Small business owners juggle many balls in the air at one time trying to keep customers and clients satisfied while paying employees and making a profit. Small business owners almost need to be experts in business and finance in order to operate a successful business in today’s competitive market. Making decisions about how to utilize credit cards, business debit cards and business banking is one of the many financial decisions to consider for small business owners. Business debit cards are becoming a more popular tool; however, failing to take precautions will cost the owner more money in the end.
Business debit card providers are offering great benefits for owners who choose to utilize debit cards in their business. Fraud protection, waiver of annual fees, reward points and cash back are just a few of the benefits that small business owners can get from using debit cards. If you are considering a business debit card, shop around to find the best benefits for your company. Typically, the debit card will be tied to your business checking account; however, you may also be able to tie it to another account depending on the card provider.
The ease of debit cards makes them ideal for small business owners to use for every day purchases. Unlike credit cards, debit cards do not charge interest, rarely have a fee for the purchase and deduct the money from your bank account rather than incur debt. Furthermore, business owners can use debit cards to set up automatic payments for recurring bills to manage their accounts payable better. Furthermore, search for a debit card provider that offers the benefit of downloadable monthly statements and detailed reports to track business spending each month.
The ease of debit cards is also a reason why small business owners must take steps to protect their account. Because debit cards access the business checking account directly with purchases or by ATM withdrawals, the PIN access should be protected and not shared with employees. Furthermore, debit cards should not be in an unsecured location within the office. If business debit cards will be used by employees, search for a card provider that allows the account owner to limit the debit card amount. This allows the business owner to provide the debit card to employees to use for supplies, inventory and other business purchases while protecting their account from fraudulent and expensive charges.
A pre-paid debit card may be a better alternative for small business owners that desire to use the debit cards for employee purchases. By using reloadable, pre-paid debit cards, the business owner controls the maximum amount placed on the debit card while allowing employees to have the availability to purchase items for the business or pay business expenses when necessary. Pre-paid debit cards offer many of the same advantages of small business debit cards while limiting the risk.