5 things you need to know before investing on prepaid company cards
You might have seen ads for prepaid debit cards that function almost the same as prepaid business cards, a bit like prepaid credit cards and a bit like business cards. Many banks claim that these cards are important for people that don’t own traditional checking accounts as they provide an option to deposit money, pay bills and use an ATM to access your cash.
The groundwork that one needs to invest is something that one can achieve with effort and enough time. All you need is some time, a bit of learning and some evaluation. Below are some of the things you need to know before investing in prepaid company cards.
1. Prepaid company cards are like debit than credit
Prepaid company cards are like credit cards and they spend like credit cards. However, they don’t have any credit. They are more of credit cards. When using these cards, you will be spending your money and not the banks. You don’t have to own a bank account to use prepaid cards. You can deposit money directly into the card. Once your balance on the card goes low, you can reload more money.
Prepaid company cards are mostly used with major card networks like MasterCard, Discover and Visa. You can also use them to pay bills online, buy gas for your car and purchase groceries.
2. Prepaid company cards are an option to banks
For those who don’t have a checking account, they can use prepaid company cards to carry out card-based purchases without having to go through the hassles of using the bank. Prepaid company cards are trendy as you can use them to rent cars or book a hotel room. Moreover, they come with routing and account numbers. This means that your paycheck can be deposited directly onto your card.
3. There is no credit needed
Prepaid company cards were designed for those with poor credit and will always be a great option for people with credit issues. It is impossible to spend beyond your means while using a prepaid company card as the card expires once the money runs out. If you own a prepaid card, you won’t have to get a credit check.
4. Go for features that take care of your needs
When looking for a preferable prepaid company card, always go for the ones that will suit your needs. For instance, some cards can allow you to pay bills online. Some cards will issue payments through electronic checks provided by the card company.
If you wish to use your card for the long term, go for a card that won’t charge you any fees while reloading. Find out if the card company offers purchase protection coverage and if there are any charges at the ATM.
5. Beware of fees
Prepaid company cards don’t come with interest rates compared to other cards. However, they come with fees and they are usually hidden most of the time. Credit cards are required by law to disclose the terms and conditions in advance. You need to clearly understand your investment options as these cards come with common fees such as transaction fees, monthly fees, and fees for paying bills.
Prepaid company cards can charge various fees such as setting up to reloading. With all these fees, you need to develop a good plan on how to manage your finances to see if you can manage the fees. You can always check out Soldo for better ways to manage your expenditure.
Conclusion
Prepaid company cards can be effective tools when it comes to budgeting. You can load your monthly budget on groceries onto the card and use it specifically at the supermarket. Most of the prepaid company cards help clients to manage how they spend their money while reducing risks and costs.