Free from which sector you are coming from, to open a business is not an easy process. Not only because of time consuming documentation, heavy regulations and difficulty in providing sustainability, but also in terms of finding the best payment option for your business. There is a huge selection of methods out there but what are the proper ones meeting your needs? E-wallets, online banking, cash and money transfer services come with various choices. There are thousands of establishments claiming they can provide the very best service for you.
Self-judgement is the main key here. What is the best way to control your budget? Which countries do you work with? And what is your credit score? If you want to take the easy and safe path with the capacity of full control on your funds, the best payment option seems like a corporate prepaid card. In order to clear the fumes, we better start with the question of “What is a prepaid card?”
In a nutshell, they are “pay-as-you-go” cards. There is a perplexing trait here. The merchants call prepaid cards as prepaid debit cards or prepaid credit cards considering the technical fundamentals. But we can not talk about a line of credit at all. This is just a common misconception.
The main difference between prepaid cards compared to debit cards or credit cards is the function of overdrafts. Unlike credit cards, prepaid cards for business do not let your employees to cash out more and incur debts. It gives the full control of money flow in your company. This is a great power. If you ask the old boys in any industry, their first advice will be to keep employees in view. No matter how much you trust your co-workers, there is always a possibility they can pull at your heartstrings and cause a big catastrophe. Financial sector is full of these kinds of stories of tycoons. If you are a new business trying to figure out how slippery the ground is, prepaid cards are gems. They come with various simplicities and functionality which you may utilise to understand the game.
Advantages of Prepaid Business Cards
- Take control!
Frankly, there is no better method than prepaid cards to have full control over your total spend. In the beginning, actually in general, setting spending limits can be crucial. Since maintaining success is hidden under a balance between expenditure and income, you need to be extra cautious.
- Stop reimbursing employees!
Give time to your employees to list costs of a business trip and offer them prepaid cards. Therefore, you will have knowledge about where the money has been spent and the employee can be thoughtful about spending considering the maximum limit in the card.
- You are safe!
Carrying a lot of cash in your bag is not a logical option when you are traveling as it can be lost or stolen. On the other hand, cheques are not also accepted widely and they are pretty inconvenient. In Crisscross, you can easily inform your provider to replace your stolen prepaid corporate cards and you will save yourself from an unpleasant situation.
- High usability!
You can easily use your prepaid card wherever major credit and debit cards are accepted. Thus, in this aspect there is no difference between prepaid cards and other cards.
- There is no credit check!
Unlike a credit card application, while you are applying for a prepaid business card, you will not be asked for a credit inquiry impacting your credit score. It is possible to take one with poor credit.
Disadvantages of Prepaid Business Cards
- A limit in flexibility!
You have full control but what if your employee needs an urgent payment and cannot reach you? You may lose a profitable deal for such problems. Sometimes flexibility is needed to be ready anytime for anything.
- Where are the interests and rewards?
There are many banks serving interest on the left-over money in accounts on a nightly or weekly basis. But for prepaid cards, unfortunately, this is not the case. Plus, perks such as rewards, free insurances and vouchers are not possible.
- High fees!
Due to being free from annual fees and costs, prepaid card companies profit from activation and ATM fees. But you can eliminate this disturbing problem by reading the Terms & Conditions text carefully and being informed of every single detail about fee policy.
All in all, prepaid business cards come with advantages and disadvantages just like all payment options for business. The most significant of these cards are the opportunity to control spending limits. This is a big plus considering the danger of losing big amounts of money to untrustworthy employees, theft or misjudged corporations. Furthermore, they are easy to apply and this makes them worth a try.
