More and more businesses are making the switch from using traditional credit cards to prepaid corporate cards. These prepaid cards are just as easy to use as credit cards, but come with a plethora of additional benefits. It gives you, the business owner, more control over spending by your employees and allows you to stay on top of your budget. A prepaid card for business also streamlines payroll, reimbursements, and incentives. Before you jump on the prepaid bandwagon, here are a few things that you should know.
There are numerous reasons to begin using prepaid cards in your business instead of credit or debit cards. It’s important to use them to their full potential and understand the benefits before selecting a card. Instead of handing your employees a corporate card with a high limit, you can load a designated amount onto each of the prepaid cards you issue. This cuts down on employee theft and helps to separate personal expenses from corporate ones.
It’s also much easier to track employee spending and reduce overspending. Because you can load the exact amount that’s available in your budget for your employees to spend, there’s no chance that they’ll go over. If they attempt to make a purchase that is more than the amount that is currently on their card, the transaction will be declined. This means that there’s no need to reallocate funds due to an area that’s overspent. It’s the perfect way to regain control over your company’s budget and put more money in your pocket.
While prepaid cards are an easy way to control employee expenditures, it’s also a great way to streamline your payroll services. Instead of cutting checks every pay period, simply issue a personal prepaid card to each of your workers. You can then directly deposit their paychecks on to their cards. There’s no need to wait for checks to be cashed. These types of cards also make it easy to stay on top of reimbursements or offer your employees cash incentives as you can transfer money to employees with the push of a button.
There are many different prepaid corporate cards on the market. While they may all offer similar benefits, it’s important to pay attention to the fine print. Some cards require a certain amount of spending each month, while others may penalize you if you don’t load a certain amount of money on each card during a designated time period. Before you decide on a card that’s right for your business, pay close attention to the terms and conditions.
If the wrong person were to get their hands on your corporate credit card, they could drain your funds and tie up your capital. With prepaid business cards, there’s no risk of identity theft. These cards aren’t tied to your bank account or credit lines in any way.
Many prepaid business cards weigh down their users with fees. They may charge you a setup fee or tack on a few dollars every time you load more money on. These fees may seem small, but over time they add up to a lot of money. Look for a prepaid business card that isn’t heavily laden with fees. After all, one of the main reasons you’re switching to prepaid cards is to save money.
You don’t want a prepaid card that is hard for you or your employees to use. That would defeat the purpose of making the switch in the first place. The prepaid cards that you decide to use for your company should be easy to set up from the very beginning. Tracking spending, loading cash, and ordering more cards should be quick and simple.
It should be just as simple for your employees to use the prepaid cards. Whether they are used for payroll purposes or to purchase supplies for the business, your chosen card should be accepted at all the stores you frequent. If needed, make sure that the prepaid cards you use have an option to withdraw cash, too.
Using prepaid corporate cards is a savvy business decision. It saves you money on interest charges and monthly payments, and puts budget control back in your hands. Arming yourself with these facts makes it easier to choose the right prepaid business cards for small businesses.