Prepaid Cards – A Strong Expense Management Instrument For Companies

It’s fast gaining traction despite the fact that the prepaid cards market in India is now small compared to credit and debit cards. According to a report by Giesecke and Devrient, there are now 17 million users in India as against 316 million in other sectors like banking. Corporate customers that are searching for streamlined and simple methods for financing and handling business expenses are driving the upsurge in use of prepaid card program. Companies favor simply because they can better control the resources they allocate to workers paying through prepaid cards. The move is being welcomed by workers also, of managing cards rather than cash or checks due to advantage. Unsurprisingly, the Indian prepaid card market is anticipated to develop at a CAGR of around 40% till 2017.
How Can Cards Work
A card is pre-loaded using an absolute quantity of money and after that used to produce purchases. Prepaid cards may be used at POS, ecommerce retailers along with for ATM withdrawals.
One of the key features of the mechanism is the likelihood of abuse or fraud is limited as compared to a bank debit or credit cards, which are mainly linked to your bank account. Expense management cards will not be linked to a bank account as well as the amounts of purchases that may be made is limited to the sum of funds loaded on the card.
Given the increased control that prepaid card program offer over business spending and also the security, more companies are now switching to these for business expenses that are managing.
Corporate prepaid cards age with excellent features such as real time trade tracking and spend limitations. As an example, in the event a delivery company runs, there is likely no reason for your motorists to be purchasing services or goods.

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