Running a successful business requires using a variety of tools to ensure efficiency, productivity and transparency. When used strategically, a business debit card can be a powerful tool—for both employers and employees.
While a business debit card provides you with the ability to make purchases in a timely manner, other benefits include:
- Saving on transaction fees. Debit cards typically have lower processing fees than those associated with writing checks or using a credit card.
- Setting up automatic bill pay. You can focus on building your business knowing that recurring monthly expenses, such as rental fees, are being paid on time.
- Authorizing purchases. Give employees the ability to buy office supplies without having to request petty cash.
- Making deposits and withdrawals easily. Stop by your branch ATM at your convenience instead of worrying about banking during normal business hours.
- Managing spending. You can establish dollar limits on employee debit cards and predetermine where the cards can be used.
- Paying for travel and entertainment expenses. Employees can bypass the need to submit reimbursement requests, which gives you more time to run your business.
- Monitoring your account online. Keep an eye on the bottom line by tracking spending and watching for fraudulent activity on the checking account.
- Applying is simple. Typically, you can apply for a small business debit card when you open a business account.
Because debit cards are linked to your company's checking account, it's smart to avoid using them at gas stations, hotels and rental car agencies. Use a business credit card instead. This approach helps sidestep the possibility of having a hold placed on the business checking account, which could cause checks to bounce. Take advantage of extended warranties and other purchase protections by charging large purchases, such as office equipment, to your business credit card.
Learn how California Bank & Trust business debit and credit cards can work for your business to earn rewards, save on purchases and get discounts.[cite::171::cite] [cite::172::cite]