Prepaid credit cards: a sure-fire way to control business spending

Learn the differences between prepaid credit cards and credit cards, and see how your business can benefit from more visibility and control over spending.


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What is a prepaid credit card?

A prepaid card is often referred to as a ‘prepaid credit card’ but, in reality, there isn’t any credit involved.

Prepaid credit cards are reloadable. You can add money to them, and once the balance reaches £0, they can’t be used again until you reload them. These cards are also known as prepaid business cards, prepaid debit cards, cash cards, and prepaid cards – but they all mean the same thing.

With preloaded credit cards, you get individual accounts that allow people or departments in your business to manage spending without a hitch. They’re ideal to cover day-to-day costs, as well as one-off purchases. And, for many, they’ve become a welcome alternative to company credit and debit cards.

Buckle up for this journey through the benefits of prepaid credit cards and see how they can help you track and control your business spending like never before.

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Is a prepaid credit card the same as a credit card?

Prepaid credit cards are very different from credit cards, although it may be difficult to tell them apart. (On top of the misleading semantic similarity of the terms…)

Both types of cards will typically have a card network logo such as Visa or MasterCard® on them – but a prepaid MasterCard® is not a credit card.

When you use a regular credit card, you’re borrowing money by opening a line of credit. They are ideal if you’re trying to establish a credit history. But if you’re reading this, it’s safe to assume you have other priorities in mind.

Although credit cards can be used for simple transactions around the world, they’re not the best solution to manage business spending. The only budget you get in a credit card is your credit limit, which can lead staff to drive up debt. And once that limit is reached, you have to wait until the following month to use it again, drawing your business needs to a halt.

With a prepaid account, you can’t get into debt – and your people won’t feel so uncomfortable each time they make a bigger business purchase. You also don’t need a credit check to open an account with a prepaid card company. Sign-up is a walk in the park in comparison.

Traditional processes can’t keep up

73% doubt data

Almost three quarters of respondents to an MHR survey said they doubt their month-end data.

70% lose time

The majority of businesses lose between one day to two weeks per month to spend-tracking admin.

30 days to process

On average, it takes 30 days for a business to process an expense – until then, there’s no visibility of costs.

A preloaded credit card is a simpler and safer option

When discussing finance tools, strong security is as expected as a cheese plate at a party. With a prepaid card, you only spend the money you’ve loaded onto the card. This reduces risk of fraud and deters scammers since you can only lose the amount loaded on each card.

While credit cards are a huge help when you’re in need of credit with a flexible repayment term, prepaid credit cards are more suited for businesses wanting to stick to budgets and stay out of debt. Businesses like yours.

You also won’t pay any interest, either (although there may be fees).

And to make things easier, prepaid cards are usually accepted anywhere that accepts major credit cards – and they can be used to securely withdraw money from cash machines.

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Prepaid credit cards eliminate overspending

The best prepaid credit cards don’t involve a lengthy sign-up process for every account and card.

You can have a virtual prepaid card up and running in less than one working day – and physical cards in fewer than five.

Unlike credit cards, prepaid cards aren’t tied to bank accounts, which means there’s no risk of falling into your overdraft. Since your employees won’t be able to spend more than what is on their cards, you won’t have to worry about surprise charges that could land you in trouble.

Prepaid cards don’t just end overspending – they help your people manage their own spending while keeping you in control. The added accountability will save you money, too.

When an employee or a team needs to make a purchase, you can instantly top up their cards. They can use a prepaid credit card for travel and entertainment, online purchases, fuel, and any other business costs.

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The best prepaid credit cards give you total control of spending

If you’re looking for the best prepaid credit card in the UK, you’ll want to seek out a few key features.

With Soldo, for instance, you can see who’s spending what, instantly. You get information on each transaction as it happens, and you don’t have to wait for monthly statements to see your spending.

The granular level of control that Soldo prepaid cards offer allows you to:

  • Set daily, weekly, or monthly budgets and limits, as well as one-off transactions.
  • See if company money is being spent using a prepaid credit card online or in person, and limit where it’s spent – by category, merchant, and geographically.
  • Get real-time alerts after each transaction to upload receipts and anything else your expense policy requests.
  • Manage cash flow with full control and visibility over money going out.

You can also lock and unlock cards as needed, which makes them a more secure form of payment than traditional credit cards. Yet another advantage to mull over.

See spending in a new light

Prepaid cards are a powerful tool, particularly for businesses struggling to control spending.

Soldo lets you set rules, budgets, and limits that define exactly how you want your people to use the cards. You can order as many cards as you’d like once you sign up.

Think of the time you’ll save (and the headaches you’ll avoid) when you no longer have to get the bank on the phone to increase limits. Your company money will be secure, and you can keep a close eye on it when it moves.

Total control, zero debt. Go for it.

Frequently Asked Questions

How do you top up a prepaid credit card?

The precise process to add money to a prepaid credit card depends on your provider. With Soldo, you make a bank transfer to add funds to your Company Wallet. Then, you can send that money to any individual account via our web payment console. You can make top-ups at any time, and the payment will process instantly. Learn more about prepaid cards here.

Can you top up a prepaid card with a credit card?

The short answer is no. You’re given the details necessary to transfer money by IBAN (for GBP, EUR, or USD), or by Faster Payment (for GBP only), so you can make a deposit to your company wallet in your Soldo account.

Once the transfer has gone through, you’ll be able to transfer money from the company wallet down to the cards themselves.

How to buy a prepaid credit card

You can buy prepaid cards for your business from a provider such as Soldo. All you need to do to get started is pick a plan, fill out a few details and decide how many cards you need. Then once we’ve approved your application, we’ll send you cards to top up with funds.

Is a prepaid Mastercard a credit card?

No. Prepaid cards are different from credit cards. Technically, the term ‘prepaid credit card’ is incorrect, since prepaid cards don’t require credit checks or offer any kind of credit facility. In order to use a prepaid card, you need to load money onto it in advance, and you can spend only the amount you have on it.

When you use a prepaid card, you’re spending your own money, not a bank’s. You can use prepaid cards to make payments, online or in-shop, on things such as travel, fuel, groceries, and office supplies. You can also withdraw money from cash machines as you would with a debit or credit card.

And because prepaid cards aren’t linked to your bank account, you’re less vulnerable to hacking, and it’s far safer than carrying around cash. If stolen, you can simply freeze your cards, and your assets are protected.

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