US bank account

Physical vs. virtual accounts: two very different things

There are two broad ways to hold US business money, and confusing them causes most of the frustration non-resident founders run into.

A physical (brick-and-mortar) bank account is a chartered US bank account opened at a bank like Chase, Bank of America, Wells Fargo, or Citibank. These are the institutions people mean when they say "a real US bank." They are members of the FDIC, and your deposits are directly insured up to the standard limits.

A virtual (fintech) account is offered by a financial-technology company or Electronic Money Institution (EMI) — for example Mercury, Wise, Payoneer, Brex, or Slash. These companies are usually not banks themselves; they partner with chartered banks or hold your funds under e-money safeguarding rules. They are built for remote onboarding, which is exactly why they matter to founders who cannot fly to a US branch.

The practical takeaway: for most non-residents, the realistic remote option is a fintech account, because a traditional branch account generally cannot be opened without appearing in person. The rest of this guide explains why, and how to do the remote path properly.

• Physical account = chartered US bank, FDIC-insured directly, usually opened in person.
• Virtual account = fintech/EMI, remote onboarding, deposit protection varies and must be checked.
• Fintechs are not banks; they partner with banks or safeguard funds under e-money rules.

A warning: “physical bank account” scams

You will see services promising a genuine US brick-and-mortar bank account opened remotely, with no travel. In general, refrain from these — a real branch account cannot legitimately be opened without in-person identity verification, and “no travel” offers usually rely on nominee holders or false address or identity details that can get your account frozen and expose you.

We break down exactly how this works, the red flags, and what to do instead in a dedicated guide.

• A real US branch account generally requires a US visit (PATRIOT Act / KYC).
• “Remote physical, no travel” offers often depend on nominees or false details — refrain.
• See the Physical Bank Scam guide below for the full breakdown.