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 pre-load the card and then give it to your staff to spend, imposing spending limits if necessary.
You and your employees can 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. It’s also more secure than a credit or debit card because it’s easier to deactivate if lost or stolen.
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.
The best prepaid cards
Here are some of the best prepaid cards on the market. Most are part of a broader package while others are standalone.
Wallester
Number of cards – Unlimited
Account fee – None
Accounting integrations – None
Features – Budgeting tools, customise cards with your business logo, use with Apple Pay and Google Pay
Get started with WallesterEmburse
Number of cards – Unlimited
Account fee – Custom
Accounting integrations – QuickBooks, Xero
Features – Set spending limits, set category restrictions, activation authority, managers can approve requests for additional funds, no fees for domestic transactions
Equals Money
Number of cards – Up to 100 physical cards on Business account, over 100 for Custom account
Account fee – Business (£50 per year), Custom (bespoke)
Fees – £1.50 per cash withdrawal, £10 per additional card issued
Accounting integrations – Xero
Features – Unlimited users, no monthly fees, free virtual cards
Revolut
Number of cards – 3-200, depending on the type of card
Account fee – Basic (£0), Grow (£19), Scale (£79), Enterprise (custom)
Fees – Add members for £5 per month each
Accounting integrations – Xero, QuickBooks, Sage, FreeAgent
Features – Borderless accounts, fee-free transfers to Revolut accounts, hold and exchange 25+ currencies
Pleo
Number of cards – Not stated
Account fee – Starter (£0), Essential (£39 per month)
Fees – £5 per ATM withdrawal on the Starter package
Accounting integrations – Xero, Quickbooks, Sage
Features – Over 50 currencies, earn up to one per cent cashback, first three Pleo cards free, custom spend controls
Airwallex
Number of cards – Unlimited
Account fee – £45 set up fee, no monthly fee
Fees – Add multi-currency cards for £5 per user per month, first five cards are free
Accounting integrations – Xero
Features – Employees can spend in over 40 currencies, pay global expenses directly from multi-currency wallet balance, auto convert currency, consolidate team expenses into single card
Soldo
Number of cards – 20, 30 or unlimited virtual and physical cards (dependent on your plan)
Account fee – Fees start from £21 per month, depending on the package
Fees – One per cent for international transactions, ATM fees start at one per cent with a £2 minimum, £1 issuance fee for a virtual card, £5 issuance fee for a physical card. 50p fee for temporary virtual card
Accounting integrations – Sage, Xero and Quickbooks
Features – Apple and Google Pay, standard receipt capture, outbound bank transfers, advanced card rules and limits
Tide
Number of cards – All paid-for plans come with at least one prepaid card. Up to 50 Tide prepaid cards per account
Account fee – Free (£0), Plus (£9.99), Pro (£18.99), Cashback (£49.99)
Fees – £5 for each additional card
Accounting integrations – QuickBooks, Xero and Sage
Features – Set individual spending limits with instant editing from the Tide app, scheduled payments, create and send invoices for free, cashback with cashback account
Card One Money
Number of cards – Not stated
Account fee – £12.50 fee per month, with one-off £55 application fee
Fees – UK cash withdrawals cost £1.50. Cash advances from NatWest for £5. First card free, each additional is £5 per month and can be pulled directly from your balance. Replacements are £3.95
Accounting integrations – N/A
Features – Up to 3.5 per cent cashback at selected retailers, cards can be loaded online or through the app. Max limit is £5,000
ANNA Money
Number of cards – Between one and unlimited cards, depending on the package
Account fee – Pay as you Go, Business (£14.90 per month +VAT), Big Business (£49.90 per month + VAT)
Fees – £1 withdrawals depending on the package, £1 outside those limits, extra cards cost £3 per card per month
Accounting integrations – N/A
Features – One per cent cashback on spend with certain companies
Wise Business
Number of cards – Not stated
Account fee – £45 opening fee
Fees – Add unlimited users for a flat £3 per person
Accounting integrations – Xero, QuickBooks, FreeAgent
Features – First £200 withdrawals are free, once you’ve paid the opening fee, you can add expense cards with no monthly fees, 0.5 per cent cashback on eligible transactions
Expend
Number of cards – Unlimited
Account fee – Expend Essential (£8.99 per user per month), Expend Explorer (£11.99 per user per month)
Fees – ATM withdrawals will set you back from £1 in the UK or £2 outside the UK, Additional platform users at £8.99 per person
Accounting integrations – Xero, QuickBooks, Sage, FreeAgent
Features – Smart company cards with individual budgets and limits, 30-day free trial, organise employees into teams, dedicated account manager
Volopa
Number of cards – Unlimited
Account fee – Standard Business Account (£0), Bespoke Business Account (request a quote)
Fees – ATM transaction start at one per cent of the amount with a minimum fee of £2
Accounting integrations – Xero and Quickbooks
Features – Supports 14 different currencies, free top-ups and replacements, real-time visibility and control of employee spend, make payments across 180 countries in 36 currencies
How do I find the right prepaid business card?
There are a few things to factor in when looking for prepaid business cards, such as what sector your business is in, how many people there are in your company and how you’ll be affected by fees. If in doubt, do a free trial if there is one or speak to an accountant.
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