How Do Prepaid Cards for Business Work?
Nowadays, using prepaid cards for business has become almost the norm among businesses—from established multimillion dollar firms to small and medium enterprises (SMEs).
The huge spike in popularity prepaid cards for business are now enjoying in the business world is not really surprising. After all, prepaid cards for business provide convenience and ease other plastic cards just can’t match.
Aside from the peerless convenience prepaid cards for business offer, they also allow cardholders to do many of their financial transactions minus all the hassles associated with bank-related transactions.
How Can Your Business Benefit from Using Prepaid Cards?
For the uninitiated, below are some of the prevalent functions and benefits prepaid cards in business offer and how they work:
Employee payroll
In a lot of cases, it can be challenging for small businesses (those with less than 10 employees) to be granted a payroll account by most banks. Basically, this is because most banking institutions have a minimum requirement (mostly 20 employees and up) for those organisations who would be granted a payroll account.
Thankfully, this is where a prepaid card for business can come in handy. As far as prepaid cards go, organisations and businesses are allowed to get as many prepaid cards as they deem fit so they can distribute it to their staff.
Using a prepaid card also makes it easy and effortless for businesses to perform fund transfers when giving out salaries or work-related incentives. This means employers won’t have to go through the hassles of handing out cash or checks ever again.
Scheduled payments
Undoubtedly, running a business will require several external obligations. These external obligations include payment of utilities that can help ensure all the aspects of the business run as seamlessly and smoothly as possible.
However, since it is not always feasible to pay for every transaction in cash at all times, it is reassuring to know that prepaid cards can be used to make scheduled payments. That means users of prepaid cards for business get to enjoy the convenience and ease of making scheduled payments for some of the invoices they get.
In addition, most utility bills are associated with several payment networks that also honour and accept prepaid cards. Nowadays, many lenders and vendors also prefer receiving payment through a payment network as it is easier for them to track and process.
In addition, using a prepaid card also makes it possible to easily streamline payments so transactions are not only easy to carry out but effortless to manage at the same time.
Purchasing of supplies and other necessities from overseas vendors
Nowadays, sourcing supplies overseas has become very common. When shopping and ordering from merchants online, payments are often provided through bank transfers or network partners. Fortunately, that’s no longer the only option available at one’s disposal.
Prepaid cards are also now accepted as a means to pay for purchases done online. While prepaid cards are not linked to banks, several of them do have tie-ups with payment networks that are accepted by online merchants. In other words, prepaid cards can be used for online purchases and it’s both quick and secure.
Wrap Up
The convenience and ease provided by prepaid cards are undeniably hard to match. With that said, it’s not surprising why they are the preferred payment means of many businesses nowadays.
While there are obviously other plastic card options available (i.e. credit and debit cards), thanks to the peerless benefits they offer, prepaid cards have remained one of the most loved options by many businesses today.
Lastly, unlike credit cards, prepaid cards do not have credit capabilities so users are limited by the balance that’s available on the card. This feature makes it ideal for many businesses as it allows them to stick to their budget and not spend more than they can actually afford to.