If you sell vintage on eBay, Etsy, Poshmark, Depop, or Shopify, your bank has one job: catch marketplace payouts cleanly, keep personal and business money apart, and give you the records you'll need when 1099-Ks arrive in January. Most traditional business checking accounts were built for storefronts that take cash and swipe cards at a counter. Resale is different. The money arrives as ACH from a handful of platforms, margins on a $28 flannel or a $60 estate-lot dish set are thin, and the IRS reporting threshold that decides who gets a 1099-K has come down sharply.

Novo can work well for online-first resellers, but it is not a fit for sellers who need cash deposits.

What does a vintage or resale business need from a bank?

Five things matter more than anything else on a reseller's account statement:

• Fast ACH payouts from every marketplace into one account. eBay, Etsy, Poshmark, Depop, Shopify, Mercari, and Whatnot all send money by ACH to a US routing and account number. You want one destination so your bookkeeping isn't a scavenger hunt.
• A clean split between personal and business money. If your Poshmark payouts land in the same checking account as your rent and your DoorDash orders, reconciling a 1099-K at tax time turns into weeks of highlighter work. This is the core case for business vs personal checking.
• Low or no monthly fees. When your margin on a thrifted Levi's jacket is $18, a $15 monthly maintenance fee is one flip's profit gone.
• A way to hold back sales tax and sourcing money. Payouts come in gross. Before you spend, you want a mechanism to earmark the sales tax you collected off-platform and the cash you need for next weekend's estate sale.
• Integrations with the tools you already use. Shopify for your own storefront, Stripe for card payments at pop-ups, QuickBooks or Xero for the books.

An account that checks those five boxes can reduce the time you spend sorting payouts, expenses, and tax records.

Can I use Novo for eBay, Etsy, Poshmark, Depop, and Shopify payouts?

Yes. Every Novo business checking account includes a US ACH routing and account number that sellers can enter in marketplace payout settings. The marketplace treats the Novo account like any other US bank account.

Marketplace payout timing varies by platform:

• eBay pays out on a schedule you choose, such as daily, weekly, or a fixed day of the week, after buyer payment clears.
• Etsy deposits are set by you: daily, weekly, biweekly, or monthly, with a minimum available balance requirement.
• Poshmark holds funds as "redeemable balance" until you tap "redeem," then sends ACH direct deposit.
• Depop pays through its payment processor to your linked bank account, typically within a few business days.
• Shopify Payments pays on a rolling schedule based on your country and payout settings.

Standard ACH credits generally settle within 1–2 business days under NACHA operating rules, with same-day ACH available for eligible transactions.

For direct sales outside a marketplace, Novo Invoices can help you collect payment without mixing business income into a personal account. That covers a DM sale on Instagram, a booth day at a vintage pop-up, or a consignment settlement to another seller.

Why is Novo a good fit for online-first resellers?

Novo works well for small businesses that receive payouts by ACH, pay by card, and send invoices — which fits many online reseller workflows.

Novo business checking accounts have no monthly maintenance fees and no minimum balance requirements, so a slow sales month doesn't cost anything to keep the account open.

The specifics that matter for resale:

• Direct integrations with Shopify, Stripe, QuickBooks, and Xero. Connect Shopify and see your storefront payouts alongside your marketplace deposits. Connect QuickBooks or Xero, and your Novo transactions sync automatically after you categorize them.
• Novo Reserves. Novo Reserves lets business owners set aside funds within their Novo business checking account for expenses like sales tax and inventory sourcing before spending the rest of a payout. Reserves is a budgeting feature inside the same checking balance, not a separate account, and works similarly to using business sub-accounts to bucket money for taxes and payroll. When a $612 Etsy payout hits, you can allocate $85 to a "Sourcing" Reserve and $40 to a "Sales Tax" Reserve in a few taps, and the unreserved balance is what's available to spend.

• ACH transfers with no per-transfer fee. Paying a consignor, a picker who sources for you, a photographer, or a repair contractor doesn't add a per-transfer ACH cost.

• Novo Debit Mastercard. Use the Novo Debit Mastercard to buy inventory at estate sales, pay thrift stores that accept cards, purchase eBay shipping labels, and cover Etsy fees. Each transaction posts to the business account instead of your personal card.

• Deposits held at an FDIC-insured bank.

Standard FDIC deposit insurance covers up to $250,000 per depositor, per insured bank, per ownership category.

Novo customer deposits are held at Middlesex Federal Savings, F.A., an FDIC-insured institution. For a plain-English walkthrough of how coverage works on a business account, see our guide to FDIC insurance for a business account.

Does Novo accept cash deposits?

No. Novo does not accept cash deposits. It's the most important tradeoff to know before you open an account.

If your sourcing is cash-heavy — you buy estate lots for $400 in twenties, you win auction pallets in cash, or you pay flea-market vendors from a folded stack — Novo alone won't cover that side of the workflow. There are workarounds resellers use:

• Deposit cash into a personal account at a brick-and-mortar bank, then send an ACH transfer to your Novo account as an owner contribution.
• If you maintain a separate bank that accepts mailed money orders, convert cash to a money order and deposit it there before transferring funds to Novo by ACH.
• Keep a small legacy business account at a local bank purely for cash deposits, and sweep the balance to Novo weekly.

Novo is the strongest fit for sellers whose inventory sourcing happens online or on card (StockX, online estate auctions, wholesale lots, Goodwill running card readers) and whose sales arrive as marketplace ACH payouts. If most of your sourcing money moves out as cash at swap meets, a hybrid setup makes more sense than trying to force Novo to do something it doesn't do.

How does Novo handle 1099-K reporting and reseller taxes?

Novo doesn't file your taxes, but the account is built so that when 1099-Ks arrive, reconciling them takes an afternoon instead of a weekend.

The 1099-K threshold has moved

More small sellers now receive Form 1099-K than in prior years because the IRS reporting threshold has decreased.

For tax year 2024, marketplaces such as eBay, Etsy, Poshmark, and Depop are required to issue Form 1099-K to sellers with more than $5,000 in gross payments, with the IRS phasing the threshold lower in subsequent tax years. For later tax years, check the IRS's current Form 1099-K guidance because the reporting threshold is scheduled to phase down toward the statutory $600 level. The gross amount on a 1099-K may include shipping, sales tax collected by the platform, and refunds, so it is not the same as profit.

Report on Schedule C, track cost of goods sold

Sole proprietors report reseller income on Schedule C of Form 1040 and pay self-employment tax on net earnings of $400 or more. If you formed an LLC taxed as a sole proprietorship, you still file Schedule C. Multi-member LLCs and S-corps file separate returns.

The number that matters is profit, not the gross on the 1099-K. Your cost of goods sold — including the $6 you paid for the flannel, auction lot invoices, shipping labels, poly mailers, and mileage to estate sales — comes off the top. Track every one of those against your Novo transactions and you're taxed on what you actually earned. Our guide to e-commerce business expenses and tax deductions walks through the categories most online resellers claim.

Sales tax: platforms handle most of it

Marketplace facilitator laws require many online platforms to collect and remit sales tax on behalf of third-party sellers in the large majority of US states that impose a sales tax. That reduces the sales tax work for most marketplace sellers, but off-platform sales may still create collection, remittance, or filing obligations depending on your states, nexus, and how the sale was made.

Where it still matters: off-platform sales. A DM sale, a private consignment, a booth at a flea market where you took Zelle. That sales tax may be yours to collect and remit. A Novo Reserve labeled "Sales Tax" lets you earmark collected sales tax within your Novo checking account balance until the state's filing deadline.

Sync to QuickBooks or Xero

Connect Novo to QuickBooks Online or Xero, so every transaction — an Etsy payout, a USPS shipping label, or a thrift-store card swipe — flows in with a memo. Categorize once, and at year-end you pull a P&L instead of rebuilding a year of receipts.

How do I open a Novo account for a resale business?

The application takes about ten minutes online.

What you need:

• Sole proprietor / single-member LLC without EIN: Your SSN, legal name, home address, date of birth, and a description of the business.
• LLC or corporation: Your EIN, formation documents (Articles of Organization or Articles of Incorporation), and an operating agreement or bylaws if you have them.
• DBA: Your DBA registration.

For a broader checklist across entity types, see business checking account requirements.

What happens after you apply:

1. Novo reviews the application. Application review timing varies by applicant.

1. You'll get your Novo routing and account number in the app.
2. Order the Novo Debit Mastercard.
3. Log into eBay Seller Hub, Etsy Shop Manager, Poshmark, Depop, and Shopify and paste the Novo routing and account number into each platform's payout settings.
4. Connect QuickBooks or Xero from the Novo dashboard.

That's the whole setup. New payouts land in Novo. Old payouts finish clearing to your previous bank; move that balance over with an ACH transfer when the last one settles.

How should a reseller reconcile monthly payouts?

Copy this into a spreadsheet and add formulas for monthly totals, net profit, estimated tax, and annual roll-ups.

RESELLER MONTHLY RECONCILIATION — [MONTH, YEAR]

INCOME (gross payouts received in Novo)
  eBay payouts                          $______
  Etsy payouts                          $______
  Poshmark redemptions                  $______
  Depop payouts                         $______
  Shopify Payments deposits             $______
  Off-platform sales (invoices/Zelle)   $______
  TOTAL GROSS INCOME                    $______

COST OF GOODS SOLD
  Inventory purchased (thrift, auctions, estate lots)  $______
  Shipping supplies (poly mailers, boxes, tape)        $______
  Postage / shipping labels                            $______
  Platform fees (eBay, Etsy, Poshmark, Depop)          $______
  Payment processing fees                              $______
  TOTAL COGS                            $______

OPERATING EXPENSES
  Mileage (miles × IRS rate)            $______
  Photography / props                   $______
  Storage / studio rent                 $______
  Software (accounting, listing tools)  $______
  TOTAL OPEX                            $______

NET PROFIT (Gross Income − COGS − OpEx)  $______

RESERVES TO SET ASIDE (consult your tax advisor for your own numbers)
  Sales tax on off-platform sales       $______
  Estimated federal + SE tax            $______
  Next sourcing run                     $______

U.S. Census Bureau data shows that nonemployer firms number in the tens of millions in the United States, and retail trade is one of the largest categories reported in the annual Nonemployer Statistics — the pool most solo online resellers fall into.

Frequently asked questions

Can I use Novo if I sell on eBay, Etsy, and Poshmark at the same time?

Yes. You paste the same Novo routing and account number into each marketplace's payout settings. All payouts land in one Novo account, which is exactly what you want for bookkeeping and 1099-K reconciliation.

Does Novo report my income to the IRS?

Novo does not issue a 1099-K because it is a business checking account, not the marketplace payment processor. The marketplaces you sell on (eBay, Etsy, Poshmark, Depop, Shopify Payments) issue 1099-Ks based on the gross payments they processed for you. Check Novo's current tax forms and account terms for any other reportable account activity.

What happens to my deposits if Novo shuts down?

Novo is a financial technology company, not a bank. Banking services are provided by Middlesex Federal Savings, F.A., Member FDIC. FDIC insurance applies if the insured bank fails, up to $250,000 per depositor, per insured bank, per ownership category.

Can I accept card payments at a vintage pop-up or flea market with Novo?

Novo does not sell a card reader, but Novo integrates with Stripe, so sellers can use Stripe for in-person card payments and deposit settlements into Novo by ACH. Sellers can also send Novo Invoices with payable links for direct buyer payments.

Does Novo charge for incoming or outgoing wires?

Incoming domestic wires do not carry a per-wire fee on Novo. Outgoing wire fees and other pricing details are listed in Novo's current fee schedule. ACH transfers, which is how most reseller payouts arrive, do not carry a per-transfer fee.

Do I need an LLC to open a Novo account?

No. Sole proprietors can open Novo with an SSN. An LLC or corporation gives you liability separation and lets you build business credit under an EIN, but plenty of resellers start as sole props and form an LLC once revenue justifies it.

Can I use Novo Reserves for quarterly estimated taxes?

Yes. Many resellers create a Reserve called "Quarterly Estimated Tax," allocate a portion of each payout to it within their Novo checking balance, and pay the IRS from their Novo account on the April, June, September, and January deadlines. The right percentage to set aside depends on your income, deductions, and state — talk to a tax advisor for your own numbers.

Is Novo the right account for a vintage or resale business?

If your resale business runs on marketplace payouts and card-based sourcing, Novo covers the workflow: ACH payouts into one account from every platform with no per-transfer fee, Reserves to earmark sales tax and sourcing money inside your checking balance, direct sync to QuickBooks and Xero, and no monthly fee eating into thin margins. If you buy inventory in cash at flea markets and estate sales, you'll need a companion account somewhere that takes cash deposits, or a money-order workaround. Everything else, including 1099-K reconciliation and handling marketplace-facilitator sales tax, gets easier when your business money lives in one place.

Open a Novo business checking account →