Like consumers, businesses use prepaid debit card programs to cover a variety of expenses. Some of the benefits individuals receive from prepaid debit cards also benefit businesses, such as PCI DSS compliance for cyber security and the option to use the card globally.
There are also some perks of prepaid debit card programs that benefit mainly businesses. If your business is considering participating in affiliate debit card programs, here are six reasons to open an account.
1. Safe Solution for Petty Cash
The amount of petty cash kept in business offices is steadily declining. According to a 2017 report from The Balance, “Because the cash economy is getting smaller, and people are using debit and credit cards more for small purchases, the use of a petty cash system (with a “cash drawer”) has diminished.”
Nonetheless, some business administrators feel petty cash is still essential for those rare, cash-only purchases. Because prepaid debit card programs load cards with funds that are the digital equivalent of cash, they largely replace the need to keep a cashbox. If you need to buy something from a cash-only business, you can use the card to withdraw money from an ATM.
2. Few (If Any) Service Fees
Prepaid debit card programs typically have fewer fees than credit card programs. Activation fees, monthly service fees, and annual fees are often waived. In addition, because money in the account belongs to the cardholder, the card issuer doesn’t earn interest on the balance.
Credit cards allow you to “buy now, pay later”. Debit cards offer a different advantage. When you use debit instead of credit, you don’t accrue debt against your business. Instead, you settle the balance immediately and save money by avoiding credit card fees.
3. Great for Tradeshow Buying
Many businesses attend trade shows to see new offerings for their industry, without intending to buy. However, there are instances when companies find something so perfect for their needs, there’s no reason to delay the purchase. They want to buy immediately.
Using a prepaid debit card is great option for two reasons: it doesn’t involve the fees of a credit card, and it’s safer than carrying enough cash to purchase a business solution that requires a significant investment. You won’t receive a bill at the end of the month, and you avoid carrying a wad of cash that makes it look like you earn money as a pool shark.
4. Control Business Travel Spending
There are numerous stories about business professionals who overspend company funds while traveling for work. From charter trips on private jets to dining at five-star restaurants day and night, many well-meaning employees have let the prospect of spending carte blanche with company credit cards entice them to make poor buying decisions.
Overspending company funds during exciting business travels could tempt anyone, but using a prepaid debit card for business spending can encourage responsible purchases. The card can be loaded with the entire travel budget, leaving the business traveler to decide how to spend it, with certain limitations.
If legitimate, unexpected expenses arise, and additional travel funds are needed, the employer can remotely load the card with additional money from the travel budget.
5. Secure PIN Code Protection
Many clerks that process credit transactions don’t request I.D. to verify card ownership. The buyer simply selects the “credit” option on the point-of-sale (POS) interface, swipes the card or inserts it in a chip reader, signs the transaction receipt if the value of the purchase exceeds a certain amount, and walks out with the product — no questions asked.
Because they require a PIN to complete the purchase, cards from prepaid debit card programs inherently add security to the transaction. If you don’t have the PIN number, you aren’t able to make a purchase; it’s that simple.
PIN code protection also benefits employees who have business spending accounts via prepaid debit card programs. Assigning a different PIN to each employee who uses a business debit card encourages responsible spending. If someone happens to overspend, you immediately know who it is, eliminating the need to question a group of employees who use the same PIN number.
6. Rewards for Referring Customers
Affiliate debit card programs have an added benefit that some prepaid debit card programs don’t: You receive a reward — financial or otherwise — for referring prospective customers to your card issuer — prospects that then become paying customers.
Some businesses profit handsomely from affiliate rewards. They’ve used prepaid debit card programs for years, and they use their experience to offer valued advice. What’s more, seasoned businesses can use their brand appeal, success, and good standing in the industry to be highly convincing when promoting debit card programs to prospects.
If your company is in the business-to-business (B2B) segment, and your services include financial advice, your situation could be tailor-made for reaping affiliate card program benefits, while benefitting clients by introducing them to a great prepaid debit card option.
About Allied Wallet
Allied Wallet is a provider of digital payment solutions for businesses and consumers. We offer innovative merchant services and business solutions along with global payment gateways that accept all official currencies worldwide. Whether you need an account for business expenses or personal spending, our PCI DSS compliant solutions offer excellent cyber security, so you can purchase with confidence that your information is safe.
To learn more about our affiliate debit card programs and other services, call us today in the U.S. at (888) 255-1137, phone us in the U.K. at +44 203 318 8334, or refer the contact form on our business website. We look forward to helping you reap the benefits of using our prepaid debit card programs!