A corporate credit card is an essential part of business operations, whether the company is a small start-up or multi-national corporation. While most businesses use credit cards, not all of them have the same financial requirements, which is why many businesses use Prepaid Visa cards as a practical way to keep corporate costs in check. Prepaid cards come with several benefits that should be considered when looking into a new or improved corporate expense strategy.
1. Prevent Overspending
Traditional credit cards come with the risk of reckless spending that hails from high credit limits. With a corporate prepaid Visa card, however, the only funds the cardholder can spend is the money that was pre-loaded on the card. This simple feature prevents irresponsible or negligent overspending.
2. No Accumulated Debt
Since there is no credit attached to prepaid cards, they also prevent the creation of debt. This means that only the balance available on the card can be spent, and if someone wants to spend more, the card will be declined. While regular credit cards make it easy to overspend and accrue debt, prepaid cardholders will not have to deal with that predicament.
3. Ability to Monitor Transactions
Because prepaid Visa cards will be loaded with corporate funds, administrators will get full access to see what cards are disbursed, how much is loaded on each card, and where money is spent. The ability to monitor and manage expense spending in real time provides new levels of control and oversight for administrators and managers, while also minimizing improper use of corporate resources.
4. Supplementary Prepaid Applications
Prepaid cards can be used for a wide variety of business operations. After all, companies aren’t just using prepaid cards to cut back corporate expenses, they are also using them for:
• Dispensing consumer rewards, rebates, and incentives
• Employee rewards and incentives
• Distributing health and wellness benefits
• Emergency and insurance payments
• Class action settlements and goodwill payments
5. Brand Recognition
Adding your business name or logo to the prepaid company credit card is a highly visible and valued touch point. If the card is being used as a promotional or marketing tool on the consumer side, cardholders and customers will see the company logo every time they use it, which can help build brand recognition and loyalty. Prepaid cards branded with your custom design or logo not only keeps your company name in front of customers, it keeps your business in their wallets. After all, spending someone else’s money is always more fun than spending your own.