including your Social Security number, date of birth, and viable U.S. mailing address. You may also be asked to provide a copy of your driver’s license and commercial identification documents.
It can take up to three to five weeks for your application to be approved. Once approved, you will be able to use the Oxygen app to fund your account, generate virtual cards, view statements, deposit checks and more.
You will also receive a physical Oxygen Visa® Business debit card by mail to use with the account. This card must be activated before it can be used.
It is important to note that if you are interested in LLC training services, Oxygen recommends that you sign up for the personal account first instead of the business account. After requesting and approving the personal account, you will be able to use the Oxygen app to form an LLC through CorpNet. Fees vary depending on your state and the LLC formation services you choose.
Where the Oxygen activity stands out
Free: The Oxygen Business Account has no monthly fees, no minimum opening deposit requirement, and no minimum balance requirement. In addition, this account offers unlimited transactions at no charge, which include ACH transfers, direct deposits, inbound domestic wire transfers, and mobile check deposits. While the Oxygen Business Account does not offer paper checks, it does offer a free bill payment service that allows you to send postal checks to individuals or businesses as long as they are located in the United States.
ATM access: You can use the Oxygen business debit card to withdraw cash free of charge at over 55,000 Allpoint ATMs around the world. Although you cannot deposit cash at these ATMs, you can visit over 90,000 participating Green Dot points in the United States to deposit money (service charge of up to $ 4.95 per deposit), with a maximum cash deposit limit of $ 10,000 per month. On the other hand, some online-only business bank accounts cannot accept cash deposits at all.
Cash Back Program: The Oxygen Business Account includes a rewards program that allows you to earn money for your spending with your Visa Business debit card. You can select which cash back offers are displayed on the mobile app’s cash back page, make purchases at participating retailers, and track the rewards earned. Once you reach the $ 10 winning threshold, you can cash out your rewards and they will be immediately deposited into your Oxygen account.
While cash rewards are subject to change, at the time of writing this article rewards include:
5% cash back on carpooling services.
5% Cash Back on Shipping (USPS, FedEx, and UPS).
$ 1 cash back on coffee purchases.
Mobile tools: In the mobile app, the Oxygen business account includes check deposit, cash flow projections, bill payments, account statements, and cash back. Plus, you have the ability to download and tag deductible expenses, monitor transactions, and integrate the app with your accounting software.
Additionally, you can use the Oxygen app to create temporary or reusable virtual cards. These cards are linked to your account and can be used to make purchases online or over the phone without showing your physical business debit card.
You can generate up to 10 virtual cards at a time, with a limit of $ 1000 on each card. You can also set monthly spend and authorized merchants, as well as freeze or cancel your virtual cards using the mobile app.
Where Oxygen Business Fails
Mobile only: Unlike other online-only and non-banking banks, which typically offer a web-based and app-based banking experience, the Oxygen business account is mobile-exclusive. And, while nearly 70% of business owners surveyed said they would prefer to open an online deposit account, a majority still did so in person, according to a 2019 study by BAI, a research organization. and nonprofit training for business owners. Thus, an exclusively mobile experience can be a barrier to entry for some small business owners.
Off-network ATM fees: If you are using an off-network ATM to withdraw money, you will need to pay a $ 3 Oxygen fee, plus any fees the ATM provider may charge. Plus, these fees increase if you use an international ATM: you’ll pay $ 5 plus a 1% international transaction fee on top of the fees charged by the ATM provider. You will however receive a refund on the first international cash withdrawal fee per calendar month ($ 5), but the international transaction fee will still apply.
Overall, these types of fees are not uncommon for physical bank commercial checking accounts, but you can find competitors online that don’t charge off-grid fees, as well as those that offer fee refunds. other ATM providers charge.
No multi-user accounts: The Oxygen business account can only accommodate one authorized user, which may not be sufficient for multi-owner or larger businesses. While you can use the mobile app to create virtual cards and manage spending on those cards, these are limited account privileges.
In comparison, other business accounts may offer the ability to add multiple account users, customize access, and order business debit cards for other owners and employees.
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