Corporate cards

How to use business debit cards effectively?

Apr 05, 2024

Business debit cards are becoming more and more popular, revolutionizing how companies handle their finances. These cards, which are directly connected to a business's bank account, offer a quick and secure replacement for conventional cost management methods.

By offering features like real-time transaction monitoring, scalable spending limits, and comprehensive cost reporting, business debit cards help businesses enhance their financial operations.

Additionally, they provide employees the ability to make necessary purchases while upholding strict spending controls.

What is a business debit card?

A financial tool created specifically for enterprises, a company debit card is a crucial part of their financial operations. These cards, often referred to as business debit cards, are linked to a firm's bank account, enabling simple transactions and cost management.

When using corporate debit cards, businesses make purchases, withdraw cash, and keep track of their expenditures. These cards offer attributes including configurable spending limits, real-time transaction tracking, and thorough cost reporting.

Debit cards for businesses, which are made to meet their unique needs, are becoming more and more well-liked as a secure and efficient method of managing money in the era of the Internet.

Benefits of using business debit cards

Business debit cards are becoming more and more common among companies because of all the advantages they offer. These cards give corporations convenience, control, and security while streamlining financial processes and expenditure management.

Streamline expense management

Using business debit cards will simplify the process of managing and classifying expenditures for businesses. These cards give businesses access to online banking and real-time transaction alerts, allowing them to stay on top of their financial activity.

By centralizing expenditure management with corporate debit cards, organizations may enhance financial control, boost budgeting accuracy, and make informed decisions for long-term growth.

Tracking business expenses

These cards provide companies with detailed transaction records, making it easy to monitor and manage expenditures. Having access to online banking systems and real-time transaction alerts allows organizations to stay informed about their financial activity conveniently.

The monitoring feature makes it easier to track expenditures, retain records, and produce accurate financial reporting.

Separating personal and business expenses

By using a dedicated business debit card, businesses can keep their personal and company accounts separate, preventing any cash mixing. For accurate bookkeeping, financial reporting, and tax preparation, this difference is crucial. Debit cards issued by the organization maintain an accurate and distinct record of business activities, making it simpler to control and classify expenditures.

Instant access to funds

Direct connections between business debit cards and a company's bank account provide for quick and simple access to available funds. By doing this, it is not necessary to spend time waiting for funds to transfer or writing cheques.

A business debit card enables businesses to carry out quick financial operations such as cash withdrawals from ATMs and quick purchases.

Avoiding interest charges

Business debit cards, as opposed to credit cards, let companies use their own funds to make purchases and conduct transactions. By using a corporate debit card, businesses may avoid borrowing money and paying interest fees, which are frequent with credit cards.

This decreases the overall cost of transactions and promotes financial discipline, both of which help the company save money. Eliminating interest expenses also improves financial stability and cash flow management.

Enhanced security

These cards have strong security features that protect businesses against fraud. Real-time transaction monitoring is typically a feature of business debit cards, enabling organizations to identify and report any suspicious conduct as soon as it takes place.

Additionally, many cards contain security features like PIN protection and two-factor authentication that add an extra layer of protection. In the case of theft or loss, businesses can quickly suspend or freeze a card to stop unauthorized transactions.

Purchase protection

Purchase protection features on many corporate debit cards safeguard transactions from certain risks. Extended warranties, theft or damage insurance, and even dispute resolution services may be part of this protection.

Businesses may rectify problems and seek compensation in the event of a faulty product or fraudulent transaction by using the purchase protection offered by their debit cards.

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How to use business debit cards effectively?


Establishing spending policies and controls

It is necessary to set spending plans and limits in order to utilize workplace debit cards effectively. Start by establishing clear boundaries on card use, such as permitted expenses and employee spending caps. Set up monitoring software to keep tabs on transactions in real-time and receive alerts for suspicious behavior.

To ensure accuracy, review, and reconciliation of statements should be done often. Use the expense management tools provided by the card issuer or connect to accounting software to make tracking easier.


Budgeting and expense tracking

When utilizing corporate debit cards, it's important to concentrate on planning and keeping track of expenditures. Make a reasonable budget for each category of expenditure first. Use the business debit card only for authorized business expenses. To keep track of expenses and identify areas for cost-cutting, regularly review transaction records.

Use online banking and real-time transaction monitoring features to keep tabs on your spending. Integrate your debit card with your accounting program to better manage your spending and provide accurate financial reports.


Reviewing statements and disputing errors

Pay close attention to transaction data and make a comparison to invoices or receipts. Contact the card issuer right once to report and dispute any irregularities or unauthorized transactions that are found. Making corrections as soon as you can ensures accurate financial records and avoids further financial losses.

When using debit cards for business transactions, it's important to frequently review statements and act quickly to dispute errors to protect the accuracy of company funds.


Regularly updating account information

Verify that the card issuer's contact details, including the business address, phone number, and email address, are accurate and current. This makes it possible to communicate easily about any notices, changes, or security measures pertaining to your account.

Keep the card issuer informed of any changes to approved cardholders or employee positions to ensure that access restrictions are effective.


Avoiding co-mingling of funds

Establish a firm line between personal and business finances. Keep personal expenses apart and only allow business-related purchases with the corporate debit card. Use of the company debit card for personal use should be avoided in order to maintain fiscal accountability and responsibility.

Regularly assess transactions and reconcile them with company records to ensure accurate financial monitoring.


Managing subscriptions properly

Any regular subscriptions connected to the company debit card should be kept track of. Regularly review and assess the necessity and value of each subscription. Delete any subscriptions that are no longer necessary or offer no benefit to the business.

To ensure accuracy and prevent any surprises, keep track of the billing cycles and payment amounts.

How to get a business debit card for your business?

Obtaining a business debit card involves several steps, from selecting a provider to completing the application process and receiving the card. Here is an guide on how to apply and geta business debit card:

1. Research and choose a provider

Begin by researching different financial institutions and card issuers that offer best business debit card in Australia. Compare their features, benefits, fees, and customer reviews to find a provider that aligns with your business needs.

2. Understand the requirements

Familiarize yourself with the specific requirements for obtaining a business debit card. Typically, you will need to provide business documentation, such as your business license, tax ID number, proof of address, and legal entity information.

3. Gather required documents

Collect all necessary documents to support your application. These may include your business registration documents, Articles of Incorporation, Employer Identification Number (EIN), and any other relevant paperwork requested by the card issuer.

4. Fill out the application

Visit the chosen provider's website or go to their branch to access the application form. Complete the application accurately, providing all required information about your business, including its name, address, contact details, and ownership details.

Be prepared to answer questions about your business's financial history and projected revenue.

5. Submit the application

Review the application form to ensure all fields are filled correctly and that you have attached any required supporting documents. Submit the completed application to the card issuer through their designated channel, which may include online submission or visiting a branch in person.

6. Wait for approval

After submitting the application, patiently wait for the card issuer to review and process your application. This may take a few business days to a couple of weeks, depending on the provider's internal processes.

7. Receive the card

If your application is approved, you will receive a notification from the card issuer. They will provide details on how to collect your business debit card, which may involve picking it up from a branch or having it mailed to your business address.

8. Activate and personalize the card

Once you have received the business debit card, follow the provided instructions to activate it. Typically, you will need to call a specific phone number or activate it through the card issuer's online portal.

You may also have the option to personalize the card by adding your business name or logo.

9. Familiarize yourself with card usage and features

Take the time to understand how to use a business debit card effectively. Familiarize yourself with features such as transaction monitoring, expense categorization, and any additional benefits offered by the card issuer.

Use Volopay cards for all your business needs

Looking for an easy-to-use and smart business card? We got you covered. Volopay is the ultimate expense management and business card solution. Volopay offers its customers both physical and virtual cards.

These cards can be used to make quick vendor payments, manage all business subscriptions, make low-cost international transactions, help employees purchase necessary supplies, assist with business travel expense convenience, track expenses, and much more.

All of this is possible with the amazing features inbuilt into the Volopay business cards and expense management system. These are:

• Direct accounting integration

• Real-time expense tracking and recording

• Unlimited virtual cards

• 3DS security protocol

• Two-factor authentication

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• Budget compliance

• Spend limits

• Fraud detection

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