Relay

What is Relay?

Relay is a Toronto-based financial technology company that provides online business banking and money management tools designed specifically for small businesses. Founded in 2018 by Yoseph West and Paul Klicnik, Relay aims to help small business owners take control of their cash flow through a digital-first banking platform that integrates with popular accounting software.

Relay is not a bank itself—banking services are provided by Thread Bank, Member FDIC. The company has raised $51.6 million in funding over 3 rounds, with its most recent $32.2 million Series B round led by Bain Capital Ventures in February 2024. Other investors include Better Tomorrow Ventures, Garage Capital, Tapestry, and Industry Ventures.

Relay is the official banking partner of Profit First, the cash flow management methodology created by serial entrepreneur Mike Michalowicz. The platform is built around the concept of allocating every dollar to specific purposes, making it ideal for businesses implementing the Profit First system. According to the company, business owners log into Relay an average of 13 times per month, with 40% of primary banking customers logging in daily.

Main Services & Features

Business Checking Accounts

• Up to 20 individual checking accounts per business
• No monthly fees or minimum balance requirements
• No overdraft fees
• Unique routing and account numbers for each sub-account
• Automated transfer rules between accounts
• Real-time transaction alerts and notifications

Business Savings Accounts

• Up to 2 savings accounts per business
• No monthly fees or minimum balance requirements
• Tiered APY based on balance and plan:
  • Less than $50,000: 1.00% - 1.03% APY
  • $50,000 - $250,000: 1.50% - 1.75% APY
  • $250,000 - $1,000,000: 2.00% APY
  • Over $1,000,000: 2.86% - 3.03% APY
• Internal transfers only (no external ACH from savings)
• Automatic savings rules and allocations

Debit Cards

• Up to 50 Visa debit cards (physical and virtual)
• $7,000 daily transaction limit
• $1,000 daily ATM withdrawal limit
• Free unlimited withdrawals at AllPoint ATMs
• Visa Zero Liability Protection
• Spend policies and controls per card
• Custom card designs with 30+ themes

Credit Card (Relay Visa Credit Card)

• Up to 1.5% cash back on all purchases (rate depends on plan)
• Charge card format (full balance due every 30 days)
• No annual fees
• Auto-pay from linked checking account
• Spend policies and vendor/category controls
• Employee cards with individual limits
• Available by invitation only to eligible customers
• Minimum $25,000 in Relay accounts for cash-based credit limits

Payments & Transfers

• ACH transfers (standard and same-day with Pro plan)
• Domestic and international wire transfers
• Check deposits via mobile app
• Paper check sending
• Payment collection via PayPal, Stripe, Square, and card payments

Invoicing & Bill Pay

• Create and send professional invoices
• Payment links via email or text
• Accept payments via ACH, wire, credit/debit card
• Card payment processing: 2.9% + $0.30 per transaction
• Bill pay with vendor management
• Import bills from QuickBooks Online and Xero (Pro plan)
• Approval workflows for bill payments

Expense Management

• Receipt capture and storage
• Automatic expense categorization (paid plans)
• Employee expense tracking
• Detailed spending data per transaction
• Integration with accounting software

Pricing

Feature	Starter (Free)	Grow ($30/mo)	Scale ($90/mo)
Monthly Fee	$0	$30	$90
Checking Accounts	Up to 20	Up to 20	Up to 20
Savings Accounts	Up to 2	Up to 2	Up to 2
Debit Cards	Up to 50	Up to 50	Up to 50
Savings APY	1.03%	1.75%	3.03%
Credit Card Cash Back	1.0%	1.25%	1.5%
Same-Day ACH	❌	✅	✅
Free Outgoing Wires	❌	✅	✅
Bill Import (QBO/Xero)	❌	✅	✅
Multi-Step Approvals	❌	✅	✅
Auto Expense Categorization	❌	❌	✅

Transaction Fees:

Transaction Type	Free Plan	Pro/Grow/Scale
Incoming Wire	Free	Free
Outgoing Domestic Wire	$5	Free
Outgoing International Wire	$10	Free
International FX Markup	1%+	1%+
ACH Transfers	Free	Free
Same-Day ACH	N/A	Included
Card Payment Collection	2.9% + $0.30	2.9% + $0.30

Key Capabilities

Cash Flow Management:

• Multiple accounts for earmarking funds (taxes, payroll, expenses, profit)
• Automated allocation rules between accounts
• Maximum-balance transfer rules
• Real-time visibility into all account balances
• Profit First methodology integration

Team & Collaboration:

• Multi-user access with 7 permission levels
• Accountant/bookkeeper access
• Employee card management with spend policies
• Vendor and category restrictions per card
• Approval workflows for payments

Integrations:

• QuickBooks Online (direct sync)
• Xero (direct sync)
• Shopify (direct integration)
• PayPal, Stripe, Square (payment collection)
• Gusto (payroll)

Business Types Supported:

• Sole proprietorships (up to 10 accounts)
• LLCs
• Corporations
• Partnerships
• Charities and trusts (select countries)

Security & Compliance

• FDIC insurance up to $3 million via Thread Bank's Insured Cash Sweep program
• SOC 2 Type II certified
• Visa Zero Liability Protection on debit and credit cards
• Two-factor authentication (2FA)
• Advanced encryption
• Role-based access controls
• Real-time fraud monitoring

Note: In 2024, the FDIC issued an enforcement action to Thread Bank (Relay's banking partner) requiring enhanced suspicious activity monitoring. This does not affect customer fund safety but reflects regulatory scrutiny of banking-as-a-service programs.

Who Should Use Relay?

Ideal for:

• Small businesses implementing Profit First methodology
• Businesses needing multiple accounts to organize cash flow
• Digital-first businesses without need for branch banking
• Startups and solopreneurs wanting fee-free banking
• Businesses with multiple employees needing expense cards
• Companies using QuickBooks Online or Xero
• E-commerce sellers on Shopify, Amazon, or similar platforms
• Freelancers and contractors managing business finances

Not ideal for:

• Businesses needing traditional loans or lines of credit
• Companies requiring cash deposit capabilities
• Businesses frequently receiving check payments (6-7 day hold times)
• Non-US businesses (requires US SSN and physical address)
• Industries including: cryptocurrency, firearms, cannabis, credit repair, money services

Considerations

• Mobile check deposits may be held for 6-7 business days (average ~3 days)
• Savings accounts cannot make external ACH transfers
• Credit card available by invitation only
• International transfers have 1%+ FX markup
• No physical branches or in-person banking
• Customer service primarily digital (some users report response delays)
• Previously partnered with Evolve Bank & Trust; transitioned to Thread Bank in 2023
• Checking accounts do not earn interest