According to a study conducted by the GBTA, business travel spending has grown by 7.1 percent in 2018 and can reach a total of $1.7 trillion by 2022. This shows that a major part of the firm’s funds are invested in travel expenses. That said, it is important to always stay on top of your travel and expenses expenditure.
Fortunately, this is where a prepaid card for business can come in handy. A prepaid card for business can help you manage your travel and expenses effectively. Two of the most common challenges of handling travel expenses are minimal control over employee spending and difficulty identifying fraudulent charges.
One of the foolproof ways to take control of the situation is to equip employees with a prepaid card for business. Prepaid cards can be preloaded with a set of funds and can be used by employees to make purchases. Prepaid cards can also be used for point-of-sale payments, online payments, and ATM withdrawals.
It is also easier for you to control overspending at the source to prevent non-compliant transactions. Prepaid cards can also be used to limit spending. Other ways prepaid cards can be used to manage travel expenses include:
They can be used to increase control over expenses
Firms that do not use prepaid cards either provide employees with credit cards or expect them to use their own personal credit cards to cover their travel expenses. Unfortunately, company credit cards often have high credit limits and often end up being misused by employees.
However, if employees use their personal credit cards to cover their own expenses and will just have things reimbursed. By requiring them to always submit receipts, you will be adding to their burden. Some employees may not have credit cards and if they do, their credit limits might not be enough to cover the expenses of their international trip.
Using prepaid cards can also help you save costs significantly since they won’t allow overdrafts and you can set fund limits using the cards. Limits can be set on daily, weekly, monthly, or yearly depending on the limit set for different employees.
When you use a prepaid card, employees won’t have to spend their own money and you will be relieving them of massive burden. It also becomes easier for your finance team to track expenses in real time while employees are still on business trips. This can give you great control over the spending of your employees.
They can help minimize the company’s dependency of cash
Travel programs that involve cheques and cash tend to be slow and inefficient. For employees, carrying large amounts of cash in one go can be risky. Losing cash while on a trip can also mean losing funds for the entire trip. If outside the country, it can be difficult to replace them or get access to money while overseas.
Fortunately, prepaid cards can be a smart alternative to cheques, cash, and receipts as they are safe, flexible, and can reduce one’s dependency on cash without needing to spend time coordinating with banks. Using a prepaid card can also spare your employees from all the trouble of using receipts.
Prepaid cards also offer a certain level of protection against loss. If an employee loses their card, they can have it restored easily or they can ask to be issued a new card. When you incorporate prepaid cards in your travel system, you can provide funds to your employees instantly.