When businesses delegate corporate expenditures to their team members, there is a lot of trust placed on employees to spend funds as intended. Using a traditional business credit card, businesses are put at risk of overspending, mismanaged funds, or fraud. Alternatively, if businesses require employees to purchase goods on their personal credit cards, reimbursing employees serves as an administrative nightmare. Thankfully, prepaid business debit cards serve as a great alternative corporate expense method that can help business owners provide their employees access to funds when their team needs them, while reducing the risks of misused funds or fraud.
“Thankfully, prepaid business debit cards serve as a great alternative corporate expense method that can help business owners provide their employees access to funds when their team needs them, while reducing the risks of misused funds or fraud.“
What is a Prepaid Business Debit Card?
Prepaid business debit cards function as employee spending accounts, where a business can easily add budgeted monthly funds to team accounts. Funding can be split over numerous cards to allow businesses to easily limit and track expenditures by departments or individual employees. Businesses can issue these branded cards using either virtual or physical cards. The cardholder can then use these cards online, in stores or over the phone to make purchases for the company. Prepaid business debit cards are primarily used for business specific employee expenditures such as office supplies, business meals, and team resources.
Benefits of Prepaid Business Debit Cards:
Prepaid business debit cards can prevent unnecessary or unauthorized spending, using limit, frequency, and merchant category restrictions. These features allow businesses to control which stores employees can make purchases at, as well as where, and the number of times the card can be used.
Easily track and reconcile business expenditures, which lessens the administrative burden on expense management. This allows for more control over budgets, which can lead to significant cost savings.
Total Expenditure Oversight
Prepaid business debit cards help managers understand exactly which employee made a purchase, where the purchase was made, and the amount of the purchase. Prepaid business debit cards provide greater overall management of funds. Everything is properly budgeted according to function and need.
“Prepaid business debit cards can prevent unnecessary or unauthorized spending, using limit, frequency, and merchant category restrictions.“
A Case For Prepaid Business Debit Cards – Pet Crunch
Susan is the Accountant for a Pet Food Chain called Pet Crunch. While looking over the company’s recent statement, she found that the Pet Crunch credit card included some expensive, unexplained charges. There was an $80 charge at Emerald Fine Dining, a $200 charge at Staples, and a $1000 charge at an unknown merchant. Susan had no idea which employee had gone to Emerald Fine Dining, so it was unclear whether the charge was for a client meeting or for something personal. Then, Susan had to go around asking who had visited Staples to find out that Alison bought a new label maker with 40 sheets of labels, for the accounting department. Finally, Susan had to send out a company wide email asking if anyone knew where the $1000 charge originated from, to find out that it was spent on a new Marketing Software. Realizing a lot of the expenses were unnecessary or unbudgeted, Susan paid the bill and decided to look into using prepaid business debit cards.
Since then, Susan has switched to using prepaid business debit cards for the Marketing, Operations, Finance, HR and Sales departments at Pet Crunch. Each account has the department’s allocated monthly budget and automatically reloads at the beginning of each new month. This ensures that the Marketing team for example, can only procure software if it fits within their budget, or they receive special approval. As well, Susan can now use MCC restrictions to ensure that the Pet Crunch debit cards can only be spent at pre-approved merchants, to eliminate the need to search for the purchaser. Overall spending decreased by 20% and Susan now has more time to focus her limited time elsewhere.
Set up Prepaid Debit Cards for Your Business Today
Using Berkeley Payment’s platform, your company can create your own branded prepaid debit cards, whether you are a small business or large enterprise.