Reasons to Use a Prepaid Card for Business
Nowadays, using prepaid cards has become a common practice among businesses regardless of niche. It’s not surprising to also find businesses of different sizes—from start-ups, to small and medium enterprises (SMEs), and established billion-dollar firms to use prepaid cards for business.
Prepaid card’s meteoric rise in the business world is unprecedented. However, if you look into the amazing benefits prepaid cards for business offers, it’s easy to see why. For starters, prepaid cards for business provide ease and convenience that other plastic cards like credit and debit cards can’t match.
Apart from the unbeatable convenience and ease prepaid cards offer to businesses, they also make it possible for cardholders to easily carry out common financial transactions (i.e., purchase transactions and ATM withdrawals) without any of the hassles associated with bank-related transactions.
How Businesses Can Benefit From Prepaid Cards
For the uninitiated, prepaid cards offer peerless benefits. Prepaid cards are also loaded with exciting features that prepaid cards can take advantage of. Below are some of the ways businesses can take advantage of prepaid cards:
Purchase of supplies and other business needs from overseas vendors.
Nowadays, purchasing items and supplies from outside the country has become commonplace. When businesses order and shop from merchants overseas, payments are often done through network partners or bank transfers. Fortunately, businesses are no longer limited to a few options when it comes to this.
Prepaid cards can now be used to pay for purchases that are carried out online. While prepaid cards are not linked to any bank accounts, most of them have tie-ups with payment networks that are honored by online merchants. In other words, prepaid cards have become a secure option to pay for online services and transactions.
Undeniably, running and managing a business will require external obligations. These external obligations can include paying for utilities. This is important to help ensure that all the aspects of the business will continue to run as smoothly and seamlessly for as long as possible.
However, since it is not always possible to pay for every transaction in cash, prepaid cards can definitely come in handy. It is also reassuring to know that prepaid cards can also be used if you want to make scheduled payments. This allows businesses to enjoy the ease of making scheduled payments for their invoices.
In addition, many utility bills are also associated with various payment networks that accept and honor prepaid cards. Many vendors and lenders also opt to receive payment through payment networks as it is way easier to track and progress. Prepaid cards can also be used to streamline payments so transactions are easy to manage.
Oftentimes, it can be difficult for small businesses and enterprises (those with less than 10 employees/staff) to secure a payroll account from banks. This is because most banks have a minimum requirement (at least 20 employees or up) for those organizations they will grant payroll accounts to.
Fortunately, a prepaid card can surely come in handy. When it comes to prepaid cards, businesses and organizations are allowed to avail of as many prepaid cards as their company needs. They can then distribute these prepaid cards to their employees and staff for whatever use they deem fit.
A prepaid card also makes it effortless and easy for businesses to carry out fund transfers. This is especially beneficial when paying for employee salaries, bonuses, and other incentives. This spares employers and businesses from all the hassles of handing out checks or cash ever again.