What Are the Benefits of Prepaid Cards for Business and Customers?
Over the last couple of years, a new player in the financial industry has been steadily gaining popularity – the prepaid card.
Before diving into the advantages of the prepaid card, let’s explain what it is and how it works.
Simply put, the prepaid card is an alternative of a credit and a debit card. It’s neither a credit card as you don’t get into a credit contract with a bank, nor a debit one as you do not spend from your checking/saving account. But it works just like a standard card!
Prepaid cards are created with one single goal. They give freedom to customers to choose how much money to deposit onto the card and spend. This way they can manage their finances the most convenient way.
Let’s see what are the benefits of the prepaid card, no matter if it’s for personal or business use.
Eliminate the fear of going into debt
People using credit cards often spend more than they can actually afford. This results in difficulties to pay off their credits, and ultimately, in falling into debt.
This is the main reason why many people prefer prepaid business cards. With the prepaid business card, you can only spend the amount of money you’ve loaded onto the card.
Full control of your finances
Most prepaid business cards enable you to set spending limits according to your budget and thus you never overspend.
In this train of thoughts, prepaid business cards are a perfect solution for small and medium-sized business owners who want to strictly control their employees’ expenses.
Let’s assume that one of your employees went on business trip and you’ve allotted a certain sum to his prepaid business card. If he has spent less than anticipated, you can simply log into your online account and move the money off the card within seconds.
No need of a bank account
The biggest benefit of getting a prepaid card is that you don’t have to go to the bank and even open a bank account. In most cases, you only need to register online to order your card. It is delivered to your address in a few days.
Our advice is to carefully read the Terms and Conditions when you order your card, so that you clearly understand the fee structure and avoid any surprises.
Activity track via an online account
Prepaid cards are usually associated with an online account (this is not bank account!) and you can keep track of all transactions and operations, made with your prepaid card.
Via the online account, you can also:
- deposit money onto your prepaid card
- make transfers
- lock or unlock your card
- to add an extra layer of security when needed
Prepaid cards can be used almost everywhere
Most prepaid are accepted worldwide. Actually you can use them everywhere – to withdraw cash, to pay in stores, to shop online, etc.
There are some great benefits of using a prepaid card – all you need to do is to choose the right one for you!