If your business makes a lot of online payments, you may want to consider using a credit card for those payments. Although there are a lot of different online payment systems available, credit cards offer several advantages when compared with the current crop of online payment schemes. From the accounting and purchasing departments to any employees who need to pay for business expenses, online business credit cards makes transactions easier, more transparent and readily trackable. Here is a list of ten benefits of online business credit card use.
1. Ease Of Use
Using a business credit card to make online purchases makes it easy for a company and its employees to make purchases without having to leave the office. In an age when so many employees are already multi tasking, taking hours to drive across town to make a purchase doesn’t make sense anymore. An online business credit card purchase can be completed in a matter of minutes while allowing the supplier to deliver the goods.
2. Added Security
Online purchases made by credit card are much more secure than those made with debit cards or cash transfers. Credit card companies are backed by insurance teams whose sole job is to verify lost, stolen or damaged purchases and fraudulent transactions. If your online purchase doesn’t arrive or turns up damaged, a credit card company will work quickly to rectify the situation. The same may not be said for other methods of online payment. Similarly, credit card companies are typically much better equipped to deal with fraudulent purchases and compromised accounts than debit card providers or other online payment companies.
3. Automated Expense Tracking
Similar to regular purchases, online business credit card purchases will be automatically posted on the credit card account allowing expenses to be instantly monitored by the necessary departments. This reduces the reliance on submission of physical receipts which can easily be lost or forgotten. This is especially common with online purchasing situations where the receipt may not arrive immediately or needs to be printed by the purchaser. By paying for online expenses with a credit card, your accounting department will have instant access to records of purchases made as well as a monthly aggregate statement.
4. Lower Costs
Compared to a lot of online payment systems such as Paypal, using your credit card online is usually cheaper. Many online payments systems, including Paypal, add a transaction fee of a few percentage points on top of the original payment amount. This fee may be charged to both the buyer and the seller. When you use your credit card online, there are typically no extra charges for the buyer. Sellers will sometimes add a transaction fee to cover the cost of accepting a credit card payment, but regulators are starting to look at these charges with a critical eye. Many European countries no longer allow those who receive credit card payments to charge an extra transaction fee.
5. Better Exchange Rates
If you’re using your credit card to make a purchase in a foreign currency, you will likely be getting the best exchange rate available. Exchange rates used by credit card companies are typically in line with the going rate. Many other institutions that deal in foreign currencies such as banks, foreign exchange houses and online payment systems make extra profit by adding a few basis points to the going rate. Confirm any foreign exchange rates before making a purchase to ensure you’re getting the best possible deal.
There’s no doubt that using a credit card to make a payment online is one of the fastest ways to complete a transaction. Sellers receive payment almost instantaneously because the credit card companies have built in security functions which do not need to place a hold on funds. If you compare using a credit card for an online purchase against using a money transfer or wire service, the credit card offers a lot less resistance. Credit cards allow transactions to be completed in as little time as it take to type in your details.
It’s possible to use a credit card to make recurring payments for items such as subscriptions, regular bills and monthly dues. Because the card information only needs to be confirmed once, you can be sure you won’t forget to pay a bill once you’ve set up your payment. If you have a large number of monthly bills to pay, credit cards can be used to automate those payments and ensure you never miss a payment again.
8. No Attached Bank Account
Because credit cards aren’t attached to a bank account, you can rest assured that even if your credit card information is compromised, your bank account information will remain safe. When thieves compromise your credit card information, they will be accessing the credit card provider’s money, not yours. This is in contrast to when a debit card used online becomes compromised. The swindlers would have the ability to empty the attached bank account of all its cash. Credit cards remove this possibility.
9. Rewards Programs
Most credit cards who offer rewards programs allow points or rewards to be accumulated with online purchases as well. By using a credit card with an attached loyalty program for online purchases you’ll be able to maximize the rewards available to you. Whether it be cash back bonuses or a points based system, online purchases will add to your totals.
10. Use By Remote Employees
When credit cards are used online, the card holder does not necessarily need to be present to complete a transaction. Credit cards can be easily used by remote employees to take care of online charges without the need of the card holder to physically deliver the card. By simply transferring the card information to a remote employee, online payments can easily be made around the world.
The Emburse Solution
The Emburse expense management system now features online business credit card purchasing abilities. In a partnership with Comdata, an industry leader in issuing commercial credit cards, Emburse offers full credit facilities with a variety of settlement and invoicing options. If you’re looking to update the way your company oversees its business expenditures you need to get in touch with Emburse today for a free demonstration.