Company credit cards can make it much easier for you and your employees to conduct business. When you have cards that you can give to your employees, they can use them to purchase the things that your business needs without having to submit request forms, have checks signed or to use petty cash. Issues can arise if you hand out cards to your employees, however. It is an unfortunate fact that many businesses suffer substantial losses that are caused by employees abusing their cards. There is a good alternative that you can choose that can help you to prevent thefts, control costs and have the flexibility that you and your employees need.
Company credit cards vs. business debit cards
In order to get approved for company credit cards, your credit will be checked. If your business is not yet established or you have blemishes in your credit history, it may be difficult to be approved. Credit cards also often charge high rates of interest on your balances and may charge stiff annual fees. Company credit cards may be abused by the employees who have them. Some workers will make personal purchases with their cards or withdraw cash with them.
The business debit cards at Bento for Business are different. Since they are debit cards, your credit will not be checked. The cards do not charge interest on your balances since the money on the cards is yours. Instead of high annual fees, you will simply have to pay a low monthly fee of just $29 for up to 10 cards. You can have your employees’ names placed on the cards that you give to them, and the cards are Visas. This makes it much simpler for them to make purchases whenever and wherever they need to do so.
The business debit cards also let you limit the types of spending that each employee can complete with his or her card. For example, if you have a fleet of vehicles and need to let your employees purchase gas, you can limit the allowed spending on each card to pay-at-the-pump gas purchases only. If the employees try to buy anything other than gas with their cards, the transactions will be immediately declined. This feature allows you to prevent employee theft from happening before it ever starts.
How do the cards work?
After you choose the number of cards that you need, you deposit funds into one central account. You then allocate the amount of money to make available on each card. Like banks, our accounts are insured by the FDIC for up to $250,000, and we use the same type of high-level encryption technology to keep your money and information safe. You will be able to review the spending that is happening on your cards by logging in to your online platform. The cards can be turned off instantly if you see a problem. Your business debit cards are also reloadable, allowing you to add money when it is needed.
Unlike with many company credit cards, your employees will not be able to withdraw money with their cards. If an employee leaves his or her job, you also won’t have to worry about retrieving the card since you can simply turn it off by clicking a button.
Start your free trial with Bento for Business today
Bento for Business is dedicated to helping small businesses to control their employee expenses while also preventing fraud. We offer 60-day free trials so start yours now by filling out our form in under a minute. You can also call us at 866.220.8455.