How Do Business Prepaid Cards Work?
There’s a new financial solution that’s taking the corporate world by storm. Companies are ditching their high-limit credit cards and choosing a more secure option. Prepaid debit cards are making appearances in the pockets of some of the most successful businessmen in the world. What was once seen as a financial solution only for consumers has crossed the line into the corporate setting. From the security to the ease of use, there are numerous reasons to make the switch to prepaid card solutions. How do these business cards work exactly?
Prepaid Card Fundamentals
A prepaid debit card is different than your typical credit card. When obtaining a credit card, your business profile and financials are reviewed, and then a credit limit is issued. Even if the credit limit is high, it could result in overspending. A corporate prepaid card allows you to deposit funds into the card account before any money can be spent. As purchases are made, the money is withdrawn from the account. These cards can be reloaded as needed or simply used one time.
Set Up and Go
Obtaining prepaid cards for your business is easier than you might think. Because there are no credit limits involved, it’s fairly easy to obtain approval. Upon approval, you’ll have the opportunity to customize your cards with your business logo and colors. You can choose to have each card issued to an employee or to have a generic company card made that any of your employees can use.
Adjust Your Limits
One of the biggest reasons business owners decide to ditch credit cards and use prepaid cards instead is because of the adjustability of the limits of each card. There’s no risk of your employees overspending or throwing off your budget. You can add more money to each card’s account as needed. Whether funds are added weekly, monthly, or quarterly, your employees will be forced to follow your budget and think twice each time they run their card.
Review Financials Easily
It’s easy to review the spending on each of your corporate prepaid cards. Reconciling the monthly reports will allow you to analyze where your money is going. Based on the spending of your employees, you can then decide how much money should be distributed among the cards in the future.
Protect Your Finances
With a corporate credit card, you risk theft. It’s easy to use a business card for personal use. A prepaid card cuts down on the dangers of theft by limiting the amount of money employees and outsiders have access too. Because your prepaid card isn’t linked to your bank account or a high credit limit, it protects your finances.
Choose the Best Card for Your Business
While making the switch to corporate prepaid debit cards is an easy choice, it’s important to select the right provider. Many prepaid card providers will charge unnecessary fees for transactions. Over time, these fees add up and cost your company capital. Select a prepaid provider that limits the amount of fees that are charged. Your provider should also make it easy to review your statements and reload each card on your account. Before you select a prepaid card, do some research on your prospective providers. If you do international business, it’s important that your provider offers a card that can be used with merchants overseas. It’s vital that your chosen company is reputable and that you can trust them with your money.
Custom prepaid cards are an efficient, budget-friendly way to manage your company’s finances. Don’t pay the high price of interest rates any longer. Reign in your employees’ spending and put more money in your pocket by getting rid of credit cards and using prepaid cards instead.