Expense Management

3 Reasons Small Businesses Should Use Prepaid Instead of Business Credit Cards

February 5, 2019

Small business owners doing expense management

Business expenses range from business travel to conferences, classes or events, to office supplies, utilities, fuel and dining. Businesses may consider a business credit card as the best way to pay for these expenses. But, before sending in that credit card application, business owners and decision makers should consider these factors and other expense management alternatives.

  1. Don’t extend credit when you don’t have to. Business credit cards may require credit checks and many owners end up extending their personal credit to employees or contractors, potentially making the owners personally liable for the spending of their team members (and putting their finances and credit scores at risk). Interest rates are typically higher for most business credit cards1 than for prepaid options, and business owners may not qualify for an affordable credit card. Prepaid expense management cards can be used by almost any business with no credit check or credit score risk.
  2. There are better tools to track and control spending. Unlike other expense management options like petty cash, prepaid expense cards allow tracking so that employers can see every transaction. They also give employers the controls to add and remove funds from employee cards in just a few clicks and set spending limits.2 Business owners can also receive notifications via SMS or email, and spending data can be exported to accounting software.
  3. Businesses can earn rewards with prepaid. By using an expense management card like the Netspend® Expense Management Prepaid Mastercard®, businesses can be rewarded for spending with rebates from the Mastercard Easy Savings® Program. Businesses can earn rebates from a variety of fuel, hotel and restaurant networks at merchant partners in 40,000 locations within days using the mobile app.

Before businesses assume that credit cards are their best option, it’s beneficial to consider alternative tools like the Netspend® Expense Management Prepaid Mastercard.


1 Nerdwallet.com, “Small-Business Loan vs. Business Credit Card: How to Choose”  https://www.nerdwallet.com/blog/small-business/business-credit-card-small-business-loan/, October 2017

2 Terms and Conditions Apply. See Cardholder Agreement for details.

This Card Account may be used for business-related purchases and expenses only and may not be used to pay wages, commissions, incentives, or other employment related costs. Card Account may not be used for personal, family, or household purchases.

The Netspend Expense Management Prepaid Mastercard® is issued by MetaBank®, Member FDIC, pursuant to license by Mastercard International Incorporated. Netspend, a TSYS® Company, is a registered agent of MetaBank. Certain products and services may be licensed under U.S. Patent Nos. 6,000,608 and 6,189,787. Use of the Card Account is subject to funds availability and ID verification. Transaction fees, terms, and conditions apply to use and reloading of the Card Account. See the Card Account Agreement for details.