Maximizing wealth and expanding reach is what business development is all about! For this, you need to know where you are spending your money most. Records and statistics point out that esteemed organizations spend as much as $430 billion using credit cards annually. It is where the concept of prepaid debit cards came in during the 1990’s.
Most credit card companies realized that most people aren’t able to opt in for the majority of their credit card offerings. Even those people, who did qualify for a chosen section, were found defaulting on the outstanding balances. They declared bankruptcy which also resulted in several losses.
This market needs had to get addressed. And to fill in the demand came in the secured prepaid credit card. The card ensured in having a credit line that got “collateralized” by a certain amount which people deposited in the bank.
The advantages of prepaid credit cards
For people who are a lot into online shopping and other online transactions, the prepaid credit card is the best fit. It’s perfect for in-store and secure online shopping that customers engage during the end of season sale or other times to gain the maximum discount. That aside, these credit cards also have its own set of advantages.
Zero interest rates
The prepaid credit cards don’t have high limits as the regular credit cards. Hence, instead of fretting about interest rates you can create the parameters. As an individual or business, you can issue many credit cards you want.
And every card that gets released has a distinct number which isn’t related to a credit limit or company bank account. Instead, you will have complete liberty to upload the chosen fund amount to the individual cards.
Read: Credit Card Arbitrage
Enhanced budget control
Over-expenditure is one of the crucial issues that most people face. Creating and adhering to a budget can be challenging when you have many departments asking for financial aid.
To make this process streamlined, you can switch to the prepaid credit cards. Depending on your budget requirements and projections, you can add the necessary funding to your card. You can then issue the same to your department heads.
PIN and Chip security
In addition to the physical and virtual card choices, the prepaid credit cards also have other features. The cards offer its users with high-end security. All the data of the card gets stored in a magnetic chip. The cybercriminals aren’t able to steal the information that is present in the credit card.
And in addition to this, the card can also be secured with a PIN. And the PIN is usually of 4 digits and should be entered before you make any online purchase. When you have such secured arrangements, you don’t need to fret about another entity having access to your account and money.
Physical and virtual card choices
Many people prefer to carry out all their transactions online. When opt-in and use traditional credit cards, it costs your company security as well as your funds. So rather than making your card vulnerable to any cyber threat, it’s best to opt in for something more secure. The prepaid business credit cards can help.
You can use the prepaid credit cards both for in-person and online transactions. The corporate prepaid cards, however, provide a particular security level that is impeccable. Since the cards don’t get linked to any credit limit; you don’t have to fret about online threats and identity thefts. When you want to use it online, you will get a virtual credit card.
The number, however, keeps altering randomly and automatically. And this makes it very tough for the cybercriminals to have access to your account and hack it. Irrespective, of whether you are making an online transaction or paying for a corporate dinner, a prepaid business card provides the best safety.
Streamlines the payroll services
Most people think that companies use a direct deposit to pay their employees. The truth is that close to 40% of the companies don’t practice this. It’s only a 30% of these companies that provide a direct deposit record 100% participation. When the numbers are this low, it is essential to offer payroll choices for all your employees. Rather than cutting on the paper checks for that one that doesn’t want to take part in direct deposit, it’s a smart call to provide them with a prepaid credit card.
The prepaid credit cards get used for all kinds of online purchases. So, any individual or employee can withdraw money and pay bills using this card.
The prepaid credit card has made life easy both for individuals and employees. Today, employers can use this card to load their employee’s salary along with all kinds of reimbursements, easily and fast. If you want to streamline your expenses and online transactions, switch to a prepaid credit card for smooth operation and enhanced security.