Credit card or virtual card, which is better for online shopping?
admin / June 1, 2022
What are corporate prepaid cards? In the 80s and 90s of the last century, coinciding with the tremendous economic take-off of technology, prior to the bursting of the bubble in the late 90s, it was really popular and frequent the figure of the corporate credit card.
At that time, prepaid cards were not yet widespread. In fact, the closest thing was the company debit card, in which the control of expenses was given by the shared use of certain accounts and the presentation of the corresponding receipts by the employees using the cards.
Today, the prepaid card concept has largely evolved the use of corporate cards.
First of all, you have to consider the very nature of prepaid cards to understand why they are better than other options such as credit cards.
By its very form, a prepaid card can work individually and only against the balance that has been deposited on it. This means that, for example, if different amounts are needed for different cards, it is perfectly possible to recharge them with the amounts needed for each of them.
On the other hand, once the available balance on the card is exhausted, it cannot be used in any way. This was a problem that with corporate credit cards was limited only by the credit on the card itself, while in the case of debit cards, it was limited to the common account to which all the associated corporate cards were charged.
Therefore, the first advantage is the individuality of each of the credit cards, which allows to adjust the expenses to be made according to the expected reality, and not vice versa, to analyze the expenses against the consummated fact of the same. This helps to better control spending, but also to better control the hands courses with the prepaid card.
Another relevant issue that gives prepaid cards an advantage as business cards is the fact of fees. A credit card, although it may contain a maintenance fee for the first year, will generally have some kind of commission, and on the other hand, the cash withdrawal on credit will be an added expense. However, with a prepaid card, this situation will not arise, since there are no issuing commissions, and there is no maintenance commission either. Therefore, in any case, the commissions will be those corresponding to cash withdrawals from the different ATMs where it is operated.
Finally, it should be taken into account that, on the company account, it will be possible to associate different personalized prepaid cards, thus facilitating the identification of the user, and the control of expenditure means working only against the deposit made, with the personal control of each of the cards individually.