Corporate Prepaid Cards Are The Best Bet For Your Business, And Here’s Why
Managing corporate expenses—and keeping them as low as possible–is one of the keys to success for every business, whether your company is a small, home-based entrepreneurial endeavor or a massive, multi-national corporation.
Historically, regular credit cards have been seen as the way to go for handling employee expenses, but not anymore. Prepaid cards offer a wide variety of impossible-to-ignore benefits, providing both employers and employees alike with a series of inarguable advantages. Prepaid cards offer fast and inexpensive ways to help keep corporate costs in check, incentivize employees, settle expense accounts, and reduce the wait time between payments. If you or your company is looking to improve your corporate expense strategy, prepaid cards are the way to go. Check out five reasons why corporate prepaid cards are the best bet for your business down below.
Avoid Overspending / Increase Oversight
Credit cards, especially business credit cards, can be a dangerous thing—reckless spending due to high credit limits and improper use of cards are real issues. These problems can be avoided entirely by switching to prepaid cards. Fixed balance cards can’t be overcharged, and, because they are preloaded by administrators, your company has full control over how much is put on each card. Not only that, but you can see where the money is spent and limit which stores the money on the card can be spent on, allowing for increased oversight. Prepaid cards protect your expense accounts and increase your level of control.
There is no credit with a prepaid card, so it’s impossible to create debt. You can’t go over the predetermined limit set on the card—if you try to make a purchase for more than the money on the card, the transaction will be declined. This also means that there are no interest charges, as there are no balances to pay off. Your business can also avoid the potentially messy/embarassing issue of making your employees take credit checks. However, just like credit cards, prepaid cards are accepted online and anywhere in real life that accepts Visa, MasterCard, etc.
Save Time & Money
Prepaid cards offer a fast, streamlined way of dealing with employee expenses. Traditional payment methods, such as cheque cashing or direct deposit, can leave an employee waiting days to receive a payment, leaving them short on money and inconvenienced. This can lead to anger and dissatisfaction among your workforce. Prepaid cards can be loaded almost instantly, and payments can be made as often as they are required. If an employee needs to pay for work-related expenses on short notice, a card can be issued, activated, and loaded with funds in minutes.
You can also save money by doing away with the costs of creating and distributing cheques among your workforce; in fact, you don’t even need a bank account to use a prepaid card.
The old-fashioned and out-of-date way of managing business expenses involves collecting receipts, filling out expense reports, and eventually reimbursing the employee. This is time-consuming, expensive, and inconvenient for everyone involved. Prepaid cards do away with this pointless step—all employee purchases are recorded on reports that can be easily accessed online, anywhere.
Prepaid cards aren’t just for managing corporate expenses; they also have several other business-related uses:
• Distribute award/incentives/rebates to employees
• Simplify corporate payments
• Deliver insurance payments + health benefits
Promote Your Brand
Creating a branded, prepaid company credit card with your logo on it is a powerful promotional tool. It’s a visible and cost-effective way to keep your name in the minds of your consumers and employees, as they will see your business every time they use the card. It’s also a great way to instill loyalty—there is a positive psychological reaction that occurs when an employee/consumer feels like they are spending a business’ money, and not their own. A happy worker is the best worker, after all.