The Fundamentals of Business Prepaid Cards
Over the years, there is one financial solution that has taken the corporate world by storm—prepaid card for business. Laden with exciting benefits that are hard to match, it’s not surprising many companies have ditched their high-limit credit cards and have opted to use the every dependable prepaid card for business instead.
While once seen as a financial solution designed just for personal use, prepaid cards have proven to be so much more. From convenience and ease of use to security, there are countless awesome reasons to switch to prepaid cards.
However, while undeniably useful and undoubtedly popular, not many are really familiar with how prepaid cards work and the peerless benefits they can offer.
The Fundamentals of Prepaid Cards
While almost identical in terms of look, a prepaid card is very different from other plastic cards. For starters, those who want to obtain a prepaid card can easily do so minus all the hassles associated with credit or debit card applications.
Those who have credit or debit cards know all too well that the application process is not only tedious, it is also very time consuming. And the same is true for businesses who apply for those cards. In other words, during the application, their business profile as well as their financials will be looked into.
Also, even if given a high credit limit, businesses who use credit cards are still at a disadvantage since there will always be the risk of overspending. Using prepaid cards on the other hand is undoubtedly way better for their finances as their spending will be limited by the balance that’s available on the card.
As transactions are made, the amount will be deducted straight from the account. The same is true when it comes to ATM withdrawals. Once the balance in the card has been depleted, users have the option to load money immediately or at any time they deem fit.
The Superb Benefits of Prepaid Cards for Business
Limits can be easily adjusted
One of the primary reasons many business owners have ditched their credit cards and opted to use prepaid cards instead is the adjustability of the limit. Since businesses have the option to load money whenever they deem best, they are more in control of their finances and they can avoid the possibility of getting thrown off budget.
When using corporate prepaid cards, reconciling monthly reports is a lot easier as one can easily view and analyse where the money is going. Also, since employee spending can be viewed easily, deciding how money is distributed among cards is also quick and straightforward.
Protecting finances is possible
When using credit cards, companies are not vulnerable to overspending, they are also vulnerable to theft. Fortunately, with a prepaid card, the risk of theft is minimised significantly as spending is limited by the balance available on the card.
Also, since access to the card is only limited to a number of people, the tendency to spend beyond the budget is also minimised. In addition, since prepaid cards are not linked to any bank account, your account is also protected.