Prepaid debit cards are experiencing a surge in popularity, as customers use them to ensure they’re staying on-budget. They’re also more widely accepted than ever, with most online merchants now accepting prepaid cards in their payment methods, and digital banks offering only prepaid cards popping up all over the place.
You may not have considered it yet, but prepaid cards can also be a great benefit to your business. As well as being (usually) okay for use right across the world, some can even store funds in multiple currencies, or offer built-in PCI DSS compliance. Read on for more reasons why your business should open a prepaid debit card account.
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Prepaid debit cards usually have significantly lower fees than equivalent credit card programs, with most having no activation fee, monthly service fee, or annual account fee. Some of them are entirely free! They also allow you to avoid credit card fees by the simple fact that using debit, and not credit, doesn’t involve building up debt against your business. You’re just spending money you already have, and settling your balance right away. You also won’t be paying interest to your card issuer.
They’re great for keeping track of spending.
If you or a colleague is off on a business trip, it would be easy to get tempted and overspend company funds. From fancy dinners to cocktails with clients, many employees, even company directors, can get carried away when given a company credit card. Pre-load a debit card with the amount you’ve budgeted for the trip. If an emergency expense arises, your employer, or you, if you’re the account holder, can load the card with additional funds from wherever you are, in just a few seconds.
Rewards for referrals.
Some prepaid debit cards have affiliate programs, where you receive a reward of some sort – financial, or something else for referring other prospective customers to your card company. If you gather a lot of new customers for your card issuer, it can be very lucrative. For example, if you’re in the B2B financial advice business, you can reap the benefits of affiliate recommendation, while providing an excellent service to your customers by introducing them to a prepaid debit card.
There’s no need for petty cash.
As the cash economy continues to shrink, and more and more people try to live a ‘cashless’ life, the amount of petty cash that’s kept in office is also decreasing. As a prepaid debit card is basically the digital equivalent of cash, they’re a great way to store the petty cash your business needs for everyday expenses, without the need for a cash drawer.
They’re secure for in-person purchases.
Sometimes, when making a purchase on a credit card, you find that you’re not asked for ID or a PIN. This is fine if you’re the cardholder and making a legitimate transaction, but what if someone unsavory gets hold of your card? Prepaid debit cards always require a PIN, so even if your card is stolen, no one can use it unless they have the PIN. Keep the PIN safe, and your funds will be safe, too.