What is a Visa card for business?
Visa is the top card processor in the world. It is no wonder that businesses prefer Visa cards to meet their daily spending needs. Visa uses a global processing network that can process 65,000 transactions per second, and Visa cards are accepted in more than 200 countries and territories and by more than 46 million merchants around the world.
Businesses are able to use Visa cards to complete transactions and to make payments wherever Visa is accepted. If the cards are Visa credit cards, the card charges purchases to an attached line of credit. Debit cards subtract purchases from business’ deposit account balances.
The fact that Visas are so widely accepted makes them an ideal choice for businesses. Companies that use Visas can feel confident that they will be able to use them at most locations around the world.
Who uses a Visa card for business?
Companies of all sizes may use a Visa card for business. The type of business and its size does not matter. All businesses can benefit from using a Visa card for business as a payments solution.
A Visa card for business may be a credit card or a debit card. Both types of cards have their unique advantages and disadvantages. The type of card that you choose will depend on your needs as well as some other factors.
Why might a business use Visa business credit cards?
There are several reasons why a company might use a Visa credit card for small business. Credit cards can help businesses to build their business credit scores. If companies always make on-time payments for the purchases that they make with their credit cards, companies may eventually become eligible for other types of business financing demonstrating that they are good credit risks.
Some businesses also use credit cards to help them to get through periods during which they experience cash-flow shortages. While credit cards might be beneficial to address short-term cash flow problems, they are a terrible way to obtain financing for long-term issues.
Credit cards may also offer rewards to businesses. The cards might come with offers that are specific to companies such as discounts on common types of business purchases. Finally, credit cards may help business owners to keep their personal and business expenses separate.
Why might a business use a business Visa debit card?
Instead of using credit cards, a company might instead decide to choose a debit card from Visa instead. A debit Visa card for business may offer multiple benefits that are not available with credit cards. A Visa card for a company that is a debit card may come with built-in expense management software that allows you to set custom limits on the cards that you give to your employees.
Businesses might also choose debit cards because they do not add debt. Some companies are debt-averse, and debit cards allow the employees to spend the company’s money rather than charging purchases to a revolving credit line. Since the cards are not credit cards, businesses and business owners do not have to submit to credit checks. Finally, using debit cards can allow businesses to have greater spending flexibility and enhanced controls.
Business Visa credit card vs. debit card
When you compare a Visa business credit card to a business debit card, there are a few key differences. To obtain a credit card for your business, you will likely have to submit to a credit check along with your company. You must submit a credit check because many card issuers require that business owners give personal guarantees for the transactions on their cards. If you have marks on your credit, or your business is relatively new, you may not be eligible.
Credit cards may also charge high annual fees along with high rates of interest. If you carry your balances over from month to month, you may find that your debt quickly grows. Credit cards may also not have the types of expense management features that debit cards offer.
A Visa card for business that is a debit card will not require you or your business to submit to a credit check. The transaction costs are subtracted from your own money so that they will not add to your debt. Some of the best business debit cards do not charge high annual fees, and your expenditures will not incur interest charges.
What are the benefits of using a Visa credit card for your business?
When you are reviewing card offers, there are a few benefits to using a Visa credit card for your business. A Visa credit card for small business can help to build your credit and to keep your business and personal expenses separated. It can also help you to reduce or eliminate paper-based payments processes so that you can reduce waste.
If you find that your business is in a temporary pinch, a Visa credit card can help you to get past the bump. Visa credit cards may also offer rewards for businesses along with discounts that might make them more attractive.
How a Visa business card can help you keep a better eye on purchases
While some small businesses might believe that they are immune to the risk of business fraud, it is a very pervasive problem that affects millions of companies. According to CNBC, businesses lose around $50 billion to fraud every year
Using a business Visa card can help you to more tightly manage business expenses. Some cards allow you to set spending restrictions that can eliminate unauthorized purchases. For example, you can restrict the use of the cards to specific purchase categories and be used only to buy goods from your preferred suppliers. You can also turn the cards off when your employees go home for the day and turn them back on when they return. The cards allow you to set different spending limits on each card that vary according to the needs of your employees and their jobs.
Ways that a Visa debit card for business can help you to manage employee expenses better
A prepaid Visa card for companies may help to limit spending, but a debit card can offer more robust expense management features. The cards come with built-in expense management software that allows you to set any of a number or robust spending controls.
You can restrict the cards use to specific times. For example, you can turn a card on to complete a single transaction and then turn it off again until you need to use it again. You can also use your expense policy and bake it into your cards. You can restrict the cards to be used to buy goods from your preferred merchants, and you can restrict entire purchase categories. Finally, you can determine the overall limit on each card as well as set daily spending limits that can differ from employee to employee.
Visa debit cards for business can be a great option
A Visa debit card for business can offer multiple benefits. You can eliminate traditional processes such as reimbursements that are rife with fraud and waste. When companies rely on reimbursements, their employees may grow resentful about having to wait to be repaid the money that they have spent out of their pockets. Some employees may submit padded reimbursement requests or claim that items that they bought for themselves were for the company.
Other benefits include better expense management and the ability to bake in your expense policy with your cards. You can train your employees on how to use the cards so that they understand your expectations and how to use them. Employees may also have better morale because they can buy the items that they need to do their jobs without having to complete reams of paperwork and go through a lengthy process.
How to try a Visa card for your business
The Visa debit cards from Bento for Business come with expense management software that simplifies and streamlines expense controls, payment processing, and expense management. You can restrict the cards by location, time, amount, and purchase category. The cards can be integrated with your accounting software so that the transaction information automatically flows into your program, eliminating data entry errors and allowing you to see what is happening in real time.
The software allows you to turn cards on or off at any time by clicking or tapping a button on your smartphone screen, tablet, or laptop. Bento has earned hundreds of great reviews from its thousands of customers. There is a free 60-day trial so that you can try the cards before you decide whether to buy them. To learn more, talk to a customer service representative by calling 866.220.8455.