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Getting a Business Prepaid Card for your Business Bank Account

Best prepaid cards for small business

Choosing the best prepaid card for small business will depend on what the main purpose of the card is for you. Many small and medium businesses are choosing to switch to prepaid cards for their employee payroll and the main consideration in this case is the cost to the company, since employees must receive their pay net of all charges. This means that the company bears all the costs. 

Other companies, especially those involved in retail business-to-customer activities, are using prepaid cards for customer incentivization, like rebates and discounts. Such cards have a number of special features, such as restricted spending options, expiry dates, minimum spending levels and so on, that should be built in according to your own requirements.  In all cases of such incentive cards, the card can be free to the merchant with all fees and costs deducted off the value of the card at the user’s end.

Small business prepaid debit cards

Increasingly, small business are switching to prepaid debit cards for controlling employee expense accounts and purchases. The two greatest advantages in the use of small business prepaid debit cards over credit cards or open supplier accounts lie in the automatic limitation on the total amount that can be spent on an issued card, and the fact that it requires less auditing and accounting control whereas credit cards and open account purchases must be rigorously supervised. As well, the fact that the money is pre-allocated means that there can be no sudden or unexpected outflows of cash from the business bank account, whereas for credit cards or purchases on supplier credit, this can be happening unless tight control is being exercised.

Prepaid business cards for small businesses

In creating prepaid business cards for small businesses, most banks are offering direct links between the corporate bank accounts and the cards, so that they can be issued, and the balance on the card maintained and monitored, directly through your company’s usual internet channels to the bank. This will simplify use of the cards, and should also minimize costs both of card issuing and for transfer of funds from the checking account onto cards. As well, there should be automatic procedures for cancelling cards so that any unspent balances can be credited back onto the company’s account without penalty.

How to Get a Business Account Debit Card:

  • Open a business account – Once you have found the right type of business account for your business you will need to go through the standard onboarding process and produce the required documents such as a business license. You will also need a minimum deposit.
  • Apply for a business debit card – Once your business account is approved you can apply for a debit card. This is usually a simple procedure.
  • Choose a PIN – Either the bank will allocate a PIN number to your card or you will have to choose one. Choosing a PIN is usually the final step in getting a debit card for your business account.

Load your Business Account’s Prepaid Card

Once you have a business bank account and an associated debit card you can transfer funds from your checking account to the prepaid card. The easiest way to load your prepaid card is by a simple electronic transfer via your bank’s website. A transfer of this kind can take up to 4 days.

To make a transfer from your checking account to your business account’s prepaid debit card you will need access to your bank’s website; your bank account number and the routing number associate with your card. For security reasons some banks only permit transfers that are linked to your own bank account but others require you to create an external account associated with your card to where funds will eventually be transferred. There are also financial institutions that permit transfers to your prepaid card from authorized accounts of business associates, friends and family. There is usually no fee for reloading your card although there may be a fee depending where the funds are coming from.

Load your Business Account’s Prepaid Card from a Checking Account

It is possible to load a prepaid card with a direct deposit from an employer. An ACH transfer can be set up on your bank’s website to transfer funds from a checking account to your prepaid card. The ACH (Automatic Clearing House) executes an electronic transfer to your prepaid card as if it were from one bank account to another account. Another option is to make a visit to a brick-and-mortar bank branch to load your business prepaid card from a checking account.


Can I get a prepaid debit card for my business?

Prepaid debit cards are offered by most banks both to personal account holders and businesses. The fact that the funds are pre-allocated makes it much easier for the bank to approve the card – there is no downside risk for the bank. If your own bank does not offer this service, you can usually approach any Financial Services company for their card, but it may cost more in fees and transfers than a home bank.

What is a business prepaid card?

A business prepaid card is a card that can be used for spending up to a pre-allocated amount. It functions exactly the same way as a credit card, but has a built-in limit that prevents overspending. It also offers a simpler method of auditing and control of expenses since the funds that are pre-allocated will have been accounted for at the time of transfer onto the card.

What are prepaid business cards used for?

Prepaid business cards are used for two main functions. On one hand, companies are replacing employee cash payrolls and direct debit systems with prepaid cards. The benefit of this is greatly simplifying administration. On the other hand, corporate expense accounts both for employee expenses (travel, accommodation etc.) and purchases (office supplies, goods and materials etc.) can be controlled much better by pre-allocating the budgeted amount onto a prepaid card. That way, recurrent expenditure is catered for automatically by regular transfers onto pre-issued cards.

How do prepaid business cards work?

Prepaid business cards work much the same way as corporate credit cards, with the main difference being that they have a predetermined limit on the amount that can be spent. Each card has a pre-loaded balance and as long as the balance is in positive territory, the card will work exactly like a credit card paying for purchases, withdrawing cash as an ATM etc.

Having a prepaid card for your business account can be extremely useful and can eliminate complications associated with the traditional methods of payment. A business prepaid debit card also avoids overspending and only gives access to a set amount that has been uploaded onto the card. For a business to get a debit card it needs to have a good credit history and positive relationship with the bank. Without good credit small businesses may not be issued a business debit card but generally it is a straightforward procedure.

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