Want to Use Your Prepaid Card for Business? Here’s How it Works
Since they were first introduced, prepaid cards for business have become quite popular in the business world. For starters, they have become one of the most popular means of doing transactions among small and medium enterprises (SMEs).
However, the massive popularity prepaid cards are enjoying is not really surprising if we look at all the amazing benefits prepaid cards for business offer. For starters, prepaid cards provide convenience and ease that’s truly unbeatable and difficult to match.
Aside from the unmatched convenience and ease, prepaid cards also make it possible for users to perform financial transactions without all the hassle related with bank transactions.
If you’re considering getting a prepaid card but don’t know how they work, read on and find out!
For scheduled payments
Running a business will often entail a lot of external obligations. Some of these external obligations include payment of bills and utilities needed in the operation of the business such as vendors and loans.
Understandably, it’s not possible for businesses to pay in cash all the time. Fortunately, with a prepaid card, it is possible to make scheduled payments. Not only that, there is also the added ease and convenience knowing one can easily make scheduled payments once the invoices are provided.
In addition, majority of the time, utility bills are associated with different payment networks that honour prepaid cards. Many lenders and vendors also choose to receive payments through payment networks as they are much easier to track and process. Also, prepaid cards make it very easy to streamline payments so things are way easier to carry out.
For employee payroll
In some instances, it can be challenging for small businesses to obtain a payroll account from banks. Basically, this is because banking institutions often have a minimum requirement (typically, 20 employees up) for payroll accounts.
The good news is that businesses can now turn to prepaid cards as an alternative. As far as using prepaid cards go, businesses can be granted as many prepaid cards as they would like to purchase so they can distribute them to their employees and staff.
Additionally, with a prepaid card, businesses can effortlessly and easily schedule fund transfers when the time to give the monthly compensation comes. That means employees are also spared from all the hassles of handling physical cash or handing out checks.
For purchase of supplies and other necessities from vendors overseas
Sourcing out supplies from overseas is a common practice among businesses. When shopping or ordering from online merchants, payments through network partners or bank transfers are often honoured and accepted.
Nowadays, prepaid cards can now also be used for online purchase transactions. While they are not linked or associated with any banks, many of them have a tie-up with several networks honoured by many online merchants.
In other words, you can quickly and securely perform online purchases using prepaid cards. As if not enough, you are also spared from paying those costly fees, interests, and other charges associated with some of the typical plastic cards.