• Home
  • Blog
    • Resources
    • Business Partner Magazine Archive
  • About Us
    • Cookie Policy
    • Disclosure Policy
    • Privacy Policy
    • Terms of Website Use
  • Contacts

Business Partner Magazine

Tips and advice for entrepreneurs, start-ups and SMEs

  • Business Success
  • Marketing
  • Finance
  • Employees
  • Technology
  • Start-up
  • Productivity
  • Communication

How Prepaid Cards Could Work for Your Business

January 30, 2020 by Contributed Post

Click here to get this post in PDF

Too long to read? Enter your email to download this post as a PDF. We will also send you our best business tips every 2 weeks in our newsletter. You can unsubscribe anytime.

Enter your NameEnter your Email Address
Person making payment with prepaid card

Giving your employees access to expenses is essential.  They may need to make small company purchases, independently, they may need to travel.  They need autonomy, a business simply can’t operate if everyone is constantly asking permission for every single purchase made on the company’s behalf. 

Traditionally, employees were expected to pay for travel, food and accommodation themselves, retain all the tickets and receipts, submit them to a finance department and then wait an eternity while the finance department tried to make sense of them before, ultimately reimbursing the employee via their payroll.  If you are still operating your business in that way, good luck because no self-respecting millennial is going to put up with that system for long.  It’s unfair on the employee and time-wasting for all concerned.

A popular alternative to the problem of expenses has been to give employees access to a company credit card.  This is not how credit cards were designed to be used. It gives employees access to expenses but also carries the implicit message: ‘spend what you like, no one person is accountable,’ and if the card goes missing you have to lock down the entire account, sharpish.

A prepaid card is a fintech solution to the management of company expenses which makes life easier for both employer and employee.  A prepaid card is loaded with a specific amount of money, which means that you can give differentiated budgets to all staff, from the most junior to the most senior.  Staff can then use the card just as they would a conventional credit card, but only within the constraints of their budget.  The card can even be loaded with foreign currency, enabling you to lock in the most preferential exchange rates in advance of the trip. 

For the employer, the beauty of the system is that it provides a complete real-time overview of each employee’s expenditure, either via desktop software or a mobile app.  The employer can impose specific spending limits, under headings such as food or transport, can top up budgets or freeze a card without the need to lock an entire account.  The cards are not linked to a bank account, so all that information that you potentially divulge to hackers with a conventional credit card, billing address, card number, expiration date, security code, is unavailable, the card cannot be traced.

Prepaid cards are far more convenient for your employee.  No longer is there the need to assiduously collect and collate receipts and tickets, everything can simply be photographed and uploaded via the app. The software is easily linked to payroll and accounting systems like Xero, so all that time your accounts department used to waste can be put towards more productive and profitable ends.  Employees are able to carry out their work on behalf of the company without being financially inconvenienced and because they are personally accountable, they are likely to be far more judicious in their use of company expenses.

You may also like: Tips on Finding the Best Credit Card for Your Needs

Filed Under: Business Success, Finance Tagged With: business success, finance

Trackbacks

  1. 9 Ways to Outsmart Debt Collectors - Business Partner Magazine says:
    January 31, 2020 at 6:46 pm

    […] You may also like: How Prepaid Cards Could Work for Your Business […]

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

Disclosure

We earn commissions if you shop through the links on this page.

Recent Posts

  • How to Protect Your Business Against Cybercrime in 2023
  • Benefits and Risks of Using a Real People Finder
  • Interview With Asif Ali Gohar on the Hurdles of Starting a Business So Young
  • Navigating the Complexities of 18-Wheeler Settlements: A Lawyer’s Perspective
  • How to Effectively Manage Your Business for Optimal Results

Categories

Archives

Digital Marketing Agency

ReachMore Banner

Tags

Accounting apps bitcoin brand business growth business skills business success communication cryptocurrency Customer Service Data design ecommerce Efficiency employees Featured Article finance finances Health and Safety infographic insurance Investing investment legal legal services legal tips Management Marketing marketing strategy Outsourcing productivity property Real estate sales security SEO Social Media software starting a business startup Technology Trading Training website workplace

Disclosure

We earn commissions if you shop through the links on this page.

Digital Marketing Agency

ReachMore Banner

Business Partner Magazine

Business Partner Magazine provides business tips for small business owners (SME). We are your business partner helping you on your road to business success.

Have a look around the site to discover a wealth of business-focused content.

Here’s to your business success!

Copyright © 2023 - Business Partner Magazine·