4 steps to choosing a business bank card for optimum expense management!

Corporate bankcards are used by many companies to better manage their expenses and those of their employees. Beyond their function as a means of payment, corporate cards have become an essential tool in expense management.

They make it considerably easier to monitor and control company expenses, and provide greater security for the payment process. Your employees are more autonomous, and your financial management more optimal.

However, there are several types of card with different features. So which one is right for your company? And what criteria should you use to make the right choice?

In this article, we'll give you all the information you need to make the right choice, so you can opt for the means of payment best suited to your needs and those of your employees.

See all software Expense Management

What is a business bank card?

A professional bank card, also known as a company card, is a means of payment that a company provides to its employees to pay for business expenses. It is directly linked to the company's bank account .

👉 From a legal point of view, the vast majority of companies are required to open a business bank account. This is where they register their capital on registration. However, there are exceptions:

• sole proprietorships
• liberal professions

What are the different types of business bank card?

Corporate card

This card, also known as the "employee" debit card or business card, is specially designed for large international companies where employees regularly incur expenses linked to business travel.

👉 Expenses are therefore in foreign currency, forcing employees to have a card adapted to international use. It limits the financial pressure on employees and centralizes your expenses for easy tracking.

The virtual card

Also known as an e-card, the virtual card is a dematerialized means of payment that enables you to pay your business expenses online, thus limiting the risk of fraud. They have the same characteristics as a physical bank card, namely :

• bank card number,
• expiry date
• CVV code

The Business card

Otherwise known as the "company" debit card, this card is designed for small and medium-sized businesses. The company's account is debited directly, and this type of card is often reserved for company executives. However, it can also be allocated to specific departments, such as :

• purchasing department
• the finance department
• payment departments (for travel bookings, for example).

The "lodged" card

This type of card is designed to pay employees' business travel expenses via a payment account registered directly in the information system of the service provider concerned.

👉 It is one of the main centralized payment methods on the market. It enables all transactions relating to employees' business travel to be settled and managed in real time from a single location.

The purchasing card

The purchasing card enables employees authorized by the company to pay for goods, services and other operating expenses from pre-selected suppliers.

What are the advantages of a professional bank card?

Considerable time savings

Managing expense accounts is often a time-consuming and repetitive task that takes up the time of specialized departments. With a business bank card, all your employees' business expenses are centralized in a single business account.

Each business card holder has access to a mobile expense management application . This makes things easier for :

• Employees, who no longer need to spend hours creating expense reports in Excel. All expense receipts and invoices are recorded on the platform.
• Managers, as the platform automatically manages detailed expense reports and archives receipts in digital format.

Secure business expenses

The professional bank card provides you with enhanced security by enabling you to keep control of your expenses, which considerably limits any attempt at fraud.

All your sensitive information is protected by a secure digital platform. Your data can be encrypted for even greater security.

What's more, in the event of loss or theft, the card can be blocked at the click of a button .

👉 We therefore advise you to distribute prepaid cards to your employees, so as not to affect the whole workforce in the event of loss or theft.

Avoid personal expenses

Thanks to their professional bank card, your employees no longer have to use their personal bank account to finance expenses linked to their professional missions. Indeed, the classic model for managing business expenses could be described as follows:

1. employees advance the costs of their business trips and missions,
2. they then create expense reports accompanied by payment receipts,
3. they expect to be reimbursed within several days or even weeks.

This method, although effective in the past, is no longer the case today. With the digitalization of companies, time-consuming and repetitive tasks are avoided or even eliminated, and expense management is optimized.

With a business bank card, you can pay your employees specific amounts, based on your budget forecasts.

👉 This avoids the inconvenience of employees who may not have enough personal funds to meet their business needs.

Last but not least, business bank cards can be of great benefit to you when traveling abroad on business , where expenses are often high and in foreign currencies.

Better monitoring of business expenses

All business card transactions are recorded and forwarded directly to the relevant departments via a digital platform.

👉 This considerably optimizes the monitoring and control of expenses.

This optimization can be further enhanced if your bank card is connected to an expense management solution to automate all your reporting and tracking.

See all software Expense Management

How to choose your business bank card

1 - Assess your company's precise needs

The decision to opt for a business bank card is based on an identified need. This need may differ from company to company. Your priorities and expectations are different, which may lead you to opt for different types of card. To best meet your need(s), you need to ask yourself the following questions:

• What problem am I trying to solve by introducing a new payment method?
• How many employees will be using these cards?
• What types of expenses will be paid via these cards?
• Do my employees travel abroad on business? (In this case, an international or foreign currency card is preferable).
• What is the budget for each card? (Depending on your budget forecasts)

2 - Compare market offers

Depending on your needs, there are several offers available. These may be banks, online payment solutions or even neo-banks that give you access to a multitude of offers accompanied by numerous advantages:

• travel insurance,
• loyalty programs,
• personalized follow-up,
• encrypted data,
• 24-hour assistance...

It's up to you to decide, according to your priorities and budget, which services would be most beneficial to you. Don't be in a hurry! It's important to take a close look at all the offers so you can offer your employees the optimum payment card.

👉 Pay attention to the fees charged by these providers, such as :

• foreign transaction fees,
• card creation fees,
• commissions charged for certain services...

3 - Differentiate between immediate and deferred debit cards

There are two payment terms for bank cards:

• Immediate debit cards: these automatically debit the company's business bank account on the day of payment, with a two-day margin. You are notified in real time.
• Deferred debit cards : these debit all your expenses at the end of the month.

The choice between these two types of payment card is essential. It will be made according to your budget planning as well as the different types of expenses you incur.

💡 In general, immediate debit cards are less expensive than deferred debit cards.

4 - Turn to digital tools

Businesses are becoming increasingly digitalized and entering the digital age. A digital offer will meet all your needs while making your day-to-day life easier. Intuitive expense management solutions offer several advantages:

• dematerialize expense reports,
• automate expense management processes,
• reduce the number of steps required of employees,
• control your employees' expenses,
• automatic export of expense reports.

Online software solutions for corporate cards are also highly relevant, giving you a 360° view of all your expenses to better optimize your budget planning.

These new intuitive, ultra-customizable solutions are a real performance booster for companies, as they automate time-consuming tasks, leaving them more time to concentrate on their core business.