There are lots of reasons why companies prefer to use prepaid cards over traditional credit / debit cards. Prepaid cards offer 100% control of funds available on a card, allowing companies to employ cards for contractors, vendor payments, and as incentive cards. Emburse offers clients all these benefits without locking up the capital typically necessary for prepaid cards.
Emburse creates cards with a “balance” that acts more like an “allowance.” Put another way, a card’s balance is simply how much it can spend, not how much funds are loaded onto that card; funds don’t leave your Emburse account until someone actually swipes a card.
Let’s use an example: Say you want to create 4 cards, each with a budget of $200/week and you expect each of these cards to spend around $50 a day. Unlike traditional card providers, Emburse does not “load” $200 onto each of your cards and hence does not require you have $800 prefunded into the account. If you know the expected spending is $50/day, you only need $200 in the account (4 x $50) before Emburse tops up the account at the end of the day.
This allowance method of card budgeting means that businesses do not have to tie up as much working capital for cards. If you’re interest to learn more, shoot us an email at email@example.com.