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Corporate card comparison - Which corporate card should you choose for your small business?

 Corporate card comparison - Which corporate card should you choose for your small business?
October 29, 2020
By Nick RobertsNick Roberts
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Search for ‘corporate cards’ on Google and you’ll find hundreds of different cards pop up. Business credit cards, corporate charge cards, expense cards, travel cards, prepaid cards, virtual cards - how do you tell the difference and decide which card is right for your company?

The good news is that once you break it down there are actually 3 major card types available - credit cards, debit cards and prepaid cards. In this blog post we’ll help you understand the pros and cons of each card.

Debit Cards

When a transaction is made with a debit card, funds are deducted from the available balance of the company bank account and paid to the merchant.

Pros

  • Cards draw from your company bank account at the time of transaction which means that money is available for other payments
  • Some debit cards have access to an overdraft facility

Cons

  • If a card is lost, or irresponsible spending occurs, all of the money in your company bank account is at risk
  • Financial checks and paperwork are required to qualify
  • No access to a line of credit

Best suited for:

Medium sized businesses that want a small number of staff members to have cards.