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.

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.