Business expense cards are a very convenient payment instrument. It has a lot of advantages for both companies and their employees. Despite this, many companies still need to start using this tool and thus slow down the development of their business. You can understand them because there are still many myths, so they are afraid to get established. In this article, we will debunk the most established stereotypes about corporate card programs and tell you how corporate expense cards simplify financial management and increase business profitability.
Myth 1: Corporate cards create complications for the finance department
Business corporate cards, on the other hand, greatly simplify accounting. Employees with payment cards can use them at any time when traveling on business or to purchase goods and services necessary for their work activities. The finance department does not need to separately take a statement from the employee about the funds on account and issue this money from the cash register.
When a company has established payment card issuing, it has its platform to manage the card program. This platform makes it easy to manage cards, analyze the flow of funds and see every transaction in real-time. The finance department can control the spending of all employees and not require any additional reports from them. The availability of business cards greatly simplifies the work of accountants.
Myth 2: Business cards are expensive to maintain
You can get basic access to Wallester‘s feature-rich platform free of charge. However, limited functionality will be available:
- co-brand card issuing;
- easy integration through a modern API;
- services that allow you to control costs;
- automated reporting.
This functionality is enough to optimize a small business’s financial processes. For larger companies, purchasing tariffs with functions designed for specific business goals or individual complex personalized solutions makes sense.
Businesses can also benefit from launching their card program. Companies can set their fees for card use, re-issuance or replacement and thus generate additional revenue.
Myth 3: Corporate cards are difficult to use
Corporate cards are as easy to use as ordinary payment cards. You can use them to pay for purchases anytime or night in retail outlets and online stores. There is no need to obtain authorization from management or the finance department every time. Even at the stage of issuance, employee expense cards are given certain limits within which employees are authorized to use them.
Myth 4: Employees will spend more with corporate cards
On the contrary, business cards allow you to reduce corporate expenses and monitor them better. For each card, limits can be set separately for the whole card and transactions.
Data on all employee transactions is available online on a special platform. The finance department can easily track transactions unrelated to the company’s activities. For example, buying groceries outside working hours or paying for dinner at a restaurant.
Myth 5: Business cards can be used to pay for a limited number of items
A corporate card can be used to pay for any goods and services. It can be the purchase of necessary materials and consumables, payment for suppliers’ services, transportation costs, fuel purchase, technical inspection, etc. Virtual corporate cards are very convenient for online advertising or making one-time payments.
You can use the card both in the country of your stay and abroad if you plan to travel abroad. Almost everywhere abroad, you need a card; it is much more convenient to buy transportation tickets and pay for cabs and other services. In most cases, additional discounts are provided for those who use the card for payment. Purchases with the help of corporate cards can be made in any currency, as payment is made with conversion at the most favorable rate. It will be much easier and more profitable than changing currency before traveling to another country and exchanging it back when returning from a business trip.
A corporate card should not be used to pay for personal expenses, as such expenses are easily traced by the finance department and then deducted from your salary. However, it is possible to use the card for such purposes.
Myth 6: It’s hard to manage a budget with business cards
Our corporate card program allows us to optimize financial accounting. Obtaining real-time information on all company cards makes managing the budget much easier. The card issuance platform allows you to create detailed reports on the flow of funds and view general statistics or data on individual corporate cards. In the advanced settings of the platform, there is an option to sort company expenses by purchase type and payment status. Using filters, you can easily find the transactions you need. The finance department will also be pleased with the ability to create account statements with a full overview of transactions for any given period.
Myth 7: A card program is difficult to implement
Modern platforms for issuing corporate cards are based on a customizable API, so you can connect any applications to them, combine them with different software products and create a comprehensive solution that can solve any business problem. Such platforms are quickly integrated into the workflow and have flexible settings and a large set of customizable tools. Thanks to a modern API, you can quickly set up integration with any software that the company already uses for expense management and financial accounting.
Myth 8: It takes a long time to launch a corporate card program
Cooperating with banking institutions can take a very long time to go through all the bureaucratic nuances. First, you must collect a package of documents from the company, then from the employees. And each time to issue, re-issue, replace the card or set the limit, you will have to go to the issuing bank. It is inconvenient and time-consuming.
Using a special platform for issuing cards, there is no need to spend time collecting a large package of documents. Card issuance can begin as soon as possible after signing an agreement with the company providing the platform. Debit, payment and credit corporate cards can be issued in this way. They can be both physical and virtual. If a company wants to raise its status and make its brand more recognizable, it can launch White Label card issuing. Business cards with an exclusive design look spectacular and, at the same time, have the same functionality as corporate cards with a traditional design.
