A prepaid card is a smart way to keep track of your own expenses, and that of your employees’. Often offering better exchange rates, a prepaid card is an excellent alternative to a low FX business card or carrying cash, and an innovative solution to ever-increasing business travel costs.
Before any business trip, a prepaid company card can be preloaded with your travel expense budget, including any necessary client entertainment costs. The card then works in the same fashion as a debit card and can be used to make purchases and withdraw cash. Cards can even be topped up externally in the event of an emergency.
There are three types of prepaid business cards available depending on the locations to which employees are travelling and the currencies in use:
When contemplating using prepaid cards for business travel, consider the following options in choosing the best card for specific business requirements:
Credit cards can often offer a foreign exchange rate that’s very close to the bank rate and may even provide insurance on purchases. However, in the context of business travel, credit cards have two significant drawbacks:
With an easily managed prepaid card, businesses can bypass many of the inefficiencies and hassle of traditional business travel. Streamlining processes, including administration, reduces overall travel costs while the security and convenience of card payment reduces the need for cash and traveller’s cheques.
This innovative travel solution offers a range of benefits:
If an employee needs to spend money whilst abroad, a prepaid card puts managers firmly in control. There is no need for credit checks to acquire a prepaid card or a virtual company card. Prepaid cards provide all the flexibility of a business credit card with none of the hassle. It is therefore little wonder that prepaid cards are an increasingly popular choice.