Charlie and the Credit Factory - Prepaid Debit Cards

Prepaid Debit Cards

Wondering about debit cards? If you own a business and have people with expense accounts, there's now a way to limit what they spend--prepaid debit cards.

Using Prepaid Debt Cards

Switching to prepaid debit cards for your business has many benefits, including the following:

You no longer have to manage expense accounts and reimburse employees
Fewer checks will be written
It will be easier to monitor employee spending
YOU set the limits

Prepaid debit cards are accepted in most of the same places that accept credit cards and can be used for many of the same things that a company credit card can be used for, such as business travel, relocation expenses, entertainment, etc. It's also convenient for employees to use prepaid debit cards because they don't have to fill out expense reports and wait to be reimbursed. You also get a monthly statement you can use for tracking and filing taxes.

Not Just for Businesses

Prepaid debit cards are also a good tool for individuals who are trying to limit their spending. The difference between prepaid debit cards and regular debit cards is that aren't tied to your bank account. It's an entirely separate account, much like a prepaid credit card. Once you've used all the prepaid debit cards funds, you can reload the card, just like you can with a prepaid credit card. Prepaid debit cards don't require you to use a PIN number unless you're using it to get cash from an ATM. These kinds of prepaid cards are like a prepaid line of credit, so instead of borrowing money from a bank or credit card company, you're borrowing it from yourself because you've already funded it.

And that's the prepaid debit card facts. Learn more about debit credit cards on other pages of our site.