Corporate Prepaid cards are the best financial solution to incentivising employees and providing them with celebratory bonuses. These pre-funded payment solutions serve as the perfect alternatives to meal cards or coupons.
Prepaid credit cards are often mistaken for credit cards, but they have a fixed prepaid expenditure limit. Most corporate companies have meal cards in place, so buying prepaid cards prove to be more beneficial in the long run.
What is a Prepaid Card (Corporate)?
Prepaid cards look similar to credit cards and have a card emblem and customisable designs. A prepaid corporate card is a payment card with preloaded funds that employees can use for making purchases at different stores.
Prepaid cards are best suited for businesses that do not qualify for credit. Additionally, using them can get rid of unnecessary paperwork.
How does a Prepaid Card work?
Before using a prepaid credit card, one needs to load money onto the card. The card itself does not need linking to a bank account.
Unlike credit cards, one needn’t have a good credit score to obtain a card.
One can only spend up to the available amount on the card, and the amount used in purchases continuously reduces the total.
Many prepaid card services offer two types of cards – single-use and reloadable. Once the balance is exhausted, the company can reload money onto the card.
What are the Benefits of Prepaid Cards?
Controlling Total Expenditure
By depositing before expenditure, one can control their expenses. As a company, prepaid cards serve as better alternatives to company credit cards. Through these cards, the company can control the amount and frequency of money loading. The total amount loaded serves as the upper limit for expenditure.
Makes Employee Reimbursement Easier
Businesses usually take approximately 5-8 days to process reimbursements. This process is usually a long and tedious one that results in employees absorbing costs. Such a work culture is not one that a business would like to promote. Using prepaid cards for reimbursements is a more effective and hassle-free alternative.
Convenience and Safety
Although cash is the most widely accepted form of payment, it is not safe to carry money in large amounts. On the other hand, cheques are safer but very inconvenient and not widely accepted.
Prepaid cards are usable in every shop that offers credit and debit card payments, making them convenient. They can also be reported as lost or stolen, making them very safe to use and operate.
No credit checks
Applying for a credit card triggers a credit inquiry. In most cases, this can affect the business’s credit score. While this may not be a concern for big players, startups require any extra assistance they can receive.
Without credit card applications and additional forms for employee reimbursements, there is less paperwork for employees. By eliminating unnecessary paperwork, employees can focus on crucial matters and are more productive in the long run.
Most prepaid credit cards are customisable, and this makes them perfect for a range of occasions. In an ideal work culture, the environment is social and caring. On celebrations and birthdays, it can be impossible to make every employee feel valued and loved. Customisable cards make it significantly easier to gift and reward employees for their efforts.
Numerous rewards and incentives remain unclaimed because of their specificity. A prepaid card provides its recipient with multiple choices and the flexibility to reap the benefits they prefer.
Most cards also allow corporate companies to print their logo on the card. This branding creates a healthy image for the company and could eventually serve as an incentive for recruits.
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