Most businesses even industry leaders still rely on corporate credit cards and reimbursement to manage their expenses, this is despite the huge advancement in payment technology. We as individuals have many options to make payments and manage our money with things like Apple pay and challenger banks increasingly becoming part of our lives. This cannot be said when talking about the corporate world who are very much behind the curve in how they are making payments and managing their money.

In this article we shall look at how prepaid cards can revolutionise the way that businesses manage their corporate expenses.

So, what are prepaid cards? Prepaid cards are almost identical to any other payment card you can think of and can be used in the same manor. Whether you are looking make a purchase online or simply withdraw cash prepaid cards allow you to this. Where they differ is given away in the name, the card is pre-loaded. By being pre-loaded and not connected to the company’s bank you cannot spend a single penny more than what is on the card thus providing a powerful tool for companies. The card that Volopa issues is also integrated with an online dashboard that administrators can set spending limits, restrict types of purchases and track payments in real time along with many other useful features.

How do prepaid cards work?

For employees, Volopa cards work in the same way as their personal card do. They can make purchases by chip and pin, touch or by entering the long number across the front of the card when making an online purchase.

The reason why this is all so seamless is that Volopa cards are powered by MasterCard who are one of the Worlds most trusted payment brands and are accepted at millions of stores across 200 countries thus giving you great flexibility.

Before employees can purchase things with their prepaid Volopa card, the card administrator first needs load their account with funds. The administrator sets out the rules for the card including transaction limits, types of payments and even have auto loads in place so if the funds on the card drops below a certain level it will automatically top up. Once these are in place and the funds are topped up and the card is ready to use!

Why should my company use prepaid cards?

There are two stand out reasons as to why prepaid cards are superior to credit cards. They are as followed.

Firstly, the way company credit cards are used for purchases are inherently flawed. Overall, they follow one of these patterns.

  • Only senior members of staff have company credit cards due to the level access to company funds.
  • A few managers may have a card for similar reasons to the above statement.
  • The accounts department only have cards thus meaning every purchase must go through them.

All these scenarios provide extra red tape for employees thus slowing down their ability to do their job. While it may seem more secure to have an approval system this ultimately leads to more expense claims.

A prepaid card expense management programme like Volopa’s empowers your staff and allows them to spend when they need to. The expense management platform gives the company piece of mind as they can set spending controls and monitor employee spending in real time. Not to mention that as the funds available are predetermined you are not giving people unlimited access to funds like a credit card would.

Secondly, one of the biggest challenges for an accounts department is the monthly expense report. Hours have been lost chasing people to find the receipt for a purchase and making sure it matches the employees request form.

A good prepaid card programme solves this problem. Because each employee is issued with a card the accounting department can see not only what is being spent but who is spending it. This along with an easy-to-use mobile app lets employees upload receipts as they spend allowing the accounts department to match this off against the payment.

Conclusion

Payments have come along way in the past 10 years. Technology has advanced to a level whereby traditional ways of doing things are becoming dated and inefficient. Prepaid cards are a prime example of technology making your business practices more efficient. We are increasingly seeing companies embrace this new technology and it is our belief that it will not be long before it is standard practice.

If you are interested to learn more about how Prepaid cards can help you then do get in touch via www.volopa.com

Article by Alex Lampert-Zakiewicz