13 of the best prepaid business cards

What are prepaid business cards?

Prepaid cards offer a flexible way for small businesses to manage their cashflow and expenses. It can be an important tool for budgeting as only the amount of money pre-loaded on the cards can be spent. You, as the business, can top up the card with funds and then give it to your staff to spend, imposing spending limits if necessary.

You and your employees can then use the card for a wide range of expenses including meals and entertainment or paying suppliers.

Physical and virtual cards are available. Virtual cards tend to be used for spending on one-off online purchases and subscriptions. On the flipside, a physical card is better if you’re making more purchases when you’re out and about. Whether you opt for a physical or digital card will depend on what sector you’re in and what you plan to use the card for. A prepaid card is also more secure than a credit or debit card because there’s only so much the thief can be spend before you manage to deactivate it.

What’s more, both can be added to a digital wallet such as Apple Pay or Google Pay.

Prepaid cards could be a better shout for small businesses that struggle to access credit cards due to having a poor credit rating. Get them as part of an existing business account offering or as a standalone card.

Prepaid business cards: pros and cons

Of course, there are advantages and disadvantages to prepaid business cards. Let’s take a look.

Pros:

Can be issued and used instantly: If you have new staff members joining your business, you can get them set up quickly and efficiently.
Don’t need a credit check: Unlike other financial products, you don’t need a credit check to get an account. As mentioned, this could make it a more suitable option if you have a blemished credit history.
Convenient: If they’re part of your existing business bank account, they’re easy to integrate into the rest of your business’ finances.
Easy to use: Once they’re set up, they’re good to go. As long as you’re within your limit, you can spend online or at places with a point-of-sale system.
They’re widely available: Both through your banking provider and as a standalone, there are plenty of prepaid card products around.
Quicker at processing expenses than a credit card: This is ultimately better for staff as they’re out of pocket for a shorter amount of time.
It can be used abroad: If you or your staff travel a lot for business, you can keep the trip on a budget with a prepaid card. Just make sure you can load multiple currencies onto it.

Cons:

Quite heavy on fees: Prepaid cards may have fees in areas you don’t expect them, for example loading the card or going over your limit.
Can’t build a credit score: It won’t help you build up a credit rating, which could be particularly useful if you’re a new business.
Fewer rewards than a debit or credit card: Though some offerings have cashback.
Not covered by Section 75: Unlike a credit card, prepaid cards aren’t covered if there’s a breach or any misrepresentation by the seller.