Updates to your Brex business account

Overview

Welcome to the next iteration of your Brex business account - a product that provides customers with a place to fulfill your banking needs*, store funds, manage operational spend, earn yield through money-market funds (MMF), and receive up to $6M in total FDIC-insured coverage through Brex sweep program banks. The new Brex business account will include a new checking account from Column N.A., Member FDIC (“Column”), as well as treasury and vault accounts provided by Brex Treasury LLC, a FINRA/SEC-registered broker-dealer (“Brex Treasury LLC”). While you have distinct accounts for money-market funds (treasury) and FDIC-insured deposits (vault), you’ll use your checking account the same way you used your Brex business account in the past for operational spend. This new workflow will simplify the payment instructions that your vendors use when they send you international wires. It also gives you more transparency on your funds’ allocation and lets you set up automatic transfers between accounts to automate your operational spend. Here’s what changed:

• Moving forward, your Brex business account will include the following distinct account types:
  • A new checking account will be created for each existing Brex business account you currently have. This will retain everything you need to operate including:
    • Account and routing number
    • Historical transactions
    • Payment approval rules
    • ACH debit blocking rules
    • Recurring and scheduled transfers
    • ACH debits from external accounts
  • Your MMF holdings and FDIC sweep funds will still be managed by our broker-dealer Brex Treasury LLC, and will be split into two surfaces in the product: treasury and vault.
  • Each of these accounts — checking, treasury, and vault — will have their own statements generated.

To learn more about your new account types, see this Help Center article.

Verifying business details

Before you migrate to the new experience, we’ll ask you to confirm that we have your business name, address, or beneficial and controlling officer information listed correctly.

Migrating to the new Experience

Starting August 2024 through October 2024, account admins will receive an email that prompts them to log in and agree to the new terms and conditions, including the new Brex Business Account Terms & Treasury Account Agreement, Column Commercial Demand Deposit Account Agreement, and Column Sweep Agreement. Once you have agreed to the new terms and conditions in your dashboard, you will be given the option to allocate your funds into the new accounts. Depending on this target allocation, we’ll initiate a transfer from your existing Brex business account(s) to your treasury, vault, and checking account(s). The allocation can easily be changed at a later time as you can transfer funds between the accounts. To avoid any disruption to your operational spend, please allocate enough funds to your checking account(s). Setting up auto-transfers allows you to seamlessly transfer funds between your accounts.

What isn’t changing?

No hidden transaction fees when sending domestic wires, international wires, ACHs, or checks via your Brex business account. No changes to routing and account numbers - we’ll carry them over to your primary checking account. Even after your account’s migration, you can go back to view previous transactions and statements in your dashboard.

During migration

If you have multiple Brex business accounts

If you have multiple Brex business accounts, you will receive a checking account for each existing Brex business account. These accounts will retain the same account and routing numbers. The transfer of your funds will happen in a two-step process. First, as soon as you migrate, we will transfer any excess funds in your non-primary Brex business accounts into your primary Brex business account, insofar as these funds are needed to meet the allocations that you set for your treasury and vault accounts. Then from your primary Brex business account, we will transfer funds into your treasury and vault accounts, depending on your allocation. Once these transfers are completed, your Brex business accounts will be converted into checking accounts.

If you have a Securities Account Control Agreement (SACA)

If you have a SACA in favor of Brex with your Brex business account, we’ll convert your SACA account into a secondary checking account and migrate your total amount of pledged funds back into Brex Treasury LLC in your treasury account. Here, you’ll continue to earn yield. Because your SACA is now part of your treasury account you can change the name of your newly converted checking account or delete it by following the steps in this help article. If you have a SACA in favor of a third party lender, the SACA will only cover your treasury and vault accounts and will not cover your checking account(s). The checking account is maintained by Column N.A., not Brex Treasury LLC, and thus your checking account(s) will not be subject to the terms of the SACA. If you need a Deposit Account Control Agreement (DACA) to cover funds held in checking, please contact Brex Support.

If you have Payroll or ACH Debits set up

If you regularly use your Brex business account for payroll or other ACH debits, please allocate enough funds to your checking account(s) so you can fund transactions. Since your account and routing numbers are not changing, payroll and ACH debits will succeed so long as you have sufficient funds in the account. Within the first 45 days following your migration, we’ll provide temporary overdraft functionality for your checking accounts, which lets incoming debits go through provided you have sufficient balances in your treasury or vault accounts, so you can allocate your funds into the new account structure. We’ll also carry over any customized ACH blocking you have in place, or you can put new settings in place.

After migration

Brex business account transactions

After you migrate to the new experience, your account will differentiate transactions that occurred under the old account structure between business accounts and future transactions that occur between Checking accounts. Your pre-existing Brex business account will keep the same information and transaction history. However, you’ll receive separate statements for the month of your migration, so you can distinguish transactions that occurred in connection with Brex Treasury from those that occurred through your new Checking accounts at Column. Your dashboard will describe transfers as “Primary business account 1234” to “Primary checking account 1234” for the account’s full balance. This marks the point in time when you converted your Brex business account structure to include a Checking account. During the transfer process, we’ll only buy or sell your MMF positions when it’s necessary to achieve your target allocation. Otherwise, MMF assets and their dividend accruals are transferred directly from your pre-existing Brex business accounts to your treasury account within Brex Treasury LLC. Checking accounts at Column do not hold any MMF positions. *Brex is a financial technology company, not a bank. Checking accounts and banking services are provided by Column N.A., Member FDIC.