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What Are Business Debit Cards? How Are They Beneficial For Businesses?

Apr 15, 2021 - 12:52 PM Author - Alex


Being an international businessman, operating on a cash-only basis can be a little bit of an inconvenience for you. Plus, in addition to handling your regular business activities, there are many other areas that you have to take care of, for example, in-flow and out-flow of money including a budget, and managing cash flow, etc. Regardless of its business size, corporations always look for safe, faster, and reliable ways to pay invoices or make purchases instead of being kept on waiting for its approval process.

Here, having a business debit card is a boon for you. How? Let’s find out:

What Are Business Debit Cards?

Business debit card services help solve all these issues by providing a degree of flexibility to businesses. They are the cards with credit numbers that can be used by businesses in the same manner as normal credit cards are used. When you make purchases with the business debit cards, the amount is automatically debited from your account instead of being added to the credit line. These cards are specially designed to cater to the needs of businesses by helping them track and monitor business expenses for enabling greater control over expenses.

If you have a bank account, having a small business debit card can provide you a way simpler and convenient approach to pay for your everyday business purchase. Additionally, it can also reduce the amount of cash that you need to carry in hand.

Apart from these, having a business debit card has many other significant benefits. Let’s know

How Business Debit Cards Are Beneficial For Your Business?

Business debit cards can be used for every type of expense today and they are accepted almost everywhere in the world. If you are thinking of applying to a business debit card service provider,  here are the benefits of business debit cards that you should be aware of:

1. Sound Budget Track - The very first and foremost benefit of business debit cards is to help you maintain your budget. Unlike credit cards where you can borrow and lend money even when you might not have it, these debit cards are directly linked to your account. It means you are allowed to spend money that you have in your bank balance. To avoid lack of money while making necessary payments, it enables you to track your balance by providing you control over your spendings right from the beginning.

2. Ideal Choice For Business Purposes - You can apply for the business debit cards if you have one of the following EUR/USD business accounts such as a current account or private banking account to make your business expenses. These cards eliminate the need for traveler’s cheques and exchanging currency during overseas trips. You can make online payments, pay utility bills, and buy business essentials without any requirement of carrying cash.

3. Convenient & Secured - The Chip-card technology such as EMV has boosted a high degree of security in these business debit cards and made them less vulnerable to fraudulent activities through encrypted transactions. Plus, using them is quite convenient. Most merchants around the world accept them, so you don’t have to worry about a backup payment method. Just enter your Personal Identification Number (PIN) and money will be deducted from your account balance. 

4. Lower Fees & Interests - Lower fees and interests are some of those attractive benefits that make you go for business debit card services. You can withdraw cash from a networked ATM or an ATM at your bank with a business card and save money on these fees. How? Since you are not borrowing money from a card issuer, you may not have to pay interest charges. Plus, there are often no annual fees to use them.

5. Easy To Apply For - While applying for a business credit card, you may have to go through an extensive application process to get qualified. It usually includes a thorough credit check with your earning history. While in the case of a business debit card, many of the financial instrument providers or credit unions are offering debit cards with a business checking account even if they find your credit history questionable.

A business debit card addresses many issues being faced by businesses regarding high transaction costs as it enables employees to buy day-to-day items without experiencing a lengthy process.