Debit card solution, 19 best reasons it's good for business
Prepaid debit cards are perhaps the most embraced methods of payment used by organizations worldwide.
November 22nd, 2016
Recent studies have shown that there has been an increase in the usage of prepaid debit cards (over 50% between 2012 and 2014).
The reason for the increase is that prepaid debit cards have a variety of benefits. Most organizations prefer using corporate prepaid debit card solutions that enable them to manage their payout transactions that include commission, travel, expenses and wages. Some of the benefits of adapting a prepaid debit card solutions include;.
Prepaid debit cards do not need credit check
Getting approved for a credit card can be really difficult if you have a thin or bad credit history.
The good news is that prepaid debit cards do not need a credit check, which means basically anyone can acquire one.
The cards can be used to purchase goods from merchants as long as they accept the affiliated credit network, e.g., MasterCard or Visa. However, it is important to note that most prepaid debit card do not relay your activity to credit bureaus, meaning using a prepaid debit card won't help in building your credit history.
The prepaid cards make it easy for you to pay your employees
This is perhaps why it is advisable for organizations to opt for the use of these cards. Employees can get their money quickly without experiencing any delays. In addition, you can save time and money compared to when you are using a cash checking service which charges exorbitant flat fees.
Prepaid debit card programs will also allow companies to pay their staff even if they are operating from abroad.
Setting up the Standard or White label card program is quick and easy. Contact us and we will organise it for you.
Prepaid debit cards allow online shopping and payment of bills
A prepaid card will allow you to buy goods online or over the phone by acting like a debit card.
Prepaid debit cards usually have a bill pay function that will enable you to set recurring and one-time payments. Keep in mind that the merchant can cancel your service if you fail to make the monthly payments.
You won’t have to worry about overdraft fees
Overdraft fees for checking accounts can really weigh you down. However, pre-paid debit cards feature no overdraft fees.
It is reported that almost 72% of survey respondents who don't have membership in banks usually use their prepaid debit cards in order to avoid the overdraft fees. However, if you already have a bank account and you would like to avoid the overdraft fees, the best thing to do is to disable the overdraft protection on your checking account.
They are helpful in budgeting
Prepaid cards are good budgeting tools since they allow you to load a specific amount of money for every week or month. This amount will be what you will be able to spend. However, keep in mind that some cards might charge a decline fee in the event your transaction gets declined at the register.
Prepaid card programs enable companies to make huge savings
Through the prepaid card program, companies can save a lot as it is easier and cheaper to do bulk payments to thousands of destinations at one time.
ATM withdrawals are easy to execute
In the event that the merchant doesn't allow card payments, you can withdraw money from an ATM by using your Personal Identification Number. However, be prepared to pay a little fee.
Boosting customer loyalty
Prepaid debit cards play a key role in building employee loyalty. They generally boost workplace morale and elevate your business.
Direct deposits are possible
All types of payments or paycheck can be directly deposited to the prepaid debit card.
Increasing brand recognition
Prepaid debit cards will offer an organization a large variety of branding options that will help in increasing brand recognition and exposure.
Easy to implement new service solutions
Prepaid debit cards will allow an organization to implement new solutions for their existing payroll services.
Prepaid cards can be easily be replaced if lost
You do not have to worry if you lose your card. Prepaid debit cards are easy to replace in the event you lose yours. The catch is that you will have to pay a replacement card fee.
Prepaid cards act as a basic type of a bank account
The prepaid card acts as an alternative to a traditional bank account. It also enables users to manage their money.
In general, there is no need for a bank account if you already have a prepaid debit card since they generally allow wages to be paid directly and will enable you to reload via BACS or with cash at Post Office branches.
Companies have more control of their employees’ expenditure
Employers can gain control of their employees' expenditure by setting the kind of merchants their cards will work with. This can be useful in preventing the misuse of company funds.
Employers get to know when and where their employees are spending money. Better yet, if an employee gets dismissed or resigns, their card can be easily turned off with a simple click on your smartphone, desktop or tablet.
Prepaid debit cards show transaction details
Prepaid cards will allow employees to check their account history and balance via SMS, telephone or the internet.
Prepaid cards are perhaps the most convenient cards to use. These cards can be used in online transactions, for ATMs and any other points that accept Visa and MasterCard.
The inclusion of rewards programs
Some prepaid companies offer rewards to its users. For instance, the ACE Pink prepaid Debit cards set aside a portion of money to help fight breast cancer. They have 'giving back' policy that is helpful to the society.
Prepaid debit cards keep your money safe while traveling
Prepaid cards can be easily used overseas. In the even your card gets stolen, the losses are only limited to your card's amount. The implication is that you won't have to suffer the inconvenience of having a drained bank account.
Efficient reloading capabilities
Prepaid cards can be reloaded online, meaning you don't have to make visits to the store every time you deplete the available balance.
Contact us if you need assistance setting up a White label or co-branded prepaid debit card program.