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April 2017

business prepaid cards versus checks

Compare: Business Prepaid Cards Versus Checks

By | Business Prepaid Cards | No Comments
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Can Business Prepaid Cards Surpass The Conveniences Of Giving Employees Checks?

We’ve already compared business prepaid cards to employee credit cards and cash. In both cases, business prepaid cards were victorious in control, convenience, and liability. This week, we are going to compare the conveniences of using checks to control and manage employee purchases.  Does this stalwart payment method have a chance?  Let’s start comparing and see…

The Pro’s Of Using Checks – Write it, Cash It, Spend It, Repeat

We’ve all been writing checks since we learned how to balance a checkbook as a kid.  Now, you use this in your business because you can offload writing checks to your office manager.  It’s simple, free and you get tracking in your bank account for each check. Here’s why many businesses still use checks in their business to fund employee purchases:

  • Can be used to control the exact amount given to employees
  • Cashed checks result in cash which can be used everywhere
  • Can write checks to only specific merchants and service providers
  • Admins can write checks, freeing business owners of this duty
  • Expenses are tracked via check # in bank statement for accounting

The Cons Of Using Checks – Poor Reporting, No Controls & Employee Theft

While checks appear to be an immediate way to empower your employees to buy the supplies they need to do their jobs, checks still need to be cashed which is an extra step.  Also, you can’t control how the funds are spent or what happens when supplies are returned.  We’ve heard about employees over-buying supplies with cash from checks, then returning the supplies and keeping the cash. Yikes!  No one thinks their employees are stealing, but forgetting to turn in all returned funds is just too easy and employee theft can exist right beneath your nose.  Here are a few reasons why checks may not be as great as you think:

  • Checks used for cash can’t control where the funds are spent
  • No reporting on where funds were used if checks are cached
  • Overdrawn fees
  • Reconciling check purchases can be cumbersome for accountant – no mobile app, receipt capture, tagging transactions, accounting software integrations, etc.
  • Like cash, it can be time-consuming to manage – shoeboxes of receipts
  • Lacks innovative features – legacy solution without updated features 
  • Returns are delivered in cash, which employees can keep (i.e. employee theft)

How Business Prepaid Cards (BPC) Improve Upon Checks

Business prepaid cards can deliver the same convenience of checks, but free admins and business owners from having to physically be present. Only BPC’s offer:

  • The ability to give each employee a card with spending limits by employee, day, week or month
  • Control where the cards are used through spending categories
  • Visibility – purchases are accounted for in real-time
  • Reporting – all purchases are recorded in real-time and can be exported to (.csv) QuickBooks
  • Returned funds are delivered back to the main account or card; not cash to employees
  • Capture receipts via mobile app at the POS eliminates accounting gaps
  • Offered by upstart FinTech companies that deliver innovative features monthly, such as Tags, Notes, sub-accounts, administrators, accounting software integrations, custom merchant category code (MCC) controls via API

Conclusion:

Checks have served you well for years.  But it’s time to get with the times.  If you think that tethering yourself or your employees to a piece of paper (i.e. check) and requiring them to go to the bank to get the funds they need to do their job, then you are doing them, yourself and the success of your business a disservice.  Take a few minutes to educate yourself about the power, control, convenience and benefits of using prepaid cards for business and you’ll never go back to using checks again. Start comparing business prepaid card features and see why business prepaid cards are quickly becoming the preferred payment method for SMBs, nonprofits, and organizations.

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business prepaid cards versus employee credit cards

Compare: Business Prepaid Cards Versus Employee Credit Cards

By | Business Prepaid Cards | No Comments
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Can Business Prepaid Cards Exceed The Conveniences Of Employee Credit Cards?

Last week we saw business prepaid cards come out the victor in a bout against cash. This week, we compare business prepaid cards to the latest expense payment method, giving your employees their own credit card. As the newest payment method, you’ll see how business prepaid cards emulate all of the benefits of employee credit cards, but without the liability. Let’s get ready to rrrrrrumble!

The Pro’s Of Using Employee Credit Cards – Why Plastic IS The Future

Business owners know that their time is better spent growing the business, not making trivial purchases that employees can make. The easiest way for owners to offload these tasks and empower employees is to give them each their own corporate card. Here’s why credit cards (AKA “plastic” payment cards) have become a top employee expense solution for those who can qualify:

  • Can be used everywhere credit cards are accepted
  • Spending card limits limit maximum risk to owner
  • Autonomous employees don’t need to disrupt owners to make purchases
  • Expenses are tracked and data can be exported for accounting
  • Returns will deliver funds back to the card (not cash back to the employee)

The Cons Of Using Employee Credit Cards – What You Don’t Know Can Hurt You

Simply put, most small business owners can’t qualify for a corporate card program that allows them to give cards to their employees. And if you can qualify, most entry level business credit cards are actually rebranded personal cards, which means that the signatory (AKA, the business owner) is personally liable for all debt accrued across all the employee cards. Here’s why business credit cards for employees may not be the best choice:

  • Risk exposure – business owner is liable for all purchases
  • Bank imposed fees (interest, late fees, etc.) can add up
  • Can’t control where the cards are used – no spending category controls
  • Generally only a spending card point solution, not an expense management program – no mobile app, receipt capture, tagging transactions, accounting software integrations, etc.
  • Time-consuming to manage – have to call to cancel/order cards
  • Lacks innovative features – legacy solution offered by “old school” banks 

How Business Prepaid Cards (BPC) Improve Upon Employee Credit Cards

Because business prepaid cards are an evolutionary improvement over credit cards, you’ll see below that they both offer similar base features. However, because business prepaid cards are offered by more nimble, innovative upstarts, they include features that big banks can’t:

  • Both are universally accepted (anywhere credit cards are accepted)
  • Both cards are readily available and convenient, so no interruptions

Only BPC’s offer:

  • The ability to set spending limits by employee, day, week or month
  • Control the types of purchases (merchants) through spending categories
  • Visibility & reporting – all purchases are accounted for in real-time
  • Eliminates most known and unknown waste via visibility & controls
  • Receipt capture via mobile app at the POS eliminates accounting gaps
  • Offered by upstart FinTech companies that deliver innovative features monthly, such as Tags, Notes, sub-accounts, administrators, accounting software integrations, custom merchant category code (MCC) controls via API

Conclusion:

If you’ve been enjoying the conveniences, features, and control that employee credit cards offer, then you are already familiar with payment cards. Exploring business prepaid card features can deliver even MORE control, accounting conveniences, and innovative features while eliminating your liability and exposure to risk. Ask any business owner who has dealt with fraud or theft and you’ll quickly understand why this exposure to risk should be avoided at all costs. Granted, many owners don’t consider this until it happens to them. But why wait for this inevitability when you can avoid it altogether?

Discover the innovative features that business prepaid cards layer on top of a payment card, and maybe you’ll realize what you’ve been missing is exactly what you need.

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business prepaid cards versus cash

Compare: Business Prepaid Cards Versus Cash

By | Business Prepaid Cards | No Comments
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Can Business Prepaid Cards Eliminate The Inefficiencies Of Cash?

In our first bout of expense payment method head-to-head comparisons, we are going to compare business prepaid cards to the stalwart expense payment method, cash. As the oldest payment method cash will always have a place in your business, but reducing the use of cash will greatly reduce exposure to abuse, loss, and interruptions that impact productivity. Let’s get started.

The Pro’s Of Using Cash – Why Cash Is King

Cash delivers many conveniences that business owners and employees love:

  • It can be used everywhere
  • You can dole out exact amounts, so you know your exposure
  • Thanks to the “petty cash” drawer, it is readily available
  • It is highly liquid, so your precious cash flow funds aren’t tied up
  • Returns will deliver cash back

The Cons Of Using Cash – What You Don’t Know Could Be Costing You

The convenience of cash also comes with many drawbacks that business owner’s either accept or aren’t aware of the extent it is costing them:

  • Prone to abuse or waste – Employees can make unauthorized purchases
  • Borderline waste or abuse is accepted by owners but the extent is unknown
  • Can’t control where or how the funds are used
  • No good tracking, including forgotten or lost receipts
  • Poor visibility – Reconciliation could be monthly, can’t see issues
  • Decreases productivity – interrupts employee & manager to get funds

How Business Prepaid Cards (BPC) Solve Cash’s Deficiencies

  • Universally accepted (anywhere credit cards are accepted)
  • Employee cards are readily available and convenient, so no interruptions
  • Specify dollar amount– set spending limits by employee, day, week or month
  • Control the types of purchases (merchants) through spending categories
  • Visibility & reporting – all purchases are accounted for in real-time
  • Eliminates most known and unknown waste via visibility & controls
  • Returned funds are returned to the card or account
  • Receipt capture via mobile app at the POS eliminates accounting gaps

Conclusion: Reduce Use Of Cash To Eliminate Losses

Every business has different needs in how it manages employee expenses. Cash provides a lot of instant convenience benefits, at the expense of decreased visibility, lag in accounting & reconciliation, and is prone to abuse. Business prepaid cards replicate many of the pros of cash while mitigating the cons. There may still be situations where cash cannot be replaced, but implementing a business prepaid card program into your business could provide greater control, eliminate inefficiencies and prevent waste and abuse that you may not be tracking.

Compare business prepaid card features and get started on a business prepaid card free trial today!

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Top Features of Business Prepaid Cards

By | Business Prepaid Cards | No Comments
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Why Do I Need Business Prepaid Cards?

Now that you are aware of what business prepaid cards are, you might still be learning about them and wondering why you should consider them. That’s exactly what we are going to cover in this article.

Control, Control, Control

You may have heard the adage, what are the three most important words when it comes to real estate: location, location, location.  The same can be said about control when it comes to business prepaid cards.

The Small Business Owner’s Predicament

The challenge that business owners have with regards to employee spending is an eternal compromise between control, loss and time.  While some business owners purchase everything themselves ensuring optimal control and zero loss, they do so at the expense of their time, which is generally more valuable than the time they are exhausting making trivial purchases that any employee could make.

Empowering employees or even family member’s to make these purchases frees up the business owner’s time, but even the most trustworthy employee or family member can keep the change, lose the receipt for petty cash purchases, or buy something for themselves.  All of this financial loss can add up if not properly tracked, but most business owners have just accepted this as a cost of doing business.

Building A DIY Expense Management Solution

Forced to cobble together their own a la cart expense management solution, many business owners use a hodgepodge of legacy payment methods; cash for ultimate control of exposure, checks to control suppliers or for cashing convenience, credit cards for reporting & convenience, and store gift cards for control & convenience.

While each has its merits, each is also tethered to detrimental artifacts which you already know in the form to dollar, time and convenience losses.

Business Prepaid Card Features To The Rescue

We’ll now discuss how the features of business prepaid cards represent the best of legacy payment methods while mitigating their detriments.

Ultimate Control – Owners and authorized Admin’s control how much money each employ can access, and can set specific spending categories which limit where the cards will work. If an employee doesn’t show up, just turn a card off, eliminating the exposure inherent with employee credit cards.

Convenience – Configure cards, release funds and see reporting from the convenience of your smartphone, tablet or desktop. Employees get a payment card they can use to get their job done without interrupting their and their manager’s productivity. Everyone works smarter.

Reporting – See all spending in real-time as it happens and catch small issues before they turn into large problems. Alerts keep you informed of spending activity on-the-fly giving you eagle’s eye insight into your company’s precious cash flow.

Conclusion – Learn More If You Are Not Convinced

If you are starting to see how business prepaid cards can efficiently and effectively replace legacy payment methods, then you are starting to understand why business owners are migrating over to prepaid business cards in droves.  If you need even more proof, then download our FREE guide, titled “Business Prepaid Cards: Everything You Need To Know” now!

 

 

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