Prepaid business cards: How they work and best options
- How prepaid business cards work
- Best business prepaid cards
- Benefits of prepaid business cards
- Disadvantages of prepaid business cards
- Alternatives to prepaid business cards
- Consider Ramp's corporate charge card for your business
A prepaid business card is a type of debit card that requires you to preload funds onto the card before you can use it for business purchases. The total amount you can spend is limited by how much money you have preloaded on the card. Once you've used up your balance, you'll have to load more funds onto the card to continue using it.
Let's look closer at prepaid business cards to see if they're right for your company.
How prepaid business cards work
A prepaid business card works just like a regular business credit or debit card. You can use them anywhere that accepts card transactions, including both physical stores and online retailers. Some prepaid cards also let you withdraw cash at ATMs.
Depending on the card issuer, you can fund your card through various methods, including bank transfer, direct deposit, or ACH. Some issuers offer employee cards that you can fund from your main account.
What is a prepaid business account?
A prepaid business account involves loading funds onto a card or account, which can then be used for business expenses. It operates similarly to a prepaid debit card, allowing businesses to spend only the amount that has been pre-deposited, and it's distinct from a traditional business bank account or credit line.
Best business prepaid cards
If you’re interested in using prepaid credit cards at your business, here are five options you can consider:
PEX Prepaid Expense Visa®
- Controls employee spending
- Real-time transaction tracking
- No credit check required
- Monthly fees apply
- Limited merchant acceptance
- No cash withdrawals
PEX has built its user base in the nonprofit and educational space, but they’re making inroads into the private sector with advanced technology and a modern user experience. They offer business pricing and reduced monthly and annual fees for nonprofits. PEX is unique in that there’s no limit to how much money you can preload into your account, although each card has a maximum limit.
- Features: Expense management, cardholder app, QuickBooks/data integration, API integrations, real-time reporting, live chat support, discounts for nonprofits
- Rewards: None
- Monthly fees for private sector businesses: $75–$200+ depending on the number of cards in use
- Monthly fees for nonprofits: $30–$80+ depending on the number of cards in use
- Maximum prepaid limit: $25,000 per card for private sector businesses; $5,000 per card for rewards and grants; no limit at the account level
Do prepaid visas work as credit cards?
No, prepaid Visa cards do not work as credit cards. They use funds you've already loaded onto the card, unlike credit cards which allow you to borrow money. Since they’re not a form of credit, prepaid cards won't build your business credit history.
dash™ Prepaid Mastercard®
- No monthly or per-card fees
- Unlimited number of cards
- Integration with accounting software
- Maximum card balance of $10,000
- No ATM cash withdrawals
- 3% fee on international transactions
A popular choice for small businesses, dash™ offers prepaid cards with an integrated app to track spending. It has no monthly fees, which makes it an attractive choice, but each card has a limit of $10,000, and you’re limited to a max of $100,000 in your main account. It’s also worth noting that you can’t use your dash™ card to withdraw cash or check your balance at an ATM.
- Features: Expense management, real-time reporting, live chat support
- Rewards: None
- Monthly fees: $0
- Maximum prepaid limit: $10,000 per card; $100,000 per account
Emburse Spend
- Easy virtual and physical card issuance
- Customizable spending controls
- Responsive customer support
- No ATM cash withdrawals
- Learning curve for new users
Emburse offers an expense management platform that integrates with their prepaid business cards. The platform lets you track spending, implement spend limits, and spin up an unlimited number of virtual cards for your employees. However, you can’t use Emburse cards at ATMs, and while the cards themselves are free, you’ll have to pay for a subscription to the Emburse Spend expense management platform. Emburse doesn’t publish pricing information.
- Features: Unlimited physical and virtual cards, expense management, real-time reporting, live support
- Rewards: 1% cashback on all purchases
- Monthly fees: No monthly fees for the cards themselves, but you’ll need to pay a subscription fee for Emburse’s SaaS platform
- Maximum prepaid limit: $100,000 at the account level, but you can request a higher limit, subject to approval
Bento for Business Card
- Customizable spending controls
- Real-time expense tracking
- Integration with accounting software
- No free option
- No international coverage
- Delayed customer support response times
Bento for Business allows businesses to set spending limits, track transactions in real time, and issue virtual cards for added flexibility. The platform integrates with accounting software like QuickBooks, helping to streamline expense reporting and reconciliation. By enabling direct business-funded purchases, Bento reduces the need for employee reimbursements while maintaining oversight through its centralized dashboard.
Note that this card is currently being relaunched by U.S. Bank.
- Features: Spend controls, unlimited physical and virtual cards
- Rewards: 1% cashback on all purchases
- Monthly fees: Starts at $29 per month for up to 10 cards
- Maximum prepaid limit: Maximum of $25,000 per transaction per day
Pleo Prepaid Business Card
- Automated expense tracking
- Integration with accounting software
- Customizable spending limits
- Monthly fees per user
- Foreign transaction fees
- Occasional app performance issues
While primarily available in Europe, Pleo is a popular choice for businesses looking for a streamlined approach to corporate spending. Transactions are automatically categorized and can be integrated with accounting software, reducing the need for manual expense reporting. Pleo also provides automated receipt capture and reimbursement tools, making it a convenient solution for managing company expenses.
- Features: Spend controls, automated expense tracking
- Rewards: Up to 0.75% cashback on all purchases
- Monthly fees: Free for up to three users
- Maximum prepaid limit: ~$21,000 (€20,000)
What’s the maximum limit for prepaid credit cards?
The maximum amount you can load onto a prepaid business credit card depends on the card you choose, but the amount can range from a few thousand to tens of thousands of dollars. Many prepaid business cards allow you to hold up to $100,000 in your account but set much lower limits at the card level.
Benefits of prepaid business cards
Prepaid business cards offer a range of benefits that can simplify expense management, improve cash flow, and enhance financial transparency. Here are some of the key advantages for your company:
Easily control employee spending
Managing expenses for projects or departments can be a balancing act. With a prepaid business card, you gain complete control over spending by setting clear limits for each employee or department. This is particularly useful when allocating budgets for long-term projects or ongoing campaigns and when managing cash flow for your marketing or sales teams.
You can tailor the card’s limits based on project phases or departmental needs, ensuring you stay within budget at every milestone. Additionally, many prepaid business cards allow you to issue virtual cards, which you can use for purchases such as software subscriptions or online tools, giving you an added layer of security and convenience.
No lengthy reimbursement process
Traditional expense reporting processes can be time-consuming and burdensome for both employees and finance teams. Employees often use personal cards to make business-related purchases, only to wait weeks or even months for reimbursement. This can be frustrating and inefficient for all involved.
With prepaid business cards, employees no longer have to use their personal cards for expenses or navigate the expense reimbursement process. Instead, expenses are pre-loaded onto the card, making it easier for employees to manage their purchases without waiting for approval or repayment. This way, employees can focus on their work rather than wrestling with financial admin.
Cleaner accounting records for tax filings
Organized records help you avoid unnecessary accounting and tax filing complications. Prepaid business cards automatically record each transaction in real time, categorizing by expense type. This makes tracking business expenses and spending patterns across different departments or projects much easier.
Automation reduces the risk of human error and helps make your financial records more accurate, which can help a lot with tax filings. Detailed, pre-categorized records can also save time and lower stress via transparent and readily accessible documentation.
Enhanced security and fraud prevention
One of the often-overlooked benefits of prepaid business cards is the added layer of security they offer. Prepaid cards can be easily frozen or replaced if lost or stolen. Unlike traditional business credit cards or debit cards, which might expose you to potential theft, prepaid cards are limited to their preloaded amount. This reduces the potential loss in case of unauthorized usage.
Also, you can issue virtual prepaid cards for one-time use, further limiting exposure and preventing recurring fraud from online transactions.
Simplified spending approval workflows
Managers can set customized spending thresholds on prepaid cards, so it’s easier to control expenses, and it simplifies approval for routine purchases. For example, if a department requires recurring purchases, you can set a limit on the card for routine expenses and require approval only for larger or non-standard purchases.
This eases the administrative burden on finance teams while keeping spending remains within the company's policies and budget constraints.
Disadvantages of prepaid business cards
Prepaid business cards also come with certain drawbacks. Here are some to keep in mind:
No business credit building
One major limitation of prepaid business cards is that they don’t help build your business’s credit history. Unlike traditional business credit cards, prepaid cards don’t involve borrowing against a credit limit or making repayments, two key activities reported to credit bureaus.
These activities build your business credit score over time. Without using credit and repaying it, your business won’t be able to establish or improve its credit profile, which could make it more difficult to secure loans or other financial products in the future.
Inflexible funding limits
Prepaid cards require you to load funds onto the card in advance, which means you need capital available upfront. While this can be beneficial for controlling spending, it also limits your flexibility. The credit limit on a traditional business credit card is often much higher, allowing for larger purchases or emergency expenses without the need for upfront funds.
Prepaid cards, on the other hand, are restricted by the amount you load onto them, which can tie up valuable funds. This can be a disadvantage when making larger, more immediate purchases.
No opportunity to earn rewards or cashback
Many business owners enjoy the benefits of cashback or rewards programs that come with traditional business credit cards. These allow you to earn money back or rewards points on every purchase, which can be reinvested into your business. However, most prepaid cards do not offer these types of perks.
Without rewards, you miss out on the potential benefits that come with traditional business credit cards. That makes prepaid cards less attractive if maxing out rewards is a priority for your business.
No access to a line of credit
Unlike secured business credit cards, which give you access to a line of credit while requiring a deposit, prepaid cards only allow you to spend the funds you’ve already loaded. Because of that, you don’t have the flexibility to carry a balance from month to month, and you won’t enjoy the purchasing power of a credit limit.
This can be a problem if you need to make purchases on credit and pay them off over time.
Alternatives to prepaid business cards
Prepaid cards can help manage your money or employee spending, especially if you’re just starting out. But over the long term, they might not be the best choice for your business.
Corporate cards
Instead of being preloaded, corporate cards allow you to make purchases and accrue a balance up to a flexible spending limit, which must be paid in full at the end of each billing cycle. Like prepaid cards, they don't accumulate any interest.
Corporate cards come with added features, like expense management tools and finer controls for employee spending. They also report to the business credit bureaus, helping you build your business credit score, and they often come with rewards like cashback.
Discover Ramp's corporate card for modern finance
Business debit cards
A business debit card links directly to your business savings or checking account. It offers another way to track and manage business expenses without the risk of debt or interest, without the chore of preloading cards weekly or monthly.
These are useful for businesses that prefer spending only existing funds, but, like prepaid cards, business debit cards don’t help build credit, and they don't offer rewards.
Can I run a prepaid card as credit?
No, you cannot run a prepaid card as credit. Prepaid cards are loaded with your own funds and function like debit cards, drawing from that pre-existing balance. They do not offer a line of credit or allow you to borrow money, which is the defining characteristic of a credit card.
Consider Ramp's corporate charge card for your business
Ramp is more than just a business card. It’s a complete expense management solution that saves businesses an average of 5% a year.
In addition to providing corporate cards for your organization, Ramp comes with spend tracking, bill pay, accounting automation, real-time expense reports, and seamless integrations with your existing accounting, security, and collaboration tools.
Ramp has no setup fees, transaction fees, or interest charges, and we don’t require a personal guarantee or credit check. Nix the complexity of expense reimbursement, streamline your cash flow management, and get the buying power your business needs with Ramp.
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