Having a credit card is an essential part of every business, be it a small entrepreneurial venture or a multi-national corporation. However, not every business has the same financial requirements.
This is why many businesses use prepaid Visa cards as a sensible way to keep corporate costs in check. Prepaid cards come with many benefits, and this payment solution should be considered when looking into a new or improved corporate expense strategy.
1. Avoid Overspending
With a regular credit card, reckless spending can be a real issue due to high credit limits. However, with a prepaid card, the only funds the cardholder can spend is the money loaded on the card by a designated program administrator. This means that overspending is simply not possible.
2. No Accumulated Debt
With a prepaid card, it is impossible to create debt, since there is no credit attached to the card. This means only the money on the card can be spent, and the card will be declined if the transaction exceeds the card balance. Regular credit cards make it easy to accumulate debt - prepaid cards make it impossible.
3. Transaction Monitoring
Because prepaid card funds are loaded and managed with corporate funds, administrators get full visibility into what cards are disbursed, how much is loaded on each card, and where money is spent. This provides new levels of control and oversight on expense spending, and minimizes improper use of corporate funds.
4. Other Prepaid Payment Applications
Prepaid cards can be used for a wide variety of business functions. Companies aren't just using prepaid cards to rein in corporate expenses, they're also using them for:
- Distributing consumer rewards, rebates and incentives
- Employee rewards and incentives
- Disbursing health and wellness benefits
- Emergency and insurance payments
- Class action settlements and goodwill payments
5. Brand Recognition
With your business name on the prepaid company credit card, users will see and remember the company logo every time they use it.
If the card is being used as a promotional tool for customers, this means they will see your company's logo every time they use it. Prepaid cards with your custom branded design keeps your company name in front of customers, and in their wallets. It's a highly visible and valued touch point.
After all, spending someone else's money is always more fun than spending your own.