Some of you may be asking yourselves what is the point of having a prepaid business card. Well to start off, they are reloadable prepaid cards that contain a fixed amount funds. These funds can then be used to cover business expenses, such as travel, meals and supplies. Prepaid business cards are useful because they make sure you stay on budget. These along with business credit cards are great tools for any business. Continue reading to learn more.
|Chase Business Complete BankingSM||$300 Cash||Review|
|U.S. Bank Silver Business Checking Package||$400 Cash||Review|
|U.S. Bank Gold Business Checking Package||$400 Cash||Review|
|U.S. Bank Platinum Business Checking Package||$400 Cash||Review|
|Huntington Bank Unlimited Plus Business Checking||$1,000 Cash||Review|
|Huntington Bank Unlimited Business Checking||$400 Cash||Review|
|Huntington Bank Business Checking 100||$200 Cash||Review|
|Axos Bank Basic Business Checking||$200 Cash||Review|
|Axos Bank Business Interest Checking||$200 Cash||Review|
|Axos Bank Business Savings||$200 Cash||Review|
|Regions Bank Business Checking||$150 Cash||Review|
|NorthOne Business Checking||$20 Credit||Review|
|Novo Business Checking||$40 Cash||Review|
|BlueVine Business Checking||2.00% APY||Review|
Table of Contents
How Do Prepaid Credit Cards Work?
Unlike a regular debit card, a prepaid business credit card is not linked to a bank account, rather they are loaded with a fixed amount of funds and must be reloaded when the funds are used up. However, there are many pros and cons of prepaid business credit cards to consider before deciding to get one.
Advantages of Prepaid Cards for Business
Prepaid business cards can be beneficial for business owners and the workers. Here are some advantages you should consider:
- Easy to get: You don’t need to tie your prepaid business card to a particular bank account and there is no credit check required. Also, these cards are not reported to the credit bureaus so they do not harm your credit.
- Convenient to use: These credit cards can be used just like a regular debit card. They are accepted wherever debit cards are accepted and can be used to make online purchases as well.
- Control and track employee spending: If you’re worried about your employees overspending on the cards, you can always set a limit for work-related expenses by loading a card with a limited amount of money. Additionally, you can always track their spending and ask for a reimbursement if you feel that the card isn’t being used properly.
- Keep personal and business spending separate: If you are a small business owner, this card can help you separate your spending so you are more financially organized.
- Manage spending remotely: Some card companies allow you to monitor business card transactions from your computer or from an associated mobile app.
Disadvantages of Prepaid Cards for Business
Before getting a prepaid business credit card for yourself or for your employees, it is important to understand how they work and what they can do for you. One of the biggest disadvantages of these types of cards are the fees that come with it. Be sure you read the full terms and conditions for signing up. Some fees that may come with the card include:
- Monthly fee for the master account
- Monthly fees for each additional card
- Foreign transaction fees
- Cash withdrawal fees
- Transfer fees
- Balance inquiry fees
- Stop payment fees
Who Should Use Prepaid Business Credit Cards?
Prepaid business credit cards are generally geared towards smaller businesses, but are still useful for a business that wants to track and control the spending done by their employees. Prepaid cards might be your card of choice if you prefer not to use business credit cards but still need a card for regular expenses.
Prepaid Business Card Brands
Prepaid business cards are often backed by Visa or MasterCard, but fees can vary based on the card issuer. Here are two prepaid small business credit cards to consider:
|Prepaid Business Card||Setup Fee||Monthly Fee||Monthly Fee for Additional Cards|
|NetSpend Small Business MasterCard||$0||$9.95; waived if monthly purchases exceed $10,000||$1.95|
|PEX Visa Prepaid Card||$49.95||$75 for up to 20 cards, $200 for up to 100 cards; waived if monthly purchases exceed $50,000||$4 for up to 20 cards, $2 for up to 100 cards|
For those of you who own a small business or simply want to track the spending of your employees, then prepaid business credit cards are the perfect product for your. They don’t have to be connected to a specific bank account and don’t harm your credit! However, keep in mind that they do come with fees. For more posts like this, check out our list of business bank bonuses and business credit cards!