Prepaid credit card for employees: How to use, advantages and disadvantages & best provider

A credit card for employees is crucial for companies to streamline operations, manage online purchases, facilitate business travel, and more. While traditional credit cards come with high costs, bureaucracy and a certain amount of risk, modern card alternatives offer most of the advantages while minimising the disadvantages. Learn everything you need to know about prepaid credit cards in the following article.

What is a prepaid credit card for employees?

The term “prepaid credit card” is often used synonymously with the term “prepaid card”, but has relatively little in common with traditional credit cards.

In general, cards can be divided into three categories: Prepaid, debit and credit cards.

With prepaid cards, users must first deposit money into the account before they can use the card. At the same time, a prepaid card is not linked to the regular bank account, which ensures greater security.

Debit cards, on the other hand, are linked to the current account and transactions are carried out in real time. Consequently, only the money that is already in the bank account can be spent. Companies can customise their debit cards with smart control features such as spending limits or individual expiry dates to maximise security.

A credit card functions differently by providing the account holder with a loan from the issuing bank, which must be repaid at varying intervals depending on the provider. While credit cards offer high user convenience, they also come with higher costs.

When is a prepaid credit card beneficial for employees?

A prepaid credit card or debit card for employees is especially valuable for companies, offering your staff more flexibility while keeping risks, costs, and administrative effort to a minimum.

Prepaid or debit cards enhance efficiency across various departments, from purchasing to accounting. A prepaid debit card for companies is also ideal as a substitute for fuel cards for businesses, so that drivers at home and abroad remain flexible and expenses can always be covered.

Most cards are linked to international payment networks such as VISA or Mastercard, making them ideal for business trips to withdraw money abroad.

Prepaid credit card for employees: Advantages and disadvantages

Nowadays, even SMEs with a small number of employees can benefit from the advantages of a prepaid credit card for employees. While traditional credit cards are often only suitable for large companies, prepaid and debit cards are issued to companies of all sizes with little bureaucratic effort.

Prepaid and debit cards function similarly to regular credit cards, utilizing payment networks like VISA or Mastercard. However, they offer lower risk, as companies can maintain full control over spending through smart control features and administrator rights, allowing them to set individual budgets and restrictions for each card.

Another advantage: depending on the provider, the cards are not only available physically but also virtually and can be used immediately after ordering. Virtual mastercards are a quick way to gain better control over all online transactions and save costs when making online payments, for example for planning tools or marketing expenses.

One disadvantage is that these cards do not grant credit. This means that your account must always be sufficiently covered in order to make purchases or withdraw money.

Advantages

• Can be used like a regular credit card
• Limited risk
• Low costs
• Full control with administrator rights (Smart Control Features)
• Physical and virtual
• Ideal for companies of any size

Disadvantages

• No loan possible
• Account must be sufficiently covered for use

amnis: The best card for your employees

amnis provides a debit card for your company that not only offers your employees greater flexibility but also helps lower costs, especially for cross-border operations.

The amnis card is a true multi-currency solution, enabling you to manage, receive, and send various currencies. Even if you don’t hold the needed currency, the exchange fees are based on a favourable and transparent pricing system.

Both physical and virtual cards can be easily ordered online, with virtual debit cards available for immediate use. With amnis, you can create unlimited virtual cards and manage them through a user-friendly self-service platform, allowing you to block cards or adjust limits with ease.

Tags allow you to categorize card transactions by project or department, providing an automatic overview of all expenses on a single dashboard. Uploading receipts and importing transaction files into your accounting system is simple, speeding up expense recording. Our smart mobile app also lets you manage transactions, upload receipts, and customize settings effortlessly.

amnis upholds the highest security standards, including limits, geoblocking, cash withdrawal restrictions, temporary deactivation, and blocking features. You have full control, with no drawbacks compared to a conventional prepaid card.

Your free demo account with amnis

amnis is an international financial services provider that optimises your transactions. While the smart business debit card enables transparent and cost-effective payments in any currency, your amnis account also lets you make local payments and transfers within the USA, Canada, the UK and the EU. Open an amnis demo account free of charge and without obligation to test all the benefits for yourself and find out how much money you can save on foreign transactions.