The CardOneBanking business account for small businesses is a ‘basic’ business bank account for UK residents with a UK registered business that has been specifically designed for those who may not be able to obtain or want a standard high street bank business account.
Many individuals and companies are not be able to open a high street business current account because of a previous bad credit history such as a poor payment history, defaults, county court judgments (CCJs), bankruptcy and IVAs (Individual Voluntary Arrangements). Even of you wish to open a business account for a limited company (which is a separate legal entity), banks will still credit check the directors of the company. Many people just want a simple checking account to pay funds in and out of and do not need an overdraft facility or any extras. Also many people do not want to go through the often unnecessary time consuming process of producing a business plan for the bank only to be ultimately refused an account.
You may not have heard of CardOneBanking. They are not strictly a bank but are classed as an Authorised Payment Institution regulated by the FSA with their funds held with Barclays Bank. As well as providing a managed personal UK bank account, which you may have seen, this company also offers a business version of the account complete with business prepaid debit Mastercard.
With this managed (rather than basic) account, which they call the ‘Jam-Jar’ current account, funds are paid into the ‘billing account’ and once enough funds have been set aside for regular bills any remaining funds can be transferred to the corporate debit Mastercard account attached to the billing account and these funds are available for normal everyday spending (this can be done automatically). This ensures there should always be enough money to pay bills without going overdrawn.
Extra funds can be added to the ‘billing account’ at any time and funds can also be transferred from the prepaid Mastercard part of the overall account back to the billing part of the account at any time (£5 fee applies).
Anyone who is a UK resident over 18 can apply for this business account (subject to identity and residency checks). Individuals with an adverse credit history and even undischarged bankrupts and those in an IVA can open an account. The application fee is £55 (extra £5 for each additional card required). There is a minimum monthly management fee of £12.50. Maximum level of funds in billing account is £250K.
No interest is paid on billing or card account balances.
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What CardOneBanking Business Banking offers:
- Corporate prepaid Mastercard debit card. With this prepaid card you can withdraw cash at Mastercard cash machines worldwide and pay for goods and services online or by phone. Maximum card balance is £5000. Maximum amount of each transfer to card is £1250. Funds can be loaded automatically onto the prepaid Mastercard from the ‘billing’ section of the account.
- Guaranteed acceptance (subject to identity and residency checks).
- Undischarged bankrupts or those with an IVA (Individual Voluntary Arrangement) are accepted. There are no credit checks. Identification and address checks will be carried out. If they cannot verify identity / residency details they may ask for original ID documents as proof.
- Available to sole traders, partnerships or limited companies with a turnover of no more than £2 million per year.
- Direct Debits and Standing Orders available.
- Deposit cash and cheques for free at any branch of Barclays Bank using the bank GIRO slip (max. £500 cash per week).
- Deposit cash for free at any UK Post Office using the bank GIRO slip (max. £500 per week).
- Inward electronic payments (BACS, Faster Payments) allowed.
- Outward electronic payments (bank transfers) allowed.
- Online, automated telephone and mobile text banking.
- Online statements.
- Free text alerts for Standing Order and Direct Debit bill payments & cleared deposits into billing account.
- Account managers available.
- Withdraw up to £450 in cash per day using the prepaid Mastercard debit card at any cash machine in the UK and abroad displaying the Mastercard symbol. Withdrawals are subject to sufficient funds being available. Some ATMs may charge a fee.
- There are no fees for refused Direct Debits, Standing Orders or other outward payments. If a Direct Debit, Standing Order or other outward payment cannot be made because of insufficient funds the bank will inform the account holder by text so funds can be added and if they do nothing then the payment will been halted.
- £55 application fee (refundable should you be refused an account for any reason).
- Minimum £12.50 monthly charge.
- No overdraft facility.
- No cheque book provided.
- Some charges do apply.
- Cannot use prepaid Mastercard at LINK ATMs.
Some of the fees for this CardOneBanking managed Business Account include:
(see their Terms and Conditions for the full list)
Standing Orders and Direct Debits £0.30 per item.
UK point of sale transaction Free.
Non-UK point of sale transaction Free, but please note foreign exchange fee of 2.75% of the transaction value per purchase transaction.
£1.50 for ATM withdrawals within the UK.
£3.00 plus 2.75% of the transaction value for ATM withdrawals outside the UK.
£5.00 for a counter cash advance within the UK.
£5.00 for a counter cash advance outside the UK.
Transfer from the corporate prepaid Mastercard account to the billing account £5.00.
Returned cheque fee £5.00.
CHAPS outbound payment to nominated account £30.00.
Printed current (billing) account statement / corporate prepaid Mastercard statement up to 3 months £5.00.
Card replacement fee £3.95.
Account closure £10.00.
Re-activation fee £5.00.