Prepaid business cards (sometimes called preloaded debit cards ) require you to deposit money onto them before either you or your employees make use of it. Prepaid cards offer business owners who need to closely track employee spending an effective solution without providing access to an all-encompassing employee credit card.
The top prepaid business cards are simple to get, are user-friendly, and provide tools for managing finances that are free of huge fees (or any charges whatsoever). These are our top choices, and more details on how business prepaid cards function and possible alternatives.
What are Prepaid Business Cards?
Prepaid business cards function similarly to debit cards in that the funds you load onto them. They usually have digital tools to monitor your staff’s finances, including mobile receipt capture and spending limits. Many companies offer cards every month with prices ranging from no cost to over $100 per month for features or large numbers of cards.
Prepaid business debit cards work similarly to regular debit cards in terms of transference of funds between accounts for business use; however, the funds for preloaded prepaid cards need to be loaded manually.
If your bank allows it, copies of a debit card issued for use at work can be issued directly to employees. But, the typical business debit cards don’t have the inherent spending control features of prepaid cards, which is why it is best to restrict their use to only a handful of trustworthy team members. Prepaid debit cards allow employers to maintain greater oversight over employee spending.
Also read: 4 Best Secured Business Credit Cards to Help Build Your Company’s Credit
Top 5 Business Prepaid Cards
Prepaid business cards make expense management easy. Learn which prepaid cards offer the best features, flexibility, and value for your company
1. Bento for Business Visa® Debit Card
Bento cards can help limit spending by setting limits or restricting purchases at specific times during the week. Business owners can opt to withdraw cash from ATMs. However, employees don’t.
You can sign up online by providing basic details of yourself and your business, such as registered business name, EIN/SS Numbers, etc. Businesses must be registered with the U.S. and not operate in high-risk areas like marijuana, cryptocurrency on the internet, or adult content.
- Credit check: None
- Fees: From $29/month for up to 10 cards
- Free trial: 60 days with up to 50 prepaid cards
2. Dash Prepaid Mastercard
Dash allows users to easily generate unlimited debit cards prepaid for small-scale businesses without incurring fees or hidden costs. Dash’s features are straightforward for business owners. suspend and add users, create funds, and set automatic fund reloading procedures. Employees can request funds whenever they need them. Furthermore, you can export information for accounting purposes.
Each debit card is issued with a capacity of $10,000, and you are allowed to have no more than $100,000 within the Dash balance at any one moment. The card provider may require you to maintain your balance over the amount you have spent on cards in the past week. Dash cards cannot allow business owners to withdraw cash or check balances at ATMs and POS systems.
To create an account, simply fill in the enquiry form available on the Dash website. A representative will be in touch.
- Credit check: Not required (Dash may still check)
- Fees: None
- Free trial: N/A
3. Emburse Prepaid Card
Embarcade makes it simple and quick to create one-time use virtual cards or one-off use cards for specific uses, making it simple and fast to serve specific purposes immediately. Like traditional prepaid business cards, Embarcade allows users to limit spending by setting spending budgets per card as well as transaction amount limits on certain categories or time frames, limiting use.
The Emburse card can’t be used in ATMs. Although the cards aren’t expensive, you’ll have to subscribe to Emburse Spend, the expense management platform of the company. Emburse doesn’t publish pricing details.
For a start with Emburse, request a demonstration online and talk to the sales representative to establish an account. At a minimum, your business should provide its name, bank account details for its operation, company address information, and an Employer Identification number or Social Security number of its account holder, and any additional pertinent data required for registration in the U.S.
- Credit check: No
- Fees: Custom (based on company size and features)
- Free trial: N/A
4. PEX Prepaid Visa
PEX Prepaid Business Debit Card stands out as it doesn’t impose limits on how much of an account’s balance may be spent for business use – something not provided by many prepaid business cards. Therefore, businesses with high spending don’t have to worry about a limit on their accounts. Some cards have limits on spending, however.
Similar to other prepaid cards for business, owners can keep track of spending through an app on their mobile device and set spending limits. This includes spending restrictions to specific merchants or dates, or times of the day. The ability to capture receipts on mobile devices is there. Cash withdrawals aren’t.
You can apply for a PEX Prepaid business debit card on the internet. Ensure to give your personal and business information, such as details of the Social Security number of the principal account owner. The account should be functioning within three days.
- Credit check: No
- Fees: Base Plan: Up to 5 cards; additional cards cost $8 each month. Next plan: $75/month for up to 20 cards; $4/month per extra card (waived if monthly spend > $50,000)
- Free trial: 60 days
5. U.S. Bank business prepaid cards
U.S. Bank offers a similar prepaid card for expense management choice to the other companies on our list. It is now possible to give cards to employees, transfer funds between accounts, limit spending, and manage expenses online. Once employees have finished, they have spent their money, and you can transfer the funds to your primary account. Administrators can also choose to allow cardholders access to cash.
However, U.S. Bank stands out by offering another choice for prepaid debit cards to help manage payroll. Businesses using Bank of America services to pay out employee payments, be they regular stipends, paychecks, or bonuses, on debit cards and prepaid debit cards, so employees may use these for personal expenses. With traditional business credit cards, you may have limited control over employee spending, unlike prepaid cards that let you set clear limits. consider them substitutes for checkbooks instead of paper.
Payroll cards can be a viable alternative for companies that frequently pay workers or contractors and would like to decrease their dependence on checks. They are also a great alternative to per diems when you do not need to keep track of expenses.
- Credit check: No
- Fees: Custom (based on company size and features)
- Free trial: N/A
Also read: Alternatives to No Credit Check Loans: Exploring Your Options
Are Prepaid Cards the Same as Business Credit Cards
Although both prepaid business cards and business credit cards appear similar, their functions differ drastically. A prepaid business card comes already loaded with funds and can only be used up until the funds have been exhausted. A business credit card provides credit lines to the company, which allows it to take out loans up to a specific limit.
Business credit cards offer rewards and benefits, such as cash back or travel rewards, which are beneficial to companies. They also permit companies to develop credit, which is beneficial for getting loans or other credit lines in the near future.
However, they are accompanied by very high interest rates, and if they are not handled with care, they can lead to substantial debt. However, the prepaid business cards do not permit companies to invest more money than what is loaded on the card, thus lessening the risk of accruing debt.
Alternatives to Prepaid Business Cards
There are many alternatives to prepaid business cards. They include:
- Business Debit Cards. They connect directly to a business’s bank account, with transactions debited directly from the account balance, similar to how prepaid cards work.
- Business Credit Cards. As we mentioned earlier, the cards provide a credit line to the business, which allows it to take out loans up to the limit.
- Charge Cards: The cards are similar to credit cards. However, they have the requirement that their balance be paid in full by the close of each cycle. This helps to keep interest from accruing and the possibility of accruing debt.
- Expense Management Software: The software could help in monitoring and managing business expenses. Some even provide employees with their own cards that are integrated for use.
Conclusion
Prepaid business cards are a smart choice for companies looking to control spending, simplify expense management, and reduce financial risks. They’re easy to use, flexible, and provide clear visibility into employee expenses, making them ideal for small to medium-sized businesses. While they don’t help build business credit, their budgeting and management benefits make them a practical alternative to traditional business credit cards.
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