Prepaid Business Cards: A Flexible Solution for Small Businesses
Prepaid business cards are a versatile tool for small businesses looking to manage cash flow and expenses effectively. These cards are pre-loaded with a specific amount of money, allowing for controlled spending and budgeting. They can be assigned to employees with spending limits, making them ideal for various expenses such as meals, entertainment, or supplier payments.
There are two types of prepaid cards available: physical and virtual. Virtual cards are suited for online purchases and subscriptions, while physical cards are better for in-person transactions. Both options offer added security compared to credit or debit cards and can be easily deactivated if lost or stolen. Additionally, they can be added to digital wallets like Apple Pay or Google Pay for convenience.
For small businesses with poor credit ratings or difficulty obtaining traditional credit cards, prepaid business cards can be a viable alternative. They can be acquired as part of an existing business account or as a standalone option.
Pros and Cons of Prepaid Business Cards
Pros:
- Instant Issuance: New staff members can be set up quickly and efficiently.
- No Credit Check Required: Ideal for businesses with less-than-perfect credit histories.
- Convenient Integration: Easily integrated into existing business bank accounts.
- Simple to Use: Once set up, they are ready for use within preset limits.
- Widely Available: Many options are available through banking providers or standalone providers.
- Quick Expense Processing: Faster processing than credit cards, reducing staff out-of-pocket expenses.
- International Use: Suitable for business travel with multi-currency loading options.
Cons:
- Fee-Heavy: Fees may apply for loading the card or exceeding limits.
- No Credit Building: Does not contribute to building business credit.
- Limited Rewards: Fewer rewards compared to traditional credit or debit cards.
- Not Covered by Section 75: Lack of protection in case of seller breaches or misrepresentation.
Top Prepaid Business Cards on the Market
Here are some of the leading prepaid business cards available, each offering unique features tailored to business needs:
1. Wallester
Number of Cards: Unlimited
Account Fee: None
Features: Budgeting tools, custom card branding, compatibility with Apple Pay and Google Pay
2. Emburse
Number of Cards: Unlimited
Account Fee: Custom
Features: Spending limits, category restrictions, manager authorization for fund requests
3. Equals Money
Number of Cards: Up to 100 Physical Cards
Account Fee: Business (£50/year), Custom (bespoke)
Features: Unlimited users, free virtual cards, no monthly fees
4. Revolut
Number of Cards: 3-200
Account Fee: Basic (£0), Grow (£19), Scale (£79), Enterprise (custom)
Features: Borderless accounts, fee-free transfers, multi-currency support
5. Pleo
Number of Cards: Not Stated
Account Fee: Starter (£0), Essential (£39/month)
Features: Cashback, multi-currency support, custom spend controls
6. Airwallex
Number of Cards: Unlimited
Account Fee: £45 set up fee
Features: Multi-currency support, global spending, currency conversion
7. Soldo
Number of Cards: 20-30 or Unlimited (based on plan)
Account Fee: Starting at £21/month
Features: Apple and Google Pay, expense tracking, advanced card rules
8. Tide
Number of Cards: Up to 50 per account
Account Fee: Free (£0) to Cashback (£49.99)
Features: Individual spending limits, scheduled payments, invoice creation
9. Card One Money
Number of Cards: Not Stated
Account Fee: £12.50 per month
Features: Cashback rewards, online card loading, spending limits
10. ANNA Money
Number of Cards: Varies by package
Account Fee: Business (£14.90/month + VAT)
Features: Cashback incentives, customizable card limits, flexible packages
How to Choose the Right Prepaid Business Card
When selecting a prepaid business card, consider factors such as your industry, company size, and fee structure. Explore free trials or consult with an accountant for personalized recommendations.
