You’re facing a tough situation, and getting prepaid debit cards for your employees might be the answer. Your workers need to be able to make purchases without personally involving you in every single transaction. You want to know how they’re spending the company’s dime, however, and you’d ideally prefer to stop them from buying items that aren’t on your list of valid business expenses.
Is it possible to find a happy medium, or are you doomed to waging an endless battle between oversight and payment convenience? Ditching credit cards in favor of a prepaid debit card for employees can transform your business into a more agile enterprise.
Credit cards vs. a prepaid debit card for employees
One of the biggest issues with credit cards is that they make you relinquish control for flexibility. Although they’re commonly accepted as being safer than wads of cash or blank checks, business owners still have to take precautions against risks like overspending, fraud and transaction errors. Unlike a prepaid debit card for employees, these payment methods also carry significant fees for everything from transaction processing to opening new cards and revoking fraudulent charges.
Can you really control a credit card?
Small business consultants advise that if you’re going to furnish your workers with credit cards, then you also need to create a robust, legally enforceable usage policy to go with them. It’s worth noting, however, that even the strictest policies don’t prevent abuses from occurring. Although they grant you the formal justification for punishing violators, you’ll still have to suffer the losses associated with fraud or misuse.
Short of never letting a credit card out of your sight, it’s impossible to control it completely. An employee prepaid debit card, on the other hand, inherently institutes ground rules that accommodate your business model. For instance, you can provide debit cards for employees with specific limits and modify them as you go to ensure that individuals have no more than the funds they need to conduct official business.
Using a prepaid debit card for employees lets you address invalid purchases before they occur: If an employee tries to complete a transaction at a venue that isn’t on your approved list, they’ll be denied. Interestingly, transactions made using employee prepaid debit cards also post to your account immediately, so you get the power to maintain up-to-the-second financial oversight instead of waiting until your bank notifies you to learn about major problems.
Is a prepaid debit card for employees right for you?
Business leaders don’t universally agree on whether companies should give their staff credit cards. Although most acknowledge the advantages, few are ready to throw caution to the wind, especially since fighting fraudulent credit card charges can be a long, costly undertaking. Instead of prepaid debit cardstake a look at a worthy alternative, business debit cards.
With Bento for Business, you can distribute easy payment tools with a clearer conscience and without the need to hand out novel-length usage policies to go with them. Just load these business Visa debit cards for your employees to ensure that they can’t exceed the limits, and use the straightforward mobile app to adjust settings on the fly. This affordable, flexible employee business debit card is perfect for companies whose business plans demand the advantages of credit cards yet require more nuanced governance capabilities.
Using a Bento for Business Visa debit card for employees makes your organization more adept at responding to new challenges. Sign up today for a free 60-day trial or call us at 866.220.8455, and prepare your enterprise for true growth.