Prepaid credit cards can provide businesses with a more cost effective, convenient, and secure form of reimbursing employees. Payment time can be reduced to minutes, and the cards can be used for incentives, rewards, or for settling expense accounts.
Prepaid credit cards are popular with employees too. Individuals are able to use the cards for online shopping and access cash via ATM machines.
A reimbursement strategy needs to be convenient for it to be considered beneficial. Processing is quicker and easier with prepaid cards. distributed as and when required, and without the need to have to write out cheques, ensuring that the process can be completed in just a few minutes, rather than a few days.
Prepaid cards don't require the cardholder to have a bank account; nor do they necessitate the writing, distributing, or cashing of cheques. Bank fees are also reduced, and prepaid credit cards can be used to withdraw cash straight from ATMs, to buy goods online, or wherever Chip & Pin facilities exist.
Reduce Fraud Risk
Lost cheques are a serious security risk for employees, while cheque fraud and cash security issues mean that these forms of physical payment can prove a major risk for employees that receive them. Utilising a prepaid card scheme means a more secure reimbursement strategy.
Prepaid card holders have access to similar protections as credit card holders, including Visa or MasterCard fraud protection, lost/stolen card replacement, and the ability to dispute transactions. And since reloadable prepaid cards remain in the wallet of recipients while they are topped up, there are fewer problems with mail and delivery, since the card only needs to be sent once. Prepaid cards are a secure and safe alternative to cash and cheque payments.
Traditional bank payments, and cheque cashing, can take days to complete. For the employee that is waiting to receive reimbursement for work or for expenses, this means going several days without receiving payment that they are due and owed. Prepaid cards can be loaded by the employer within a few minutes, and the cards can be loaded as frequently as is required. The employer has the power to send payments whenever they need to, and the employee receives the money that they are owed, when they are owed it.
Beneficial For Employers and Employees
Prepaid credit cards offer a fast, efficient, and inexpensive means of making payments of all kinds to employees. As well as being beneficial to the recipient, they offer a number of advantages to the business owner when incorporated into an employee reimbursement strategy.