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A business prepaid card acts like a debit or credit card, money needs to be added to the card in advance to make purchases or withdrawals from an ATM. A prepaid card is useful for your business as a convenient way for you or your employees to spend money without going over budget. 

A prepaid card could be used for employee expenses when travelling to meetings or as a petty cash alternative for purchasing office supplies or stock. It could also be useful at a team social, as the card can be used to buy the first couple of rounds of refreshments or to pay for activities.

Plus, a prepaid card doesn't require a credit check - so the application process is more straightforward than a credit card. You can normally apply for a card online through the provider’s website or app.

Why would I get a business prepaid card?

Prepaid business cards can have a range of benefits for your business and make managing expenses easier. Here are a few reasons why:

Controlled spending

--As only the money loaded onto the card can be spent, using a business prepaid card makes it easier to limit and keep track of spending. Many also integrate with your accounting software.--

Earlier expenses

--You’ll be paying for expenses at the point you load funds onto the card rather than after money has been spent so you’ll know what your costs are sooner. There’s also no reimbursement admin.--

No checks

--You’re not borrowing money with a prepaid card so no credit checks are required when you apply. This makes it quicker and easier to get a business prepaid card than a business credit card.--

Lower charges

--Although a range of fees can apply to business prepaid cards, the cost is often lower than for business credit cards. Make sure you’re clear about what the fees are before you apply for one.--

More flexibility

--Using a business prepaid card instead of a company credit or debit card makes it easier to issue to a large number of employees and you can control and monitor their individual spending.--

Before you can start using your prepaid card for business, you’ll need to load funds onto the card so that it has a balance. This can usually be done easily online, either through the provider’s app or website.

Once the money's in the account, the card can then be used by yourself or your employees to make purchases. When the balance becomes low, you simply top it up with additional funds in the same way.

How to compare business prepaid cards

It’s important to compare prepaid cards to find the right one for your business. Here are some things to consider when you’re reviewing the cards available:

Decide on the features you need

Do your research and explore all the different prepaid cards in the market before making a final decision, as each card will offer different features. Evaluate your priorities and ensure that the card ticks all your boxes.

Look at the fees

Prepaid cards do come with some fees, so comparing costs will help you to find the cheapest deal. Fees might be involved when you withdraw cash, make purchases, order additional cards, make balance enquiries and use the card abroad.

Check eligibility requirements

Before making your final decision, make sure you read all the terms and conditions to find out whether your business is eligible for the card. Once you have this information you can then apply for a card that’s right for your business.

A business prepaid card can be used in any UK retailer that accepts debit or credit cards - so you should find it's accepted by most businesses.

A prepaid card can also be used abroad and some cards allow you to add euros or US dollars onto them in advance. This could save you money in foreign transaction fees in itself - and because you’ve preloaded your card with the correct currency, exchange rate fluctuations won’t affect the balance on your card. 

If you travel to several countries with different currencies, look for a card that lets you load multiple currencies onto it.

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About the author

Joe Phelan profileJoe Phelan
Joe joined the money.co.uk team in 2024, where he helps small business owners navigate the often confusing world of business finance. His role is to cut through the jargon and create clear, actionable content that empowers entrepreneurs to make confident financial decisions.