Compare: Business Prepaid Cards Versus Employee Credit Cards

By April 18, 2017Business Prepaid Cards
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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


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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