Pennywise
Pre-paid Business Credit Cards
by: Sahil | last updated: November 06, 2009
Category: Premium Credit Cards | Tags: Pre-paid business cards, secured business cards, business cards
Category: Premium Credit Cards | Tags: Pre-paid business cards, secured business cards, business cards
As the name itself suggests these credit cards are used for business purposes and are prepaid. Usually such cards are given to employees by the company when on business trip or as a reward or incentive. These cards cannot be called credit cards per say since the amount is already paid and the consumer is not under any financial liability.
The concept of pre-paid business credit cards is completely the opposite compared to traditional ones. These cards have some advantages as well as disadvantages for the companies that are issuing them to their workers. It completely depends on the amount and the type of company that is issuing it.
One of the advantages of these pre-paid business cards is that they have the company name embossed on them. This not only advertises the company name but also gives it a professional touch. Another apparent advantage is that there is no interest to be paid by the company and the card cannot be misused by the employees.
A disadvantage of such cards is that there is a transaction fee every time the card is used. However since it is prepaid, there is no chance of the card going over the limit or being used by the employee in a careless manner.
Pre-paid credit cards can be very good for businesses that have just begun operation since these cards do not require any credit history. Even if the applicant has a bad credit history the card is issued without any problems and does not affect the persons or companys credit rating.
It becomes easier for companies to keep tack of spending of individual employees by issuing business credit cards. However some companies do not do this check since the amount that is available to the employees is already set and not crossable ruling out any chance of overspending.
Another disadvantage of such cards is that they are not accepted by some retailers such as gas stations or car rental companies. Therefore it becomes imperative for businesses to check which companies accept their pre-paid cards before issuing them.
The bottom line is that a pre-paid business card is a much better option for business related expenditures and help in keeping the personal account separate from business accounts. Pre-paid business cards are easy to use, carry, and economical at the same time. This makes them ideal for business related transactions and moreover these can be used as gift cards for employees based on their performance.
Related Guides
Travel Rewards Credit Cards
Travel reward credit cards are those that offer free miles and other services for using the card …
Instant Business Credit Cards
An instant business credit card is approved instantaneously upon request. There are rewards as we…
5 Premium Credit Cards
Premium credit cards are those that are suitable for people with money to burn and very few peopl…
Cash Credit
Cash credit is the issuance of a short term cash loan to a business entity. A cash loan of this t…
Smart Cards
A smart card or a chip card is one that has embedded integrated circuits that can process data. T…
Guide Discussion & Comments
blog comments powered by Disqus
Hi there,I am Sahil
I hope you like this guide and benefit from it.
Add me as a friend to track changes to this guide as well as my new guides.
Like this guide?
Stats
83 views
0 star rating
0 Other guides by Sahil
Corporate Credit
Corporate credit is the acquisition of funds or other services either from a vendor directly or from a lender with a promise of repayment at a later date. Co…
Credit Squeeze
A credit squeeze is a term in economics where two factors occur at the same time to stifle the supply of credit. Usually during credit squeeze interest rates…
Cash Credit
Cash credit is the issuance of a short term cash loan to a business entity. A cash loan of this type if frequently made use of to meet the expenses related t…
Credit Counseling
Credit counseling is a broad term that offers education to customers about how to avoid debts that cannot be repaid. Credit counseling can be paradoxically d…
Visa
Visa Inc. which is commonly referred to as VISA (Visa International Service Association) is a multinational corporation based in California, USA. The company…
