Business prepaid cards offer businesses the chance to allow their employees to spend in a finely controlled manner. Business owners can take a card out from a drawer, activate it with a specific budget and merchant restrictions, and assign it to an employee / contractor temporarily as-needed or on an on-going basis. These cards are great for standard travel and entertainment “T&E” expenses as well as for general office expenses and subscription services.
Why prepaid rather than full credit cards? Not every employee needs to have access to a card with a $20K line of credit. For example, sometimes an employee just needs to do 2-3 transactions to book a fight and hotel for a conference. Rather than use his own card and then go through the hassle of reimbursement, prepaid cards allow him to easily transact with minimal backend accounting and reconciliation work.
Prepaid with Emburse is unlike traditional prepaid cards in that there is no need to load funds onto a card. Funds only need to be available when someone actually swipes a card or checkouts online rather than when the card is first created / budgeted. Let’s use an example: Say you want to create 4 cards, each with a budget of $200/week, but you only expect each of these cards to spend around $100 a day. Unlike traditional card providers, Emburse does not “load” $200 onto each of your cards and hence does not require you have $800 prefunded into the account. You only need $400 in your Emburse account (4 cards x $100 per card).
If your expenses are highly variable, we suggest that you 1) increase your Emburse account’s minimum balance to have a higher cushion or 2) set an automated trigger to bring you back up to the minimum balance as many times as necessary before our typical 5pm PT top up.