Business banking security feature can help protect your money and account information while giving you control over who can access business funds. When comparing accounts, look for tools such as multifactor authentication, transaction alerts, user permissions, card controls, and fraud monitoring.
This guide walks through standard and advanced security features used in business checking, and why each one matters.
What you need to know
- Always make sure your business checking account is FDIC insured before opening. Some accounts may even offer additional FDIC coverage using a sweep network.
- Advanced security features like multi-factor authentication (MFA) and data encryption can help keep your account safe.
- Consider that a fintech or online banking platform may fit your needs even better than a traditional bank, especially if you don’t require a physical branch.
1. FDIC insurance
The collapse of Silicon Valley Bank reminded business owners of the importance of FDIC insurance. The Federal Deposit Insurance Corporation was established to offer protections to bank depositors. The limit of that protection is $250,000 per depositor, per bank. Your bank must be an FDIC member for you to receive that protection.
Businesses with more than $250,000 in deposits can do business with multiple banks or find one bank that uses a sweep network of other banks to move money that’s over the FDIC-insured limit. Sweep networks can offer FDIC insurance up into the millions, which is ideal for growing businesses.
Did you know?
While Bluevine is not a bank, Bluevine Business Checking accounts are FDIC insured up to $3 million per depositor through Coastal Community Bank, Member FDIC and their sweeps program banks by multiplying the standard $250,000 FDIC coverage across multiple banks.
Read more about why a fintech like Bluevine could be a better fit for your business than a traditional bank.
2. Data encryption
Data encryption means that your account data and transactions are encoded when business is conducted between banks and payment processors. You may be surprised to learn that newer bank accounts with online-only operations often have higher encryption standards than more traditional brick-and-mortar banks and credit unions.
3. Multi-factor authentication (MFA)
The ability to log in to your business checking account by entering a username and password on the home screen may seem convenient. In the modern business world, it’s a major security concern that hackers feast on. More progressive banks use different screens for each piece of data and have added multi-factor authentication layer to further secure your account access.
The most common additional factor for account login is a request for a code sent by the bank to the account holder by text or email. Mobile technology also allows for biometric authentication with a thumb print or facial recognition. Password security best practices recommend that you use multi-factor authentication, even if your bank makes it optional.
4. Fraud detection and prevention
Security features like data encryption and multi-factor authentication are good roadblocks to fend off identity thieves and hackers. Unfortunately, those unscrupulous individuals sometimes get through those firewalls. Your bank should be able to detect fraud immediately and step in to prevent it from happening again—the responsibility for that should lie with them.
Look for a zero-liability policy when you open a new business checking account or business credit card. Banks are insured, so they should take on the burden of any losses caused by a breach in their account security. Zero-liability policies protect the account holder and can ensure your business isn’t affected by fraudulent charges. Look for the following features:
Account monitoring
If you’re doing business in California and a charge pops up at an appliance store across the country, that’s likely a fraudulent transaction. Banks with automated account monitoring will flag that transaction and contact you to verify its legitimacy. These flags go up any time a transaction doesn’t seem to match your regular spending habits.
Suspicious activity alerts
You might not always be available to answer your phone when your bank’s account monitoring reveals suspicious activity. Look for banks that enhance that service with SMS text messages or emails that you’re more likely to see. Addressing and preventing fraud requires immediate action by both the bank and the account holder. Suspicious activity alerts can make that much easier.
5. Payment approvals and dual control
Payment approvals and dual control add an extra layer of oversight to business banking by separating the person who initiates a payment from the person who approves it. This can help prevent unauthorized payments, reduce the risk of errors, and create a clearer record of who handled each transaction. Dual control can be especially useful when employees or multiple decision-makers have access to company funds, allowing routine payments to move efficiently without giving any one person unchecked control.
6. Team access controls
Team access controls let a business owner decide what different employees or users can see and do within a business bank account. Instead of giving every team member full access, you may be able to assign permissions based on their responsibilities, such as viewing transactions, making payments, or managing cards. These controls improve security by limiting unnecessary access while making account management more efficient. They also make it easier to remove or change access when an employee’s role changes.
See how Bluevine empowers small businesses to bank with confidence.
Frequently asked questions
The most important business banking security features include multifactor authentication, transaction alerts, user permissions, debit-card controls, fraud monitoring, encryption, and payment controls. These features protect both account access and the money moving through your business. When comparing providers, look for controls that can be customized by account, employee, card, or transaction type rather than relying on one security setting for everyone.
A business checking account can help prevent unauthorized transactions by giving you control over who can access funds and which payments can be processed. Useful features include ACH blocks, payee controls, transaction alerts, card-lock tools, spending limits, and user permissions.
Give employees only the access they need to perform their jobs, and avoid sharing account credentials. Individual logins, separate debit cards, user permissions, spending limits, and transaction alerts can make employee activity easier to monitor and control. A banking platform with granular permissions can be particularly useful as a small business grows and more employees become involved in financial operations.
FDIC insurance protects eligible deposits if an FDIC-insured bank fails; it is not the same as fraud protection or cybersecurity. The standard FDIC insurance limit is $250,000 per depositor, per insured bank, per ownership category. Bluevine Business Checking customers receive up to $3 million in FDIC insurance through Coastal Community Bank, Member FDIC, and its program banks.
For an online business bank account, look for layered protections covering both login access and financial activity. Key features include multifactor authentication, real-time alerts, encryption, fraud monitoring, user permissions, debit-card controls, and ACH or payment controls. It’s also important to understand how the provider handles suspicious activity and account recovery. Bluevine combines digital account management with payment controls and ACH fraud protections, which can help businesses manage security from the same dashboard.
