Top 5 Debit Cards for Startups
A business debit card is not the same as a regular debit card. A regular debit card is for your savings and current. In contrast, a business debit card is issued by banks or financial institutions that allow owners to load a specific amount into that card for business use. A business debit card is used by business owners for multiple purposes, viz., to control employee spending, reduce financial risks, and skip tedious business credit applications.
The Benefits of using a Business Debit Card
- It’s convenient.
Today most merchants accept debit cards as a way of payment, so you don’t have to worry about having a backup for how to pay for goods and services availed by you. Using a business debit card is very simple as a regular debit card. All you have to do is swipe your card and enter your PIN. The process is the same as the regular one, and the money gets deducted after entering the PIN. Cards are cheaper and are easy to use rather than cheques. They are not only helpful for everyday expenses, but also can also be used remotely through the phone.
- Ability to monitor expenditure.
You can specify and decide which employee will receive cards and set different credit limits for each card. Card issuers levy some charges on withdrawals, which will in turn help to check out the expenditure.
- Easy to qualify.
Newly formed startups and small businesses might get fewer chances to get qualified for business credit cards. However, you can be allowed for business debit cards by opening a savings or business checking account.
- Near to zero interest and fewer fees.
The reason you can’t run up debt with a business debit card is that you don’t have to pay any extra interest charges. This could, in turn, save a good amount of bucks. For the fact, some banks even pay you interest for holding your money within their banks.
How to choose the best debit card for your business.
In order to find the best business debit cards, there are some specific factors that you need to take into consideration:
- Account fees: Some cards require pricey monthly plans on opening an account. On the contrary, some may not charge a single penny.
- Card fees: There are some card fees levied by lenders like ATM fees, reload fees, domestic and foreign transaction fees, and so on.
- Reloads: Some cards may give you the convenience to replenish the money into account through easy ways like through mobile, and some cards may not provide you with this benefit, in which you require ACH transfers or have to go in-person to reload the money into the card.
- The number of users: You may select the appropriate card depending on the number of users or employees you have. Some lenders can issue a multiple number of cards, while some may limit the number of users you can have.
- Tools: There are numerous tools made available in some cards, which let the managers control each card by customizing controls.
- Reporting: Depending on the cards, you may receive alerts and notifications about the transactions.
- Rewards and benefits: Some cards, as mentioned above, offer you the interest for holding the money within their banks, and at the same time provides some bonuses and benefits. For example, Walmart MoneyCard, NetSpend.
Top 5 Debit Cards for Startups:
1. Bento for Business Visa Card
(Best for Multiple users).
This card is the most useful and best card among small business owners. Bento allows a lot of runway and road if your business is evolving, a startup, or in early growth stages. You will be charged a flat fee per account rather than per card. That means, the more the number of debit cards attached to an account, the lower the price per card.
The business owner has to pay the following rates for their debit card:
$29 a month for up to 10 attached cards.
$69 a month for up to 25 attached cards.
$149 a month for up to 100 attached cards.
Bento will waive these fees if the business spends more than $40,000 a month on your business debit cards.
Bento will also allow data export and integration into accounting software like QuickBooks, which will, in turn, help business owners get a good hold on spending as small business owners, startups, etc.
2. Dash Prepaid Mastercard
(Best for companies using contractors).
Dash Prepaid Mastercard is another free business debit card. In the Dash debit card, you will add funds to your associated account via bank transfer into the company vault, and from there, Dash will allow you to disburse the money in the account of employees as necessary, allowing them to use their cards for every business expense.
The most vital feature of Dash is its sturdy mobile app. Through this app, employees can request funds into their card, mentioning the amount and description of how much and why they want it. You will then get to accept or reject their request for funds; if it gets approved, money will get transferred into the employee’s card. You can also freeze or suspend the cards remotely; this works when you are working with contractors or gig workers, where you are not entirely sure how long your association will last with them.
You can maximum have $100,000 in your account in one calendar month and a maximum of $10,000 when transferring from the vault into employee cards.
3. NetSpend Small Business Prepaid Mastercard
(Best if you need ATM access.)
NetSpend Small Business Prepaid Mastercard is excellent for those who want more options in their corporate card and for those who are still growing, a startup, or looking to expand their team. You can put $25,000 per day in your account, and employees can spend up to $5000 daily for office expenses.
You can load funds into this card through ACH transfer, direct deposit, or through physical reload. All of these methods take around 2-3 days to complete. The other way to load funds into the card is through a mobile app, where you or your employees can load funds, and the money could be available within some minutes.
You can create up to 10 sub-accounts. You can track these accounts through a mobile app and even download the transactions history to QuickBooks in a matter of seconds.
Looking for the fees, you have to pay $9.95 per month and an additional $1.95 per month for every sub-account.
4. Brink’s Business Expense Card
(You can get the First two cards for Free.)
Brink’s Business Expense Card could be a great option for those who want to try using business debit cards and get an idea of the same, as they give you the first two cards for free, one which is the owner card and the other is the team card. This card also integrates with accounting softwares like QuickBook and others.
For team cards, $29 for up to 10 cards
For professional cards, $69 for up to 25 cards
For enterprise cards, $149 for unlimited cards.
There are no setup fees, no debit fees, no card load fees, no domestic or international fees, or decline or overdraft fees.
Loading funds into the card is easy as once the bank account is linked to the card, you can transfer funds to the account online, which will be available to you within two business days. There are no limits on how many deposits one can make, and one can purchase things up to $25,000 per day and for ATM withdrawals, $500 per day.
5. PEX Prepaid Visa Card
PEX Prepaid Visa card comes with easy and modern solutions for things like spending with its mobile application, in which users have complete control over their expenses. It also provides spending information. Managers and business owners can create smooth expenditure for the company by controlling staff spending, reconciling books through automatic functions, and also customizing card programs.
With no limit to several transactions, you can load up to $25,000 per day with no lower limit.
This card can be integrated with accounting software like QuickBooks, Aplos, Procore, Certify, etc.
The pricing structure is as follows: –
- For Business pricing:
Core- $75 per month.
Pro- $200 per month.
Infinite- $300 per month.
- For Non-profit pricing:
Core- $30 per month.
Pro- $80 per month.
Infinite- Custom quote.
If you want to give your employees spending privileges and at the same time keep a check on their spending habits, then a business debit card is one of the best options to rely upon. These cards help in preventing a lot of expenditure. As seen above, many cards also have extra tools which help in integrating your accounts and also alerts for the whereabouts of your money.
From options available in the market for business debit cards, the best will depend upon the nature of the business and the specific needs one has. One should look out for factors like pricing, tools available, and accounting integration.
Edited by Prakriti Arora