When your financial situation isn’t the best, it can sometimes be hard to get back up on your feet again. Whether for personal or business banking, a poor credit rating makes certain products off-limits and other incredibly expensive. So, if you’ve had problems with borrowing in the best and now have a bad credit score, CardOneMoney could be an option worth checking out. We take a look at everything you need to know about the business bank accounts and services they offer.
Quick look – pros & cons
Let’s start by taking a quick overview of what we liked and didn’t like about the service. If you’re short of time, this gives you a top-level summary of the good and bad of CardOneMoney:
No credit check required to set up an account.
Online, phone, and app-based account that gives you 24/7 access to your money.
Free direct debits and text alerts about your money.
UK-based call centre for customer support.
Can add up to four additional corporate Mastercards.
Features are somewhat limited compared to competitors.
You’ll also need to pay at least £12.50 per month to use the account.
There are several other fees for things like cash withdrawals and new cards.
As you can see, it’s a bit of a mixed bag. Although the CardOneMoney account gives some flexibility, there are quite a few costs associated with it.
What is CardOneMoney?
CardOneMoney (previously known as CardOneBanking) is an online business account aimed at those wanting to avoid a credit check. It offers a ‘jam jar’ style business account, through which you can pay money in, authorise direct debits, and use a prepaid card. It’s a fairly no-nonsense approach to business banking, but without many of the bells and whistles, other providers offer.
The company behind the account is an independent, FCA Authorised Payment Institution (API). They’ve been providing accounts and payment services since 2007, and offer both personal and business accounts. However, they’re not a bank, and they can’t use customer money. Their goal is that anyone should be able to gain business finance without being pre-judged.
How does CardOneMoney work?
The CardOneMoney business account is primarily app-based, allowing you to control all of your money through your smartphone. However, there are also options to manage your account online and over the phone. You can also make payments into your account, including cash and cheques, using Barclays bank branches and the Post Office.
On their website, CardOneMoney claims that you can open an account within four hours. A 10-minute application form is the first thing you need to complete, answering a variety of questions about you and your business. It’s worth noting that, depending on your application, they may need to visit your business premises as part of their underwriting process.
Once open, you’ll be able to check your balance, view statements, and pay your bills using the CardOneMoney app.
To open your account, you’ll need to be over the age of 18, have a valid form of ID and a registered business address, and provide details of your business registration. Once your application and documents are verified, no credit check is required, and you’ll most likely have your account opened that same day.
Once open, you’ll be able to check your balance, view statements, and pay your bills using the CardOneMoney app. You’ll also be able to allocate funds to spend on your prepaid Mastercard.
What features does CardOneMoney have?
It’s a bit of a mixed bag when it comes to the features that come with a CardOneMoney business account. Although it has many nice touches, there are several notable missing features.
Here are some of the elements of the CardOneMoney account we like the most:
A variety of access options. Although the app takes centre stage, if you’re not so tech-savvy, there are other options. An automated telephone service, online account, and SMS service make it easy to keep on top of your finances. Unlike with many similar accounts, you can also pay in cash and cheques using the Post Office.
Additional cards. You can add up to four additional prepaid corporate Mastercards to your account. These are ideal for things like expenses accounts for other employees. You get the same level of control and insight into these extra cards too.
Export function. If you use accounting software, you can easily export your bank statements using the CardOneMoney app.
UK-based call centre. When it comes to challenger banks, it’s often hard to get another person on the end of the phone if you’re having problems. With CardOneMoney, you have access to a UK-based call centre, open six days a week.
Cashback rewards. When you spend with your Mastercard, you can earn up to 8% cashback with over 35 high street stores.
International transfers. You can make and receive payments with your CardOneMoney account with the IBAN and SWIFT information you’re provided.
As you can see, many of these are useful for your business banking, particularly when you can open an account within a few hours.
What are the fees for using CardOneMoney?
It’s with the fees that CardOneMoney becomes a slightly less appealing prospect. It costs £55 to make an application, set up an account and get your first card. However, this is refunded if you’re not accepted. There are plenty of ongoing fees for using the account and accessing some of the extra features.
Below, we’ve outlined some of the main fees you’ll encounter when using the CardOneMoney business account:
Monthly fee. It costs £12.50 each month just to access the current account. This is paid in advance.
Additional cards. For each extra corporate card, it costs £5 per month. So, if you have four additional cards, it’ll cost an extra £20 each month.
Withdrawals. Cash withdrawals at UK ATMs cost £1.50 each. For outside the UK, it costs £3.00 plus 2.75% of the transaction value.
Transaction fees. Outside of the UK, it costs 2.75% of the transaction value each time you make a purchase.
Advances. Counter cash advances cost £5.00 each.
Balance enquiry. It costs 15p each time you make an SMS balance enquiry.
These fees can soon add up, particularly if you’re dealing with cash and making transactions abroad. What’s more, there are also restrictions about how much you can have on your card. For example, you have to load at least £10 but can only hold a maximum of £5,000 on your card.
Who is CardOneMoney for?
CardOneMoney is fairly clear about who this business account is for. Those who have had financial difficulties in the past and may struggle to open an account are the primary targets. The fact you don’t need a credit check and can open an account in a matter of hours is definitely appealing to some.
Aside from that, it’s hard to see other businesses or sole traders making use of this account. The monthly fees are relatively high, and there are some features that are lacking. However, if the fee doesn’t bother you (and you don’t make withdrawals or transactions overseas), then it’s a perfectly functional current account. There just aren’t any of the extra flourishes we’re used to seeing.
What are the drawbacks of using CardOneMoney?
Perhaps the biggest downside of this business account is the fees for using it. In other reviews, we’ve seen much lower fees for business accounts. Soldo, for example, has a free basic service (although usage fees outside the UK are incredibly high). Similarly, Revolut Business has a tiered service that offers a lot more in terms of functionality.
Although some of CardOneMoney’s features are useful, there is a limit to what you get from it. For example, there is no form of business overdraft or lending facility. Of course, CardOneMoney isn’t a bank and so can’t offer these, but it can be a drawback for businesses just starting out.
You won’t earn interest on your money when it’s in a CardOneMoney account, and you won’t be able to access a cheque book.
How safe is CardOneMoney?
One of the questions often asked of CardOneMoney is whether they’re protected by the FSCS. Because they’re a bank, they’re not covered under the scheme. However, this also means that the money you deposit is held in a separate bank. So, if anything happens to CardOneMoney, your funds are safe.
The app and website also seem to be secure, with all the necessary protections given to your data and account. Similarly, their Direct Debits have enhanced security, ensuring your money goes where it’s supposed to.
Ultimately, the pros and cons of the CardOneMoney business account are fairly balanced. We really like how easy it is to get set up with an account. And, for those who are getting back on the feet financially, it could be a lifesaver.
However, the fee structure seems pretty pricey, especially considering some of the features you don’t get. For most sole traders or small businesses, there are plenty of rival accounts that offer more and cost less.