Nowadays, a new and ingenious financial tool has earned quite a following in the business world—prepaid card for business. While dramatic, the popularityprepaid card for business are currently enjoying is not really surprising.
If we look into all the benefits this amazing financial tool offers, it’s easy to see why they’ve earned so much following in such a short amount of time.
While once viewed as a beneficial financial tool only consumers have easy access to, prepaid cards have slowly made their way and dominated the business world.
Which brings us to the following key questions: what exactly are prepaid cards for business? What makes them so popular? And how exactly do they work? Discover all the answers and more in this quick and comprehensive guide!
Prepaid Cards for Business in a Glance
Since they share several surface similarities, many people mistake prepaid cards for business for the the typical debit and credit cards. If anything however, that’s often where the similarities end.
Prepaid cards for business have a few distinct differences that clearly sets them apart from the typical cards used nowadays.
For starters, those who issue credit cards put heavy consideration on the financial status of the applicant as well as the business profile before considering them qualified.
The exact opposite is true as far as obtaining a prepaid card goes.
If you’ll apply for a prepaid card, you won’t have to provide any financial documents. You are also spared from all the hassles associated with tedious and time-consuming credit and background checks.
While having access to really high credit limits can have its upsides, it can also have massive downsides. Case in point: if your business has a credit card with a really high credit limit, it also becomes very easy for employees to overspend since they won’t be shelling out cash to pay for the purchases.
With a prepaid card on the other hand, money has to be loaded on the card before it can be used. This gives business owners one very helpful feature—it puts them in total control of how much they’ll be spending.
In addition, transactions using prepaid cards will be limited to the balance that’s available on the card. That means no overspending when you can’t afford to!
Many businesses are quite delighted to know that obtaining a prepaid card is both easy and straightforward. Since it does not have any credit capabilities, you don’t need an impressive credit and financial standing just to get one.
Also, businesses who are using prepaid cards have the option to have the card personalised using the company colours and logo. They are also given the luxury to choose if they would prefer a generic prepaid card or one that’s issued only to a few staff.
Without doubt, the flexibility prepaid cards offer is one of the main reasons businesses have ditched their other plastic cards. Another benefit prepaid cards offer that many people consider too enticing to resist is the ability to load money at their convenience.
Once the balance has been depleted, users have the option to load money onto the card again or delay it at a later time.
Since spending is limited by the balance available on the card, it’s a lot easier for prepaid card users to stick to the budget they have set for a specific period.
For instance, if the card is used to pay for miscellaneous purchases, cardholders can easily look into their spending patterns so they’ll be able to budget the money until a specific time.
Prepaid cardholders also have the option to load money onto their cards at any time that’s convenient and ideal for the business—whether it’s weekly, monthly, quarterly, or daily, you call the shots!