If you sell on Shopify, Etsy, Amazon, eBay, or your own Stripe checkout, Novo is a strong fit when you want direct payout connections, $0 monthly fees, and separate buckets for sales tax.

Novo is a financial technology company, not a bank; banking services are provided by Novo's partner bank, Middlesex Federal Savings, F.A., Member FDIC. Novo is built for small and mid-sized online sellers who run on Shopify, Stripe, Square, PayPal, Amazon, or Etsy. One tradeoff to name up front: Novo does not accept cash deposits, so it fits online-first sellers, not cash-heavy retail. If you sell at pop-ups, craft fairs, or a physical storefront where customers hand you twenties, pair Novo with a branch-based account or pick a traditional bank that accepts cash deposits.

For online-first sellers who do not take cash, the decision comes down to three questions: how fast payouts hit your account, which sales platforms connect directly, and how much the account costs to run. The more useful comparison for most online sellers is Novo versus a traditional business checking account, because monthly fees, software integrations, cash-deposit access, and wire-transfer needs are the real decision points.

What should ecommerce sellers look for in a business bank?

Online sellers have a different problem from a typical service business. Money lands from four or five different places (Shopify Payments, Stripe, PayPal, Amazon, wholesale invoices), payouts arrive on different schedules, and you owe sales tax in states you've never visited. Your bank account has to receive payouts from multiple platforms, show fees clearly, and reduce manual bookkeeping.

Key criteria for online sellers:

• Native platform integrations. If your business banking platform connects to Shopify, Stripe, Square, and PayPal directly, payouts and processor fees reconcile on their own. If it doesn't, you're exporting CSVs every month.
• Payout timing. Stripe payout timing varies by account and risk review, and new accounts can face an initial waiting period before funds become available.

Faster payout options matter when you're restocking a hot SKU.

• No monthly fees or minimums. Retail and online retail margins are often thin, so fixed monthly fees matter more for smaller sellers.

• Invoicing for wholesale and B2B. Even direct-to-consumer brands eventually sell to a boutique or fulfill a custom order, and built-in invoicing beats spinning up a separate tool.
• A way to set aside sales tax.

You need a system that quarantines that money before you spend it.

• An honest take on cash. If you sometimes sell in person, a fintech account alone won't cover you. Pair it with a credit union account or pick a bank that takes cash deposits.

How does Novo work for online sellers?

Novo offers a business checking account, provided by Middlesex Federal Savings, F.A., Member FDIC, designed around the software stack online sellers already use.

Fees and access. Novo has no monthly fees, no minimum balance, free incoming wires, and free ACH transfers.

Integrations. Novo connects directly to Shopify, Stripe, Square, PayPal, QuickBooks, and Xero. Payouts land in your Novo account, processor fees appear as line items, and your accounting software pulls everything in without manual reconciliation.

Faster Stripe payouts. Novo offers faster Stripe payouts, typically 1–2 days versus the standard Stripe payout schedule.

For a Shopify or direct-to-consumer store running Stripe, that can mean restocking earlier in the week.

Novo Reserves. Reserves let you split your balance into named buckets, such as "Sales Tax," "Q3 Estimated Taxes," "Inventory Restock," and "Payroll," without opening separate accounts. When a payout lands, you can earmark a percentage to the sales tax bucket so you don't accidentally spend it. Novo Reserves is not a separate account. Novo Reserves is a budgeting feature within the Novo checking account. All funds within Reserves remain a part of the overall balance of the Novo checking account. If you want to see how this bucketing approach works in detail, our guide to business sub-accounts walks through it.

Invoicing. Built into the dashboard. You can send an invoice for a wholesale order or custom build, accept ACH or card payment, and receive the money in the same account as your Shopify payouts.

Tradeoffs: Novo does not accept cash deposits. Novo does not pay interest on checking balances. Deposits are insured for up to $250,000 through Novo's partner bank, Middlesex Federal Savings, Member FDIC. If your business regularly holds more than that, ask a traditional bank or treasury provider how it handles balances above standard FDIC limits.

How does Novo compare to a traditional business checking account?

The honest comparison for most online sellers is Novo versus the business checking account at the big bank where you already have a personal account. The comparison depends on monthly fees, minimum-balance rules, software integrations, cash-deposit access, and wire-transfer needs.

| What you care about | Novo | Traditional big-bank business checking | |---|---|---| | Monthly fee | $0 | Monthly maintenance fee, often waivable with a minimum balance | | Minimum balance | None | Minimum balance may be required to waive the fee | | Shopify / Stripe / Square / PayPal integration | Native, inside the dashboard | Usually none; you reconcile manually | | Stripe payout speed | 1–2 days | Standard Stripe schedule | | Built-in invoicing | Included | Separate product, often a paid add-on | | Incoming wires | Free | Incoming wire fees may apply | | Cash deposits | Not accepted | Accepted at branches | | FDIC insurance | $250,000 via Middlesex Federal Savings, Member FDIC | $250,000 per depositor, per bank | | International supplier payments | Via Wise integration | Outgoing international wire fees may apply |

For online-first sellers, Novo charges $0 monthly maintenance fees, connects directly to common ecommerce tools, and offers faster Stripe payouts. If you take cash regularly or wire six figures to overseas factories every month, a traditional bank still has a role.

When should ecommerce sellers use a traditional bank?

Evaluate your business model before choosing:

• You take cash at pop-ups, markets, or a physical storefront. Novo does not accept cash deposits. You'd need a branch-based account, or pair Novo with a credit union account for the cash side.
• You wire large sums to overseas factories weekly. Novo handles international supplier payments through its Wise integration, which works fine for occasional vendor payments. If international wires are a core part of your operation, a bank with native outgoing international wires may be simpler.
• You hold more than $250,000 in working capital. Novo's FDIC coverage is the standard $250,000 through Middlesex Federal Savings, Member FDIC. A traditional bank's treasury account is the right tool above that line.
• You need granular role-based permissions across many cardholders. If your ecommerce business needs native international wires, sweep-network coverage, or complex finance-team controls, evaluate those needs separately from day-to-day business checking.

Who is Novo best for?

• Solo founders and freelancers selling online.
• Shopify, Etsy, Amazon, and eBay sellers who want payouts and expenses in the same place.
• Small ecommerce businesses that don't take cash and don't need multi-user team controls.
• Sellers upgrading from a personal checking account to something built for business.

How do you open a Novo account as an ecommerce seller?

You can apply online. Have your business and identity documents ready before you start.

What you'll need:

• Your EIN, or your SSN if you're a sole proprietor without an EIN.
• Business formation documents if you have an LLC or corporation (articles of organization or incorporation).
• A government-issued photo ID.
• Your business address and a short description of what you sell.

For a complete walkthrough of what to gather, see our business checking account requirements checklist.

What to do in week one after approval:

1. Connect your sales platforms. From inside the Novo dashboard, link Shopify, Stripe, Square, or PayPal. Update your payout destination on each platform to your new Novo account and routing numbers.
2. Connect your accounting software. Link QuickBooks or Xero so transactions sync automatically.
3. Set up Reserves before your first payout lands. Create at least two: "Sales Tax" and "Quarterly Estimated Taxes." If you sell physical goods, add "Inventory Restock." Decide what percentage of each payout you'll earmark for each bucket.
4. Order your debit card and update subscriptions. Move ad spend (Meta, Google), software subscriptions (Shopify, Klaviyo, your 3PL), and shipping (ShipStation, Shippo) onto the new card.
5. Send a test invoice. If you do any wholesale or custom work, send a $1 test invoice to yourself to confirm the flow. You can start from our invoice template for ecommerce businesses.

How should ecommerce sellers set aside money for sales tax?

Most online sellers under-reserve for sales tax because the obligations are spread across states. Here's a plain-text template you can drop into an LLM to generate a working spreadsheet sized to your numbers:

You are helping me build a sales tax reserve tracker for my ecommerce business.

INPUTS:
- States where I have sales tax nexus: [list them]
- Average monthly revenue per state: [fill in]
- Sales tax rate per state: [fill in]
- Payment platforms I use: Shopify, Stripe, PayPal, [others]
- My Novo Reserves bucket name: "Sales Tax"

OUTPUT:
Build a spreadsheet with columns for: month, state, gross sales, taxable sales,
sales tax collected, cumulative balance owed, filing due date, and filing status.
Include a summary tab that totals what I should have sitting in my Novo
"Sales Tax" Reserve at the end of each month. Add a formula that calculates the
percentage of total revenue I should automatically route into Reserves to
stay covered.

Paste that into ChatGPT or Claude and ask: "Generate this as a Google Sheet I can copy, with formulas filled in and a sample row populated." Use the output as a draft tracker, then check the formulas, state filing dates, and tax rates before relying on it.

Frequently asked questions

Does Novo integrate with Shopify and Stripe?

Yes. Novo integrates directly with both Shopify and Stripe from inside the dashboard, plus Square, PayPal, QuickBooks, and Xero. Stripe payouts to Novo typically arrive in 1–2 days rather than on the standard Stripe schedule.

Can I deposit cash into Novo?

No. Novo does not accept cash deposits. If you take cash at pop-ups, markets, or a physical storefront, you'll need a branch-based account for that portion of your revenue. Novo fits sellers whose payments come through Shopify, Stripe, PayPal, Amazon, Etsy, or similar online platforms.

Does Novo charge monthly fees?

No. Novo has no monthly fees and no minimum balance. Incoming wires and ACH transfers are also free.

Can I pay international suppliers from Novo?

Yes, through the Wise integration inside Novo. Novo does not offer native outgoing international wires; international supplier payments route through Wise at Wise's exchange rate. For occasional overseas vendor payments this is straightforward. If international wires are a daily operation, evaluate whether you need a bank with native outgoing wires.

Is Novo FDIC insured?

Yes. Deposits are insured for up to $250,000 through Novo's partner bank, Middlesex Federal Savings, Member FDIC.

Does Novo work for Amazon and Etsy sellers?

Yes. Amazon and Etsy payouts deposit via ACH to the routing and account numbers you provide, so you can point them at your Novo account the same way you would any bank. Etsy and Amazon don't offer the same one-click integration Shopify and Stripe do, but the payouts land normally and reconcile through QuickBooks or Xero.

How does Novo compare to using PayPal as a business bank account?

PayPal is not a bank, and PayPal balances are not automatically FDIC insured by default; some pass-through coverage may apply only when funds are placed at a partner bank under PayPal's program terms.

Most sellers use Novo as the destination account for PayPal payouts so the money lands somewhere insured, integrated with their accounting, and accessible by debit card.