One of the issues that comes up a lot with regards to prepaid business credit cards is what makes it the best. Unfortunately, nothing does. Prepaid business credit cards don’t really exist.
Prepaid cards are the opposite of credit cards. There is no borrowing facility in place, no security, no lending, no bond of any sort. No credit has been taken. It’s a prepaid business card, that means the card has been loaded with money - usually cash or money transferred in from another account and there’s a set limit on the account. No overdraft is in place, once the money’s spent, it’s gone until the card is loaded up with cash again.
The good thing is there are plenty of advantages to having a prepaid business card. Discovering the ‘best prepaid business credit card’ may be difficult, as in reality every provider offers something slightly different and you need to find the right card for you.
But there are a few key features that you should consider when choosing your prepaid business card provider.
These six fees are ones you need to pay attention to, because they should inform your expenses policy to a degree and prepare you for how much money you might lose to fees.
The card fee is simple, some providers will charge you per card or give you a few free and then charge for any lost or extra cards.
Annual fees are the cost of having the prepaid card facility available to your business. It’s usually taken on the day you started using the product. Sometimes these fees scale up with the number of cards your business is using.
Transactions fees are the extra amount taken from your prepaid card each time you spend on it. These were more common a few years ago but most providers won’t charge them today, if you’re being charged a transaction fee you should ask your provider why. And consider switching to a different service.
International ATM fees are the cost of withdrawing cash while abroad, these fees are often around $2.50 to $3 per withdrawal. It’s not a huge amount but a stringent usage policy that avoids withdrawals could save you from having to spend money on unnecessary fees and also it helps you keep a close eye on what your employees are actually buying.
Domestic ATM fees work in exactly the same way, sometimes they’re cheaper, but often they’re the same nominal cost to discourage cash usage.
Foreign transaction fees are where your company can really be stung. These are often a percentile of the withdrawal rather than a fixed cost, so it scales up with the costs interminably.
Of course if you were looking for the best prepaid business card, or at least the most efficient and cost-saving prepaid business card. You’d prefer one that won’t charge extortionate fees when you or your employees chose to pay for a hotel or transport while travelling for work.
When looking for the right prepaid business card, make sure you shop around and look at the features and benefits of each card provider. It’s always a good idea to work with a company that has no hidden fees and is upfront with you about the costs from the start.
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