Businesses deal with a lot of vendors and suppliers. So, they should have a secure, effortless, and full-proof method of making the payment. All businesses regardless of their size should be able to pay invoices or to make purchases instantly and without having to wait for approval. A business debit card solves most of these issues and provides businesses with the benefits it needs.
Business debit cards are cards with credit card numbers. Employees can use the card in the same manner as to they would use a business credit card. To get these debit cards, businesses have to go through a bank account verification process. The favor for credit cards has been becoming low and debit cards are becoming more famous. Between 2012 to 2015, the use of debit cards grew at an annual rate of 7.1%. The value of payments made with debit cards grew from $2.1 trillion to $2.56 trillion during the same three-year period.
When you purchase goods and services with a business debit card. The same amount is debited directly from the account instead of opening up a new line of credit. A business debit card solves multiple issues that can make payments tough for small businesses.
How are Business Debit Cards Already Helping Businesses?
A business debit card is a solution for problems that businesses face regarding high transaction costs. Businesses that use traditional approval processes need people to submit requisitions for items that they need. Then the requisitions must be processed and approved, after that, a purchase order will be issued and then there will be an invoice. Based on the invoice, payment will be issued.
This process can be time-consuming, and the transaction fee is also high, regardless of the scale of purchase. A business debit card solves this problem. It allows employees to purchase everyday items without having to spend a fortune on transaction fees. Using business debit cards can help businesses to save money on their transaction costs.
Why Should You Consider Using a Business Debit Card?
A business debit card is essential for businesses as it offers better spending flexibility. A business owner can provide their employees with a business debit card. Using the cards they can purchase the necessary goods and services for the business without having to spend their own money and wait to get a reimbursement.
Business Debit Card vs Business Credit Card
While business credit cards offer their own fair share of benefits to businesses, business debit card solutions suggest that a business debit card may be a good choice. Business debit cards aren’t credit cards and won’t increase the business debt. They also don’t depend on your credit score or won’t affect your credit score.
Business debit cards are linked to the current account. Thus, all the purchases that your employees make are deducted from your balance. Some business debit card solves problems that other cards have by offering features that allow you to set spending limits and controls and prevent fraud. By contrast, employees may be able to use business credit cards to buy things that the owner hasn’t authorized.