How to Use Debit Cards for Your Business Expenses

A business debit card offers flexibility to business by allowing the company. Safer than cash and easier to use than business checks, a company debit card can provide you with dependability and protect you from fraud. It is becoming increasingly difficult for a business to use checks and company cards offer a safer alternative to cash.

Pre-set Spending Limits

You can order multiple debit cards that are attached to your business checking account for an employee to use. This will help the employee by keeping track of his spending. He will no longer have to keep track of signed checks, cash or receipts. A pre-set spending limit protects the business from over-spending and you ill have an electronic record of all expenditures without waiting for an expense record from your employee.

Business and finance

Each employee's debit card has a different number and personal identification number for its use. If employee A needs to fill up company gas tanks on a regular basis, then his limit can be set higher than employee B who only needs to purchase a few office supplies here and there. By each employee having their own card and their own pre-set limit, the business does not have to worry about overspending and the finance department can easily track the business's books and records.

Company card can speed up your business

If you need to order materials or special parts, a company card can provide you with immediate shipments. You will not have to wait for a check to be received through the mail and for the check to clear the bank before your materials are shipped. This can save you several crucial days between ordering and receiving your materials.

Fraud protection

A bonus feature with using debit cards is the business is protected from fraud. If a card is lost, stolen, or misused, the business has recourse to reverse the transaction. This also provides the business with physical proof in case of employee misuse that can protect the business in a court of law if necessary.

Select Employees Who Will Use the Company Card

Select your employees who will use a company card. In a small company of twenty employees or less, you may consider the office manager who orders supplies to be an authorized user. You may also want to consider issuing a debit card to the supervisor of a road crew to use for hotels, food and gas while on the road. There may be other key employees who will benefit by having a debit card within your organization. If any employee has cash expenditures, they are good candidates for issuing debit cards with preset spending limits.

Mastercard: Debit Business Card