Over the years, one financial tool has taken the corporate world by storm—prepaid card for business. This type of card also has countless companies ditching their debit and credit cards and embracing this new, convenient, and highly secure financial tool.
Nowadays, it’s not surprising many successful entrepreneurs are now using prepaid cards for their business. While once seen as the consummate financial tool for individual consumers, it has now been massively embraced in the corporate world.
From unbeatable ease of use to unmatched security, there are numerous reasons the business world has opted for this exciting financial solution. So how do prepaid cards for business work exactly? You’ll discover all the basics in this article.
Prepaid Card Essentials
While almost identical in appearance, prepaid cards are actually different from credit cards. For starters, your business profile and financials will be thoroughly reviewed before you are granted a credit card. A prepaid card on the other hand will not require submission and review of the business financials.
Credit card issuers also set a limit for each card issued. A prepaid card on the other hand will entail users to deposit money onto the card before it can be used for both withdrawal and purchase transactions.
Each time purchase transactions are performed using a prepaid card, the amount is deducted directly from the money that’s available on the card. A setup like this makes prepaid cards the consummate option for those who want to effectively stick to the budget they’ve set.
While there is also a possibility that businesses can be granted a high credit limit when they apply for a credit card, there is also the likelihood that it can lead to overspending when not monitored accordingly.
Obtaining Prepaid Cards
Obtaining a prepaid card for business use is without doubt easy, quick, and straightforward. And since prepaid cards don’t come with credit capabilities, issuers are not as fussy about who they issue prepaid cards to.
Once approved, some prepaid card issuers give businesses the option to customise the cards using their business logo and colours. In addition, businesses also have the option to have the card issued to a specific employee or opt for a generic company card that can be used by any of their employees.
Ease and Flexibility of Use
Without doubt, one of the primary reasons business owners have opted for prepaid instead of credit cards can be attributed to the former’s ease and flexibility. Since you will be in control of the amount of money you’ll load onto the card, managing money has never been easier.
In addition, when businesses use prepaid cards they won’t have to worry about employees overspending or throwing them off the budget they’ve already set. Even better is you have the option to load money onto the account whenever you deem fit.
In other words, you can load funds on the card daily, weekly, monthly, quarterly, or yearly. All up to you. Surely, that’s ease and convenience you can’t afford to miss out on!