Let’s face it, controlling business spending can be a headache. Waiting for refunds, keeping tabs on employee expenditures, and recording receipts? It wears you out. Additionally, you’re likely facing needless paperwork and delays if you’re still using conventional payment methods like checks or business credit cards.
For this reason, companies are using prepaid corporate cards, which are a more intelligent and adaptable solution to manage business expenses. Regardless of the size of your company—startup, mid-sized, or large—these cards help streamline financial administration while giving workers the flexibility to make purchases up to certain thresholds.
Prepaid corporate cards – what are they and how can they help your company? Let’s understand.
What are Prepaid Corporate Cards?
Prepaid business cards are similar to debit cards, except they don’t need a bank account to be linked. Rather, companies put a certain amount onto the card, which workers may spend for work-related costs like client lunches, office supplies, or travel.
There is no chance of overspending, no interest fees, and no hidden costs, in contrast to credit cards. There won’t be any surprises after the balance runs out.
The Reasons Companies Are Using Prepaid Business Cards
- Improved Management of Business Expenses
Controlling expenditure is one of the most difficult problems in corporate finance. Businesses may assign a certain amount to each employee or department using prepaid corporate cards. In this manner, you won’t have to worry about going over budget or handling unapproved spending.
- No More Troubles With Reimbursement
Let’s face it, reimbursements are somewhat annoying. Workers are required to produce expense reports, maintain receipts, and pay out of pocket. Then, before processing payments, finance staff must confirm everything. It takes a lot of time for everyone.
This whole procedure is eliminated with prepaid corporate cards. Employees make authorised purchases using the card, and the business keeps an eye on spending in real time. No paperwork, no waiting.
- Enhanced Protection Against Fraud and Security
Prepaid cards lower the chance of fraud, in contrast to conventional corporate credit cards that are connected to a business’s bank account. It is possible to deactivate a lost or stolen card right away without jeopardising the financial stability of your company.
Additionally, there is no chance of debt accumulation or illegal activities since workers are only permitted to spend the preloaded amount.
- Simplified Monitoring of Expenses
It may be quite difficult to manage company spending, particularly when you’re handling many transactions involving several staff and locations. Online dashboards that enable real-time expenditure tracking, spending restriction setting, and report generation are included with prepaid corporate cards.
- No interest fees or credit checks
Prepaid corporate cards don’t need a credit check, in contrast to conventional company credit cards. This implies that companies of all sizes, including start-ups and small enterprises, may get them without being concerned about interest rates or credit limitations.
How to Pick the Best Corporate Prepaid Card
Prepaid business cards are not all equal. When selecting one for your company, take into account:
- Ease of Use: Seek for a supplier that provides an easy-to-use dashboard for monitoring spending.
- Customisation: Some suppliers let companies establish expenditure limits for certain staff members.
- Security Features: Verify that the card includes fraud protection and that it may be used to immediately freeze or deactivate missing cards.
- Fees & Charges: Verify if there are any unstated costs associated with transactions, cash withdrawals from ATMs, or reloading money.
The Future of Business Spending
Prepaid corporate cards are becoming a crucial tool for financial management as companies continue to shift to digital alternatives. They are a wise substitute for conventional business credit cards as they provide convenience, security, and real-time spending management.
XONN provides a smooth and effective way to streamline company spending if you’re thinking about making the transition to prepaid corporate cards. XONN makes it simple for companies to handle their money, whether they need prepaid cards for travel expenditures, vendor payments, or employee expenses.
Ultimately, business spending shouldn’t be difficult. And it doesn’t have to be with prepaid cards.