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 degree of freedom to conduct business transactions, there are still many roadblocks that lead to its inefficient usage. In this blog, we will learn more about corporate Prepaid cards and why they are far more optimal than the regularly used corporate credit cards.
Prepaid cards come as a virtual credit card that is already 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 in Prepaid Cards is that there are no credit cycles or revolving credit associated with it. You pay with what you have. Prepaid cards are not linked to the company's bank account which makes them less prone to expense fraud. But in Corporate Cards, there is not set of limits and the expenses are charged from the company’s account.
Being a business owner, you can easily hand them out to trusted employees to give them independence over financial decisions. Prepaid 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 prepaid card, he will first need approval from his manager. Once his expense is authorized, access is granted to him.
In Prepaid Cards, 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. Many Fintech Credit card companies formulate the prepaid cards and design the algorithm as per the benefit of the firm.
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.
Prepaid 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 customized and preset. This saves precious time wasted in approvals. virtual credit cards in India enabled many businesses to manage the cash effectively.
Optimizing 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.
Being an Indian, you can create a recurring virtual card India for all your expenses and the amount is just prepaid on the card right before the payment is due. Putting your repeated expenses on autopilot has never been easier!
As an entrepreneur, if you are in a dilemma to know what is Corporate Credit Card? Then here, you will get the answer. A corporate credit card is just like an ordinary credit card where the employees get the authenticity to do the expenses for official purpose and the amount is deducted from the business account.
Corporate Credit Card India gives a major support to the businesses but it has some setbacks, because the limit is not set and the unexpected expenses done by the employees through the corporate cards can be a severe threat for a business.
Prepaid 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 prepaid cards. For instance, one of the biggest pain points financial teams faces 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.
The above process comprises of manual reconciliation and paperwork that can be easily avoided by opting for prepaid cards. Clubbed with a smart platform to track and monitor these cards, Prepaid cards in the form of virtual cards can most easily be the answer to all the problems.
With built-in approvals and preset budgets, prepaid cards- virtual or physical, are on the fast track to becoming the next best digital lending platform.
While corporate credit cards India 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 prepaid 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 prepaid cards and make your employees happy and your finance team relaxed. Some of the best practices to follow when choosing a prepaid card for your business is:
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.
Virtual Credit Card India is high in demand because of its features and transparency. Moreover, virtual credit card is highly secure and also retains the details of every transaction.
What all benefits you can get with EnKAsh - The virtual credit cards in india?
Creating different spending limits for each card according to the employee hierarchy makes expense management easier
Built-in approvals for expenses can save a majority of time in going to and fro for a single purchase.
A virtual credit card is a utility that integrates easily with your existing accounting software so that you don't have to make manual data entries
Expenses can be monitored, tracked, approved, and flagged from anywhere at any time.