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Employee Preloaded Cards Vs Corporate Credit Cards

Businesses- big or small, still heavily rely on corporate credit cards for their finances. It's a practice that's been adopted for years and while it does give a certain amount of freedom to conduct business transactions, there are still many roadblocks that lead to its inefficient usage. But even if it's been done for ages, doesn't necessarily mean that you can't evolve and adopt another payment method that works better. In this blog, we will learn more about corporate preloaded cards and why they are far more optimal than the regularly used corporate credit cards.

Preloaded cards already come loaded with a specific amount so the employee cannot spend a rupee above the pre-loaded amount. These cards look just like a regular credit card and can be used the same way- online and offline. The only difference is that there are no credit cycles or revolving credit associated with it. You pay with what you have. Preloaded cards are not linked to the company's bank account which makes them less prone to expense fraud. You can easily hand them out to trusted employees to give them independence over financial decisions. Preloaded cards work in a simple yet effective manner. It comes with a preset monthly budget and spends limit. If an employee wants to make a purchase from his preloaded card, he will first need approval from his manager. Once his expense is authorised, access is granted to him. If the purchase is within the monthly budget and single purchase limit, the purchase is validated and successfully done. If not, the purchase stands cancelled and the employee needs to ask for access to funds again that sticks to the budget. Employees in the higher management can gain access to a higher amount of funds and so on, hierarchical classification of approvals and spending limits can be set in place easily. Preloaded cards also come in a virtual avatar. These cards can only be used for online transactions. It is a one-time card that is created by the finance manager for a specific end-use. Virtual cards are extremely secure because everything from their spending limit to the merchants at which they can be used can be customised and preset. This saves precious time wasted in to and fro of approvals. Optimising workflow and enabling smarter payments is what virtual cards do best. And not just one-time payments, virtual cards can also be used to take care of all your recurring expenses like rent, subscriptions, retainer fees, and so on. You can create a recurring virtual card for all your expenses and the amount is just preloaded on the card right before the payment is due. Putting your repeated expenses on autopilot has never been easier!

Preloaded cards are slowly taking over the corporate credit cards share in the industry. Corporate credit cards, no matter how handy, have their own set of issues that can be addressed easily by preloaded cards. For instance, one of the biggest pain points financial teams face at the end of every quarter is the reconciliation of expenses against the credit card statement. Employees need to save receipts of each expense borne on the company credit card and submit them to the finance team for verification. And that is just one employee with one card! Imagine the plight of the finance team at the end of every monthly or quarterly closing, sitting with a pile of receipts along with a host of expenses on multiple credit cards. The scene is nothing short of a nightmare. This process of manual reconciliation and paperwork can be easily avoided by opting for preloaded cards. Clubbed with a smart platform to track and monitor these cards, preloaded cards can most easily be the answer to all the problems. With built-in approvals and preset budgets, preloaded cards- virtual or physical, are on the fast track to becoming the next best corporate payment tool. While corporate credit cards do have the allure of revolving credit, the end goal is to have a steady cash flow rotation so that there is substantial working capital available at all times for your business. The goal is met by preloaded cards too because when budgets are adhered to, expenses are tracked, and reconciliation is done in real-time, cash flow is maintained.

Give in to the charm of preloaded cards and make your employees happy and your finance team relaxed. Some of the best practices to follow when choosing a preloaded card for your business is:

Virtual cards

Unique card details for each expense are a boon for one-time and recurring expenses that could be set on autopilot without worrying about the card details being stolen and the business account being hacked into.


Creating different spending limits for each card according to the employee hierarchy makes expense management easier

Automated approvals

Built-in approvals for expenses can save a majority of time in going to and fro for a single purchase.

Easy integration

A smart card platform that integrates easily with your existing accounting software so that you don't have to make manual data entries

Remote access

Expenses can be monitored, tracked, approved, and flagged from anywhere at any time.

EnKash is a powerful corporate card and spends management platform that can instantly change the way you handle business expenses. Be it credit, preloaded or virtual, EnKash has a portfolio of all kinds of corporate cards. Make your business expenses smarter with EnKash today!

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