Prepaid Card for Business: How to Use it to Manage Employee Travel Expenses

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.

The Rise of the Mighty Reloadable Prepaid Cards

prepaid cards in Singapore

In today’s modern, fast-paced, and technology-driven world, people have it easy compared to many decades prior thanks to awesome and helpful inventions and technology breakthroughs.

For instance, many years ago, people always had to pay for almost all of their purchases with cash. Nowadays, cashless payment transactions have become the norm. In other words, people now use plastic cards like debit, credit, and reloadable prepaid cards to pay for the majority of their purchases.

That being said, it is also safe to assume that it has become very common for people to use credit, debit, and reloadable prepaid cards for ATM withdrawals as well as purchase transactions, regardless if it’s online or otherwise.

Currently, plastic cards like the reloadable prepaid cards have become a staple in the day-to-day transactions of today’s modern man.

The Impressive Rise of the Mighty Reloadable Prepaid Cards

While they are the latest addition to the growing plastic card family, reloadable prepaid cards have easily earned their rightful place in the hearts (and wallets) of many people nowadays.

Thanks to their unbeatable benefits, reloadable prepaid cards have also experienced a gargantuan rise in both usage and popularity. It’s also safe to assume, it has shown no signs of slowing down.

If you are like many people, it is highly likely that you’re also considering getting a reloadable prepaid card if you don’t have one yet. If you’re not really familiar with this amazing and ingenious financial tool, the following basics should help you get to know it a tad bit more.

You won’t need to go through background and credit checks just to get one.

Without doubt, background checks are time-consuming, tedious, and just downright annoying. However, they are considered an integral part of both debit and credit card applications. The same rings true for checking and savings account applications.

Not only that, apart from scrutinising your background and credit histories, some issuers of debit and credit cards will also take into account your employment history as well as other personal information before their applications are approved.

When issuers discover you were able to make some undesirable financial mistakes in the past, you can kiss your application approval goodbye. Fortunately, getting a reloadable prepaid card is the exact opposite—fast, easy, and straightforward.

You can use it to help you curb overspending and manage your money properly.

Those who use credit and debit cards often find themselves in a mountain of debt if they lack the discipline and control over their spending. They can also end up paying for costly monthly interests, fees, and other charges if they are not careful with their spending.

While prepaid cards do have some transaction fees as well, they are often very minimal compared to their counterparts. What helped prepaid cards earn a really massive following is the fact that they’re not only easy to obtain, they are also very helpful for those who want to be on top of their spending.

For those who do not know, transactions using prepaid cards are limited to the balance that’s available on the card. That means as soon as the balance has been depleted, the spending also stops automatically.

You can use it to pay for online transactions.

There’s no denying online shopping has become almost the norm. And this is not really surprising as online shopping is just over the top in terms of ease and convenience. For starters, you won’t have to leave the comfort of your office or home.

With just a few mouse clicks, you can choose what you want, pay for it using your prepaid card, and wait for the items to be delivered right at your doorsteps. Now, that’s convenience, value, and ease you can’t just resist!

How Your Business Can Benefit from Using Prepaid Card for Business

prepaid cards in Singapore

Nowadays, prepaid cards have become the consummate financial tool for those who have issues managing their spending, those who have bad credit standing, those who have no access to banks, and those who are trying to curb overspending.

However, the appeal and use of prepaid cards is no longer limited to consumers alone. Thanks to their unbeatable features and exciting benefits, prepaid cards have also made their mark in the business world.

Prepaid cards for business have been the go-to option for those who would like to make their transactions quick, seamless, and hassle-free. Today, prepaid cards for business are used to easily allocate budget for logistics and supplies, for employee fare and meals, and for travel and emergency funds, among others.

So what is it with prepaid cards for business that has endeared them to the business world? We’ll take a closer look at all the benefits of prepaid cards for business in this article.

Why Prepaid Cards for Business Are Ideal

●    They are easy to use since they have no tie-ups with any banks

●    They can be reloaded with money anytime

●    They can help warrant company spending is within the budget you have identified. It can also help ensure spending as well as monitoring of transactions is a lot easier

The Enticing Benefits of Prepaid Cards for Business

There’s no denying prepaid cards for business offer benefits that are hard to beat. Some of the most remarkable ones include:

●    They can be used to help regulate and control expenses so the business stays efficient and profitable.

●    They can be obtained without any hassles and can be reloaded with funds just as easily.

●    They are not associated with any banks so no credit checks are required during application. There’s also no need to submit financial documents or personal data.

●    Since no credit capabilities are involved, transactions using prepaid cards for business won’t affect credit in any way.

●    Since they work pretty much like the other plastic cards, there is no learning curve involved. They’re about as easy and straightforward to use as credit or debit cards.

●    Just like other plastic cards, prepaid cards for business can also be used to make online purchases easily.

●    Prepaid cards for business can also be used to separate business from personal expenses. The ability to keep expenses separate from one another is important to manage work-related funds more easily.

●    With a prepaid card for business, keeping tabs of employee spending is a lot easier. In addition, setting limits and monitoring expenses is also a lot easier.

●    For business owners, using a prepaid card for business can also help ensure they are spared from the risk of having employees overspend or mismanage company funds.

●    Prepaid cards for business can be used to easily segregate money for supplies, meals, and whatever else the business needs.

●    With a prepaid card for business, monitoring every transaction can be done easily and conveniently. This can be very helpful especially for those who want to have a detailed report of every spending or transaction.

●    In terms of fees, users would be delighted to know they are way lesser compared to other plastic cards like credit or debit cards. Unlike other plastic cards like credit cards, there is no risk of accumulating huge monthly interest, fees, and other hidden charges.

●    Unlike debit cards, there’s no need to be mindful of paying for overdraft charges.

Undeniably, using prepaid cards can provide countless benefits. It is especially beneficial for those who would like to monitor their transactions and ensure it is within the identified budget.

As a general rule of thumb, it would be wise to use a prepaid card for business as a supplemental card that will not only help curb overspending but also make tracking of any spending very easy.

New to Reloadable Prepaid Cards? Keep These Essentials in Mind

Reloadable prepaid cards are also known as general purpose reloadable cards. Over the years, they have become more and more popular thanks to the exciting and enticing benefits they offer. 

Unlike other plastic cards like credit and debit cards, reloadable prepaid cards are not linked to any savings or checking accounts. With that said, they are considered a lot safer compared to the other two.

What makes reloadable prepaid cards even more endearing to many consumers is they can easily be obtained. That means, you don’t have to go through the hassles of filling out registration forms or submitting personal and financial documents just to get ahold of one.

In addition, if you take into account all the unbeatable and peerless features and benefits reloadable prepaid cards offer, it’s easy to see it’s all the card you’ll ever need. You can use it for several purposes and you won’t need to carry other plastic cards if you already have one.

However, while reloadable prepaid card users have grown tremendously over the years (and have not shown any signs of slowing down), not many people can really claim to know their reloadable prepaid cards inside out. 

For instance, not everyone is aware that there are also international prepaid cards that frequent travelers consider their ultimate travel companions. Unlike the typical prepaid card that’s designed for local use, international prepaid cards come with a few other features that are beneficial for globetrotters.

That being said, the importance of knowing all the basics about your reloadable prepaid card cannot be overstated. For starters, you won’t be able to fully enjoy all the features of this amazing financial tool as well as all the benefits they have to offer when you don’t even know the essentials.

To help you out, here’s all the basics you need to know about this one-of-a-kind tool:

Some reloadable prepaid card transactions have corresponding fees/charges.

When you use your card and notice a deduction in the balance after, it’s safe to assume you were deducted a fee for the transaction. Since prepaid cards are not linked to savings or checking accounts, many assume transactions using the card is also free.

The good news? Compared to other plastic cards, fees/charges when you use your prepaid card is minimal. The thing is you just need to be aware of these charges so you know if the deductions are correct.

In line with this, consider it best to check with your prepaid card issuer in terms of their fees/charges for transactions. If your issuer has a website, check their website out so you’ll know the charges as well as other things you need to be aware of when using your card.

Most reloadable prepaid cards are accepted by many merchants and establishments.

This is great news for those who intend to use their prepaid cards in various establishments like department stores, restaurants, and boutiques. What’s even more amazing is prepaid cards can also be used for online purchase transactions as well.

That means you are spared from leaving the comforts of your home and office just to purchase what you want. Just ensure your prepaid card has sufficient balance and you can already use it to purchase any items you want.

Online transactions are not only secure, they are also highly convenient and practical. Everything is done in just a few minutes and you won’t have to get dressed or interact with other shoppers or sales people just to purchase what you want.

Prepaid cards can also be used for withdrawal transactions.

This is something not many people are aware of. But yes, you can also withdraw money using your prepaid card. Most prepaid cards are compatible with most ATMs so withdrawing money is always a breeze.

It is also important that you are aware of your card’s daily spending limits (if any) so you can accurately plan your cash withdrawals and online purchases. Check with your issuer regarding those and visit their website for other essentials and instructions.

Prepaid Card 101: Understanding Prepaid Cards

The best prepaid cards are so similar in a lot of ways to debit and credit cards that many people often mistake one for the other. However, unlike credit or debit cards, the best prepaid cards are not linked to savings or checking accounts.  

Before prepaid cards can be used, money needs to be loaded on the card first. When used for purchase transactions or ATM withdrawals, the money is immediately deducted from the balance that’s available on the card. Once all the balance in the card has been depleted, cardholders have the option to load money on the card anytime they want.

For many, prepaid cards are considered the best alternative to cash, with the money loaded on the card in advance before it can be used. Many people also view prepaid cards as the consummate option for those who are unbanked or those who have poor credit history or no credit history yet.

Understanding Prepaid Cards

In a way, having a prepaid card is very similar to carrying actual cash minus all the risks involved. In other words, you need not worry about misplacing or having your money stolen since they are safely kept in your prepaid card.

If you’ve heard of prepaid cards but not familiar with how they are used, you’d surely find this article of massive value. Below are some prepaid card basics you need to know:

Regardless if you’re a teenager trying to learn great money management skills or someone with bad credit, you’d benefit from using a prepaid card. With a prepaid card, you can practice responsible spending habits as you go along.

As mentioned earlier, using a prepaid card is one of the best ways to carry money around wherever you go. With your money safely credited to your prepaid card, you won’t have to worry about losing your money or having shady people steal them from you.

Just like other plastic cards, prepaid cards can also be used for purchase transactions and ATM withdrawals. What’s even better is they can also be used for online transactions. That means you can easily purchase whatever it is that you want without having to leave the comforts of your home or office.

Those who are looking for ways to curb overspending or stick to a budget, a prepaid card can be a truly beneficial ally. Unlike credit cards, prepaid cards don’t come with credit capabilities. In other words, as soon as the balance on the card has been depleted, the spending also stops automatically.

Fortunately, you can use the card right away as soon as money has been successfully loaded onto it. Loading money on your prepaid card is both easy and straightforward. For instance, you can load money onto your card through secure online portals.

Prepaid Card Upsides

Why do people love prepaid cards? Primarily because they come with the following enticing benefits:

Security. Aside from keeping your money safe, prepaid cards can also be ideal for online transactions. While it would be great to be able to use your card for online purchases, what makes prepaid cards even better is they won’t put any of your personal details at risk even if you do online transactions.

Habit forming. Some people prefer to practice with their prepaid cards prior to using credit or debit cards. Undeniably, since prepaid cards don’t come with credit capabilities, it’s easy for you to develop responsible spending habits.

Card for the unbanked. As mentioned earlier, people who don’t have access to banks for one reason or another have a great alternative in prepaid cards. What’s even wonderful is you can easily obtain one without going through all those time-consuming and stressful bank applications.

Prepaid Cards: The Viable Alternative to Bank Accounts

If you’re not familiar, you can easily mistake the best prepaid cards for other plastic cards. This is not surprising however since prepaid cards share a lot of surface similarities with credit or debit cards.

In addition, the best prepaid cards also share some of the features that make other plastic cards enticing. For instance, just like a debit or credit card, prepaid cards can be used to pay for hotel reservations, car rentals, hotel bookings, and other online purchases.

What’s even better is obtaining a prepaid card is easy and hassle-free. In fact, even if your credit standing is less than desirable, you can still easily get your hands on a prepaid card if you so wish.

Best Bank Account Alternative

A whopping 68 million people don’t have access to a bank account. And that’s in the United States alone. Fortunately, thanks to prepaid cards, they can still perform some of the typical transactions other people with bank accounts or other plastic cards can do like purchase transactions (online and through merchants) as well as ATM withdrawals.

How Prepaid Cards Work

Before a prepaid card can be used for any transactions, money has to be loaded onto the card first. Purchase transactions as well as ATM withdrawals you can do will depend on the balance available on the card. The amount of purchase transactions and withdrawals will also be deducted directly from the balance that’s available on the card.

That means if the amount of your purchase or withdrawal is greater than the balance available on the card, your transaction will be declined. If the balance is insufficient for your transactions or if your balance has been fully depleted, you need to load money onto the card before you can use it again.

Managing your prepaid card is more similar to managing your checking or savings account than managing a credit or debit card. Just like a savings account, you won’t have to worry about finance charges, late payments, due dates, or minimum monthly payments when using your prepaid card.

Also, unlike credit cards, you don’t have the option to “borrow” money from the issuer. Your spending limit is limited to whatever balance is available on your card. When you use a prepaid card, you are also spared from revolving debt balance, costly interests and charges, and putting your credit score at risk.

In some ways, prepaid cards also resemble debit cards since all transactions are deducted from the available balance. Any amount spent or withdrawn is not deducted from any bank account but from the available balance on the card.

Ideal Prepaid Card Users

Prepaid cards are ideal for many people especially those who have no access to banks. For instance, parents who want to teach their children how to manage their money accordingly use prepaid cards. Some parents provide prepaid cards to their children and load whatever money they need on the card so they also won’t have to carry physical cash with them.

Those individuals with bad credit can also get their hands on a prepaid card if they want as their credit standing won’t be looked into. In addition, a prepaid card is the best option for those who don’t want to put up with the hassle associated with bank account or credit card applications.

When you apply for a prepaid card, you are not required to submit any financial or confidential information. This is especially helpful if you don’t want to put any of your financial or personal information at risk of getting compromised. Also, if you’ve made financial mistakes in the past like not paying your credit card bills on time, your chances of getting a card is slim to none.