What are prepaid employee expense cards?
Prepaid employee expense cards are smart cards that companies give their employees for expense management. They are a great way for employers to facilitate credit for employees to manage their expenses during a business trip. They can be used for meals, lodgings, travel, and B2B transactions. Meanwhile, companies can retain control over employee expenses.
Improving employee expense management with prepaid cards
Companies need to cover employee expenses when they travel to meet clients, attend, or for other business purposes. Usually, employee expense management includes a reimbursement process where employees spend money from their pocket and then claim refunds against them. This process is challenging and is open to fraud. In order to avoid all these complications, companies can use prepaid employee expense cards.
Let’s see how prepaid cards streamline your employee expense management:
Convenience
Prepaid employee expense cards free you from the hassles and worries of managing employee spending. Instead of letting your cash flow delay reimbursements, a prepaid card ensures that you provide your employees with uninterrupted support by going cashless. If they do need cash for certain vendors, prepaid cards can be used to withdraw cash from ATMs.
Security
Using prepaid employee expense cards is the most secure option to make business transactions. Not only are they more secure as compared to cash, but they come with encryption features along with PIN protection. Since you can always recharge the card any number of times, you can only load with the amount you immediately need. This way, even if you lose your card, it won’t be as bad as losing a debit or credit card.
Spend limits
Most prepaid employee expense cards have a feature of fixing spending limits. Instead of handing over the expense control to your employees, you can preload the cards with approved budgeted amounts. This will ensure that the teams won’t overshoot budgets and your cash flow won’t be affected as you regulate the expenditure.
Complete visibility
Prepaid employee expense cards provide you with advanced expense tracking features so that you can keep an eye on your employee spends in real time. You get complete visibility into every single rupee spent across categories and vendors. Doing this will help you in estimating budgets in a more strategic way. You can reassign the allocations between categories with the new insights.
Fraud-free
Generally, expense management is infested by fraudulent claims and duplicate transactions. This not only upsets your financial health but also presents compliance issues during audits. Avoiding this becomes pretty easy with prepaid employee expense cards. Since reimbursements happen in real-time and spending is only done with enforced policies, the opportunity to commit fraud is almost none.
Hassle-free reloads
Prepaid employee expense cards can be reloaded multiple times. It provides flexibility for managing business transactions without worrying about outstanding balances on the card. When your employee runs out of balance, you can quickly load a fresh amount using multiple payment models like UPI, IMPS, and net banking.
Helpful nudges
Instead of allowing your employees to go on a spending frenzy, prepaid employee expense cards turn into a virtual financial assistant. The cards will trigger timely reminders and notifications to alert users about the spending limits, expense policies, and available funds in the card. These alerts will make employees more cautious about their transactions.
Do away with the hustle of employee expense management
Getting a prepaid employee expense card makes a lot of sense in streamlining your expense management. But instead of getting just about any card, choose XPNS by Zaggle. Why? Simply because it puts employers in front of the steering wheel so that they can run their business expense strategies the way they want. XPNS simplifies employee card management enabling seamless onboarding, card inventory management, setting spending limits, and getting a 360° view into their business expenses.
