5 Reasons why you need a corporate prepaid card and how you can use it?

Corporate prepaid cards have transformed the way companies handle money, offering many a bridge to financial services. These safer credit card alternatives were born from a need to simplify transactions and banking. 

Let’s dig deep into what corporate prepaid cards are, how you can use them, and why they matter in our modern financial landscape. 

Prepaid Cards Definition

Prepayment cards allow controlled spending, as they are loaded with a set amount. Once you have loaded funds onto the card, it’s ready for use in purchasing goods or services. Each transaction depletes the balance, and you can reload the card as needed.

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Example of Corporate Prepaid Card: How Prepaid Cards Work?

Xpence, the region’s first smart business spending platform, is an excellent example of corporate prepaid cards. Designed for freelancers, corporates, and everyone in between, these cards give users flexibility in managing their payments and subscriptions.

It offers features like real-time approvals, global acceptance, and automated bookkeeping. Moreover, you can top up the card yourself by transferring money from your bank.

Whether issuing physical or virtual cards, Xpence empowers businesses with tools to launch and scale through their corporate prepaid card solutions. Its unique blend of control, convenience, and modern technology reflects the real-world applications of Prepayment cards, making it a standout choice for smart businesses.

What is a Corporate Card Used For?

Wondering how corporate prepaid visa cards work? From daily spending to specialized uses, prepayment cards help you eliminate various chores. You can use your corporate cards for: 

  • – Budgeting and expense tracking
  • – Travelling cashless across the globe
  • – Managing the office petty cash
  • – Paying for the office supplies & utilities
  • – Marketing & Advertising spend
  • – Paying for your tech stack subscriptions

Benefits of a Corporate Prepaid Card: Why You Should Have One?

A corporate card is a popular option for companies that may not be eligible for a credit card. You don’t need a strong credit history or provide any credit history to be eligible to use these cards.

Thus, these cards have become a preferred choice for companies who want to manage all their business expenses and petty cash processes. 

Say No to Overspending

Corporate prepaid cards safeguard against overspending, promoting responsible financial behaviour. With features like spending limits, controls, and approvals, employees have a clear limit that helps them control their budget. This makes it an excellent tool for empowering employees to be financially disciplined and ensuring that company expenses are controlled.

Accessibility

Xpence offers access to its corporate Visa cards to all company employees, which allows them to spend without going through the reimbursement process and without submitting expense reports. 

No More Missed Payments

Corporate prepaid cards allow users to load funds designated for business expenses and recurring payments. This ensures that essential payments are noticed, contributing to improved financial management.

Security

Corporate prepaid cards offer a layer of protection against potential risks. Unlike traditional credit cards linked to a bank account, these cards have a limited balance, reducing the potential impact of fraud or unauthorized transactions.

Furthermore, these cards are not directly linked to personal financial information, providing an additional buffer against cyber threats.

Hassle-free Transactions

Xpence Corporate prepaid cards streamline and secure transactions with their user-friendly features. With the rise of contactless technology, employees can swiftly make payments online without entering lengthy card details. Additionally, virtual corporate cards stored on smartphones eliminate the need for a physical card, contributing to eco-friendly practices and minimizing the risk of loss or theft.

How to Use a Corporate Prepaid Card?

Corporate prepaid cards are like your debit cards; you can swipe the card for payments, and if you have opted for a virtual prepaid card, you can simply tap your phone, and the payment will be done.

You can apply for a physical or virtual Xpence Corporate card by submitting the account opening form. Whether you’re using your Xpence card locally or worldwide, managing it is user-friendly. You can track expenses, add receipts and notes to transactions, and enjoy automated bookkeeping.

Xpence’s robust support system ensures a smooth experience if you encounter any issues and provides insights by giving card statements of your transaction history.

Prepaid Card vs Credit Card: What’s the Difference?

Feature

Prepaid CardCredit Card

Credit Limit

No credit limit – spend only what’s loaded

Credit limit set by the issuer

Interest RatesNo interest as no credit is extended

Interest charged on unpaid balances

Fees

This may include subscription fees

It may consist of annual expenses, late fees

Eligibility

Generally available without a credit check

Requires credit check and approval

Spending Control

Acts as a budgeting tool and controls spending

Risk of overspending beyond the credit limit

Security Features

Similar security features like PIN, chip

Similar security features like PIN, chip

UsageEveryday business expenses

Broad use, including borrowing

Conclusion

In conclusion, the benefits of corporate prepaid cards extend far beyond conventional payment methods. They empower employees with financial discipline, accessibility, security, and customization options that cater to modern businesses. Corporate cards are a flexible solution for daily expenses and long-term financial goals.

Check Corporate Virtual Card For Business Expenses solution

Manage Your Payments Effortlessly

With Xpence Visa virtual cards, you can start spending securely online smoothly and manage your bills efficiently. You can also apply for virtual cards that will generate a new unique virtual card number to reduce the risk of fraud. 

And guess what? You can add your Xpence card on Google Pay and keep your personal and business expenses separate through the same app.

You can also apply spending limits and controls to manage your business expenses. Get started and manage your business spending with ease.

Corporate Prepaid Cards FAQs

What is a Corporate Prepaid Card?

Corporate prepaid cards are loaded with money for purchases or cash withdrawals, providing an alternative to traditional credit or debit cards. They come in open-loop (usable anywhere) or closed-loop (restricted to certain categories) varieties and offer budgeting, expense tracking, accessibility, and security benefits.

Are corporate prepaid cards and debit cards identical?

No, prepaid cards and debit cards are not the same. Prepaid cards are preloaded with a specific amount, while debit cards are linked to a bank account.

How do you add money to the Xpence corporate card?

You can add money to your Xpence card by transferring funds from your bank account and setting up direct transfers from your business bank account.

Revenue Leakages in Companies: Common Causes and Preventive Measures

Watching your potential profits slip through the cracks? It’s time to plug the leaks and stop expense leakage in your company. Let’s explore the various causes of revenue leakage and learn practical strategies to prevent it from happening.

What is Revenue Leakage?

Revenue leakage is potential revenue loss due to inefficiencies or errors in a company’s sales or billing processes. Therefore, identifying and addressing revenue leakage is an important aspect of maintaining a healthy financial performance for a business.

Common Causes of Revenue Leakages

CausesExplanation
When a company does not collect all the revenue it is entitled toThis can happen for various reasons, including incorrect pricing, billing errors, overstating deductions, underreporting sales, or failing to enforce contracts properly.
Poorly managed billing processesIt can cause revenue leakage and manual errors like incorrect tax calculations or customer data.
Inaccurate pricingThis can also be a cause which happens when a company fails to review prices regularly or update prices to reflect market changes.
When customers don’t pay on time or in fullThis can happen when payment terms are not enforced, or customers can pay late without penalty.
Company fails to enforce its contracts and terms of serviceFor example, if a company does not follow up on the usage of services, it may leave money on the table.
Poor inventory tracking If a company does not track inventory and sales accurately, it can lead to inaccurate accounting and billing, resulting in lost revenue.

7 Ways to Prevent Revenue Leakages in Companies

Below are some necessary steps to prevent revenue leakage that can help ensure your business remains on the right track and maintains a steady revenue stream.

Leverage Automated Expense Management Tools

Automated expense management tools allow you to manage expenses automatically without much human effort. When you can control your employees’ spending through an app on your phone, it reduces the administrative burden and helps you spend more time streamlining your revenue.

Implement Internal Controls

Companies should implement internal controls to prevent revenue leakage. These controls should include segregation of duties, regular reviews of financial records, and properly documented procedures for all financial transactions.

Use Automated Bookkeeping Solutions

It is crucial to monitor all transactions and reconcile accounts regularly to record all income and expenses accurately. In addition, it is also important to ensure that all transactions are properly authorised and recorded in the books.

Manually entering all accounting entries could be a cumbersome task. Hence, using an automated bookkeeping solution could be at your rescue. It will help you auto-categorise your expenses and arrange them in order.

Utilise Audits & Internal Reviews

Auditing helps to ensure that a company’s revenue is accurate and properly accounted for, and internal reviews can help to identify areas where revenue may be leaking.

When conducting an audit or internal review, a company should look for discrepancies between actual and reported revenue. This includes looking for discrepancies between invoices, sales receipts, and other financial documents.

Additionally, they should look for discrepancies between the revenue reported to the company and the revenue reported to the government.

The company should also look for areas where revenue is being misallocated or misreported. This could include looking at the accounts receivable and accounts payable, inventory and purchasing, and cost of goods sold.

Also, reviewing any discounts or special pricing that may be offered to customers is important, as this can lead to revenue leakage.

Establish Proper Authorisation and Documentation

Establishing proper authorisation and documentation means setting up a system that requires approval from an authorised individual before any financial transaction is approved. This also involves having the proper documentation for all transactions, such as receipts, invoices, and other forms.

Track and Analyse Revenue Streams

The next crucial way is to identify and track your revenue streams. This includes tracking sales and revenue from all sources, such as online and offline purchases and subscriptions. You should also track data points such as customer information and payment methods.

Once you have tracked your revenue streams, it’s important to analyse the data to identify patterns or trends. This can help you identify areas where there may be potential for revenue leakage.

For example, notice that customers pay with a particular payment method more often than others. It may indicate that customers are not being redirected to the correct payment page or that there is an issue with the payment gateway.

Invest in Employee Training

Companies should invest in employee training to ensure everyone understands their roles and responsibilities to prevent revenue leakage. In addition, employees should be trained on the policies and procedures related to financial transactions and be made aware of the risks and consequences associated with revenue leakage.

The Bottomline

In a nutshell, revenue leakage can significantly drain a company’s bottom line. Remember, plugging the leaks is crucial to ensure that your company stays afloat and continues to thrive. With the right tools and strategies, you can prevent expense leakage and keep your company’s finances on track.