The Benefits of Prepaid Business Debit Cards for Workers in the Field

Overspending is easy when using a credit card, and dipping into any personal finances to cover company expenses is always a teeth grinder for employees. So, how do you navigate this balance of efficient cash flow management while liberating your employees to spend on what's needed?

Prepaid business debit cards reduce the stress for both the company and the workers in the field. With a cap on available funds, there's no confusion about who pays for what and how much is expected to be spent. 

How Prepaid Debit Cards Work

Prepaid debit cards work like regular debit cards, but you load money onto them upfront without the requirement of opening a bank account. It also gives workers in the field a clear picture of what they're spending limit is.

In other words, no more excessive spending on happy hour drinks for "networking events" at the local pub (unless more cash is loaded for such an occasion). 

According to Inc.com, employees who use company credit cards spend nearly 27% on personal expenses. While 23% of businesses allow this, there can be many discrepancies when it comes to keeping track of unauthorized purchases. 

Prepaid Debit Cards vs Business Credit Cards

With prepaid debit cards, there's more control over how funds are spent. Unauthorized purchases, fraud, and overspending are mitigated where some cards are FDIC insured up to $250,000, depending on the card.

And since prepaid debit cards offer instant visibility on purchase transactions, workers in the field also don't need to spend time filling out reports on payments.

While business credit cards do have their advantages, overspending is all too common. This can lead to debt and high-interest fees if not properly managed.

Plus, tracking expenses for credit cards is more complicated. Things like "entertainment expenses" can quickly become questionable. 

Top 8 Benefits of Using Prepaid Business Debit Cards for Workers in the Field 

The prepaid card market size is expected to grow to $41.57 Bn by 2028 at a compound annual growth rate (CAGR) of 13.4%, according to The Business Research Company. 

To that end, if you're still curious whether prepaid business debit cards are the right move, here are the top 8 benefits of using a prepaid business debit card.  

1. Preventing Debt Build Up

With prepaid debit cards, you can only spend what’s loaded—there’s no risk of racking up debt or dealing with high-interest charges.

2. Quick and Easy Approval Process

No lengthy applications or credit checks are needed; prepaid cards can be issued and activated quickly, getting employees ready to spend.

3. Enhanced Control Over Field Expenses

Set spending limits for each card, reducing the risk of employees going over budget or making unauthorized purchases.

4. Reducing Fraud and Mitigating Financial Risks

Prepaid cards minimize fraud by limiting how much can be spent. If a card is lost or compromised, only the preloaded amount is at risk.

5. Simplifying Travel Expenses

Prepaid cards are ideal for travel and make it easier for employees to access funds without the need to carry cash or submit reimbursement forms.

6. Real-Time Payment Tracking for Field Workers

Managers can monitor spending in real time. No more second-guessing field expenses as they happen.

7. Instant Access to Funds for On-the-Go Purchases

Funds are immediately available for quick purchases like fuel, supplies, or meals. A convenient way to keep things moving along.

8. Seamless Integration with Reporting Tools

Many prepaid card systems integrate directly with accounting software, making it easy to track, categorize, and report on expenses.

How Much Cash Can You Put on a Prepaid Card?

How much cash you can load onto a prepaid card depends on the card provider.
Some allow you to load up to $10,000, while others might cap it at $5,000 or less.

It’s kind of like choosing an airline—some let you bring two carry-ons, while others charge a fee for every item, from your laptop down to your toothbrush. 

Conclusion 

When employees are in the field, they need access to funds for essentials like flights, client dinners, or tools—and expecting them to pay out of pocket isn’t ideal. At the same time, you don’t want to hand over full spending freedom.

Prepaid business debit cards strike the perfect balance, offering flexibility with allocated funds while keeping spending under control.

At Profit by Payments, we are your financial toolkit that helps you manage employee spending. Generate invoices, stay up to date, and issue virtual or physical cards for your employees.

Plus, if you're looking for FDIC coverage up to $1 million, automatic receipt tracking, or the flexibility to reload cards in seconds, we've got you covered. Reach out for a free demo and see how we can transform your employee spending.

References

Expert Opinion By Suzanne Lucas, Human resources consultant and founder (2024) Close to a Third of Employees Use Company Credit Cards for Personal Expenses. Retrieved by Inc.

Bank Rate. (2024) Prepaid cards vs. debit cards. Retrieved by FDIC.

Prepaid Card Global Market Report. (2024) Prepaid card market definition and segments. Retrieved by The Business Research Company.