We’ve seen plenty of consumer prepaid cards on the market, but how can prepaid cards be used for businesses? Here are three ways companies are leveraging prepaid cards to create value for its employees and improve business payment processes.
Business Expense Management
Prepaid cards help business owners, managers and staff stay on top of business expenses. The main benefit is that employees are freed up from the cumbersome process of keeping receipts, creating expense reports, and submitting the report for approval and reconciliation.
Business owners, managers and accountants also have a clear view of the company’s spending by tracking all transactions in real-time. Compared to credit cards, prepaid cards are generally easier and quicker to apply, set up and distribute to employees You can also set individual spending limits on the cards to avoid going over the budget with your company overheads.
Payments for Gig Workers and Contractors
As companies increasingly embrace the use of gig workers (short-term, on-demand and often remote), prepaid cards are emerging as an instant, reliable and easy-to-use payment solution. If you are a company that uses contractors, freelancers, agents or affiliates, prepaid cards may be a great alternative to other forms of payment, such as checks, credit cards or EFT.
Companies can offer these workers instant payment without setting them up on the traditional payroll reserved for employees. Workers can enjoy fast, secure payments without being charged hefty fees or having to cash in cheques.
Another advantage of prepaid cards is the time and money saved from managing work-related expenses. Companies can better manage and reconcile expenses, process multiple payments instantaneously and track their transactions in real-time. Workers are protected from having to pay out-of-pocket for work-related expenses and the burden of filing for reimbursements.
Prepaid cards are a great way for employees to receive their salary packaging benefits, allowing them to pay for everyday expenses such as groceries, petrol, clothing and bills with their pre-tax salary.
Employees do not need to worry that they will exceed their spending as it is a prepaid card and the amount is set by the employer. For employers, again the benefit is greater efficiency from not having to process claims and being able to reconcile salary packaging expenses easily.
Interested in a prepaid card solution?
Our Visa Prepaid Cards are perfect for business expense management, gig worker payments and salary packaging.