How Exactly Do Business Prepaid Cards Work? Here’s a Quick Insight
A new and innovative financial tool has been embraced massively by the business world lately—prepaid card for business. Taking into account all the amazing benefits they offer, it’s not really surprising why many businesses now prefer prepaid card for business over the other plastic card alternatives available at their disposal.
Once considered an awesome financial tool that’s only available to consumers, prepaid cards for business is now making a really huge impact in the corporate world.
Because of their surface similarities, it’s easy to mistake one card for the other nowadays. However, business prepaid cards are actually different from the typical credit cards people use.
For starters, credit card issuers will look into the individual’s financial status, alongside the business profile before they are considered qualified to get a card. When applying for a prepaid card on the other hand, individuals no longer have to submit any financial documents or go through those inconvenient credit checks.
While having access to credit cards with high credit limits can be very advantageous for businesses, it is not without its share of disadvantages. Case in point: credit cards can encourage employees to overspend since they won’t be directly using the company’s money but that of the bank.
Fortunately, with a corporate prepaid card, money has to be loaded onto the card before it can be used. This feature can help warrant overspending can be avoided as users will have to limit their spending in accordance with the available balance on the card.
It is a good thing to note that getting a prepaid card for business is actually effortless. And since the card does not come with any credit capability, getting approval is relatively easy.
Once approved, businesses are sometimes given the option to have the corporate prepaid card personalised by using the company colours and logo. In addition, businesses also have the alternative to decide whether the card is issued to a specific employee or a generic card is provided to authorised employees.
For most, flexibility is one of the main reasons companies now prefer using the easy-to-use prepaid cards over credit cards. In addition, since users have the option to load money at any time they deem convenient, they can easily avoid the risk of overspending or going beyond the allocation they have set.
Aside from helping warrant users don’t spend beyond what they can afford, using a prepaid card for business is also deemed ideal since loading money onto the card is both fast and easy. Also, business owners are given the option to load money whenever convenient—daily, weekly, quarterly, monthly, etc.
With a prepaid card, reviewing the company’s spending has never been easier. Not only that, reconciling daily, weekly, and monthly reports is also a walk in the park. When you are able to reconcile your prepaid card spending effortlessly, you’ll also be able to easily analyse where your money is going.
Not only that, based on the spending patterns you see, you’ll also be able to easily identify the loading frequency as well as the ideal amount you should load.