Prepaid cards are growing in popularity across the country and now they are increasingly considered as a payment solution for businesses across a wide range of sectors.
In the current financial climate, a number of businesses are beginning to warm to the benefits of a prepaid card.
It offers the convenience of a credit card, but rather than borrowing money or using an overdraft facility, you can only spend what you pre-load onto the card.
No longer are prepaid cards just seen as a mechanism for consumers with poor credit ratings to hit the shops
There are a number of scenarios where prepaid cards can prove extremely beneficial in the business place.
1) Manage business expenses
Controlling business expenses is one of the biggest challenges for corporate and SMEs alike.
This is particularly important in the current climate, where every penny spent comes under the scrutiny of financial departments.
A business prepaid card is now a credible alternative to credit card spending for many businesses. Firms are attracted to the fact they can load their prepaid card with a budget for expenses, safe in the knowledge that they cannot go over this amount without re-loading the card.
2) Secure spending
In terms of security prepaid cards also make sound business sense. They are not linked to the businesses’ bank account, meaning reduced exposure to banking and identity fraud.
3) Search marketing management
A business prepaid card can also be a great way of managing search marketing campaigns, such as Pay Per Click (otherwise known as PPC) Google advertising. An account can be loaded with budgets for the campaign making it impossible to overspend, keeping clients happy.
4) No interest charges
Unlike a corporate credit card a prepaid card has no interest charges attached. Market leading prepaid cards such as the Pockit prepaid MasterCard® also charge nominal transaction fees, meaning businesses can make significant savings when using a prepaid card with no credit or overdraft facility attached.
5) Alternative payroll method
Prepaid cards are now used regularly for paying staff wages, particularly sole traders and SMEs who employ temporary or part-time staff. With a prepaid card an employer can load the card with the employee’s salary quickly and efficiently. Subsequently the employee can transfer their wages on the card direct into their bank account via BACS, reducing the overheads on cash or cheque processing. It is also much safer than carrying around a week’s worth of wages in cash.
The upshot of this is that prepaid business cards are transforming the way businesses make their payments with no need for an inefficient, resource-heavy paper trail.
