Prepaid Business Cards for Small Business
Are you worried about the potential misuse or abuse of a company credit card that you issue to employees?
Unfortunately, credit card abuse among employees is not only a problem for small business owners. It’s a problem that major corporations and even government agencies are facing today. For years, our federal government has struggled to provide sufficient oversight over its government credit card programs resulting in widespread abuse.
Recently the Environmental Protection Agency has come under fire for a lack of oversight over its government charge cards. In March, the EPA’s IG said some of the agency’s employees had used their federal charge cards to buy personal items like gym memberships for themselves and family members, expensive dinners and DVDs.
The problem surrounding all of this company-issued credit card abuse is basically a lack of oversight and spending control. So what’s the solution?
The answer is a prepaid business card.
In my opinion it’s the perfect alternative because it provides what most business credit cards for employees do not – the flexibility to control spending at the cardholder level – before the purchase occurs.
With a prepaid business card for small businesses you get to pre-authorize employee spending. It works just like a debit card but with added company controls over funding. You can issue cards to your employees and control how much money you want to have on every card and where the cards can be used.
Think about this for a minute. Let’s suppose you want to provide a company issued card for an employee so they can use it for fuel expenses. You can set the spending rules for the card YES for fuel, NO for retail. This cool feature is available on prepaid business cards such as the PEX Card℠.
Oh, by the way did I mention that there’s no personal or business credit check and no personal guarantee? Now I know you always hear me talk about building business credit but financial tools, such as a prepaid business card, are ideal when it comes to controlling spending on an as-needed basis.
Prepaid Business Card Benefits
Here are ten other reasons why a prepaid business card may benefit your company.
- Instant Funds Disbursement to Employee Cards – You can change the card balance and available spending in real time via your online administration panel.
- Control Employee Spending – Prepaid business credit cards provide online tools that give you complete control in real time. You can set daily spending limits for each card, block cards and even restrict spending in specific merchant categories.
- Monthly Reporting – With monthly statements and custom reports you can better forecast spending and stay on budget.
- Protect Personal and Business Credit – Prepaid business cards like the PEXcard℠ do not pull credit reports on you or your company or require a personal guarantee.
- No Interest Charges – Never worry about accumulating debt, paying interest or dealing with transaction fees.
- Guaranteed Approval – Once your business is verified and confirmed that you have a business checking account you’re approved.
- No Pre-Set Spending Limit – You get full control over funding your prepaid business card right from your company’s checking account. No longer do you have to worry about exceeding credit limits or revolving debt.
- Cards are Acceptable Worldwide – For example, the PEXcard℠ works at millions of locations that accept VISA® debit cards.
- Can be Personalized – Your prepaid business card can include your company and cardholder’s name. How’s that for personalized and professional?
- No Liability – On the PEXcard℠ there’s a VISA® zero liability policy which covers only U.S. issued cards and does not apply to ATM transactions, PIN transactions not processed by VISA®, or certain types of commercial card transactions.
So there you have it. A full proof and effective tool for controlling day-to-day employee spending for things like fuel, building supplies or anything else your business needs employees to buy. Until next time…
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, About.com and All Business.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’,’American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’.