Business debit cards are increasingly being used and are changing the way most businesses transact. These cards are a fast and secure replacement for traditional methods of expense control because they are connected in real time to a business’s bank account.
So, in this article, we’ll look at what you need to know about business debit cards and how they can help you manage your money.
What Are Business Debit Cards?
Debit cards for business use are financial instruments created specifically for small businesses. They are associated with an employer’s checking account, so both the employer and the employees can use the money from the account to withdraw for transactions or other bill payments. Traditional personal debit cards may differ from business debit cards since they include added features aimed at helping small businesses, such as accounting software, staff card control, and limits.
Business credit cards let you borrow money up to a certain limit, while business debit cards let you spend only what’s in your checking account. It is useful for organizations to attain higher financial stability by not venturing deeper into credit and interest. Credit cards can be helpful for large or recurrent payments that can be paid in full each month, even though they may also come with extended warranties and rewards programs for purchases bought with them.
Advantages of Business Debit Cards
Let’s look at the business debit card benefits, some of which are listed below:
1. Budgeting and Spending Control
The utility of business debit cards includes expenditure control, which is essential for small business owners. Compared to credit cards, debit cards are actively connected with the company’s checking account so that purchases will be made only with the necessary sum of money.
As such, this feature helps firms become more careful with their money and prevents them from going over budget. Also, most business debit card providers let you set limits on how much employees can spend, where they can use their cards, and in what categories.
2. Improved Security and Fraud Prevention
Most business debit cards are normally protected with features like chips, PIN codes, real-time monitoring of risky activity, etc., to prevent fraud and other unlawful activities.
3. Expense Monitoring and Accounting Integration
One benefit is that using a company debit card is easier when it comes to accounting integration and spending. Some suppliers even have integrative software solutions that facilitate the segregation of the transaction into popular accounting software without input from the user. This cuts down on the risks of mistakes and increases the efficiency of the process, as the data eliminates the need for manual input.
Besides, specific enterprise debit card solutions may allow employees to capture and upload receipts to the system, thus reducing expense management time considerably.
3. Possible Rewards and Cashback Opportunities
Some business debit card providers give cashback or rewards on certain purchases, like office supplies or travel. This helps companies save money and make more profit.
4. Convenience and Accessibility
Speaking of mobile payments, business debit cards are readily available and quite comfortable to use. These funds provide safe havens for billing, Internet purchases, and ATM usage.
Factors to Consider When Selecting a Business Debit Card
While you plan to choose a business debit card, there are some factors to keep in mind:
1. Network
To some extent, with the involved networks or payment processors, the debit card may be limited in its level of acceptance at different merchants and ATMs. Because Visa and Mastercard are more widely used, they are more flexible and suitable for business uses. The selected network must also consider the distribution of your activity and any travel commitments that might be involved.
2. Fees
Business debit card charges such as ATM withdrawal fees, monthly maintenance charges, and transaction fees are possible. Ensure you look at the fee schedules provided by the various credit card issuers to determine the probable costs incurred in the intended usage of the specific credit card. Low monthly or no fee plus reasonable transaction rates should be the aim and goal when seeking these products.
3. Spending Limits
Setting and adhering to spending limitations is essential to managing and controlling business expenses. Look for debit card providers with customizable spending restrictions. This way, you can put daily, weekly, or even monthly spending caps on each employee’s card.
4. Compatibility with Mobile Wallets
Business debit cards work great with mobile wallet apps such as Google Pay, Apple Pay, and Samsung Pay these days. While this starts to roll in, users or employees will find it easier to do online shopping or any other bill payments using their phones.
5. Accounting Software Integration
Keeping track of your business expenses is key to being successful. Get a debit card that connects to your financial management software or has built-in expense tools. This helps you sort transactions automatically, skip manual work, and get updates in real time.
6. Management of Employee Cards
Excellent employee card functions should be sought if you have your eyes set on extending the firm’s debit cards to several of your workers. Some of these include individual daily spending limits, restricted categories of merchants, and daily spending tracking of employees.
7. Rewards Programs
Some business debit cards give cashback or rewards for qualifying purchases, but this isn’t as common as credit cards. Check your spending to see if these rewards are worth it, and choose a card that’s safe and simple to use.
8. Security Features for Business Debit Cards
This means that business debit cards must be guarded adequately to ensure that your organization is not a victim of fraudsters performing unauthorized transactions. The following are some crucial security precautions and guidelines to take into account:
- Establish reasonable restrictions for the staff’s cards.
- Pay much attention to the transactions and other account statements.
- Turn on alerts for any suspicious transactions.
- Use strong passwords for online accounts.
Who Should Consider Using a Business Debit Card?
Most businesses can use a debit card, but some might find them especially useful based on their spending habits and needs. Let’s check who can get one.
- Startups and small businesses: Small business owners, as well as entrepreneurs, very often work with a limited budget, and thus, they have to control their cash flow in a calculated manner. Business debit cards can be a good choice for these small companies. They enable them to regulate the money outflow, thus preventing debt accumulation.
- Companies with Regular Small Transactions: Buying small items like office supplies or services can save money with business debit cards. This means you don’t need petty cash or reimbursements because employees can quickly use their cards to buy what they need with less paperwork.
- Businesses Employing Remote or Mobile Workers: Companies can provide debit cards to staff members who travel frequently, giving them the necessary freedom for their jobs. This speeds up the process and makes things easier, as workers can now simply get what they need and handle work-related expenses with the card instead of carrying cash or waiting for reimbursements.
Get Your Business Visa Debit Card from Cheqly!
Small businesses benefit greatly from business debit cards. These cards help you track costs, manage spending, and stick to a budget. They also make handling financial transactions easier.
When you open a Cheqly account, you’ll get a physical Visa card and a virtual debit card. Use the physical card for in-store shopping and the virtual one for online purchases. You’ll find it easy to manage daily transactions. Open a Cheqly account and get your business Visa debit card today.