All you need to know about the business bank card

What is a business bank card?

A business bank card is a means of payment made available to company employees . They can use this card to pay their business expenses. Also known as a business card, it is ideal for anyone wishing to simplify their company's accounting management.

It should be noted that the use of a professional bank card is mandatory for all forms of company (SA, SARL, SAS, EURL, etc.) and optional for micro-businesses and sole proprietorships.

It is attached to the company's business account.

Types of corporate bank cards

There are 3 types of business bank card:

The debit card

This is the the most common type of business bank card in France . The debit card is attached to the company's current account.

A debit card operates in 3 different ways:

• Immediate debit your company account is debited as purchases are made with the card

• Deferred debit Transactions are accumulated and your account is debited at the end of each month or at another date agreed between your company and the bank.

• Systematic authorization Each time a payment is made, the bank is asked whether the account balance allows the transaction to take place, otherwise the payment will be refused.

The credit card

Unlike debit cards, a business credit card is not attached to the company's current account but a cash reserve. The bank advances a sum of money on the card, which your company must repay at a later date. credit revolving .

It allows you to make purchases and withdraw cash up to a certain limit. credit ceiling according to the bank's terms and conditions.

A credit card operates on a deferred debit basis The sum of the expenses is debited from the company's account at once. Repayment of the credit is usually made by direct debit from the current account at a date fixed in advance in the contract.

Prepaid cards

The prepaid card is a bank card that must must be supplied with funds in order to be usable . What differentiates it from a credit card is that the amount is paid before the card is used.

In this way, employees can only use the funds allocated to the card. So it's impossible to be out in the open because once the limit is reached, the card will be out of service. However, the card balance is renewed every month. It can be replenished according to users' actual needs.

This type of business card is used to control employee expenses and to avoid abuse .

The benefits of a corporate bank card

There are several advantages to using a professional bank card for your business. Here are the main ones:

Simplifying payments and expenses

One of the advantages of the corporate bank card is that it simplifies payments and expenses.

Instead of paying with your own personal card and then getting reimbursed, you and your employees can pay directly with your corporate bank card, all business expenses are automatically borne by your company and they'll be accounted for in a single account. You'll have greater control over your monthly expenses.

What's more, payment by credit card is a time saving During an assignment or business trip, an employee can book a flight and hotel room directly, or rent a car on his or her own, without the need for a manager to intervene, or to submit an expense claim afterwards.

Transaction monitoring and control

This payment method allows you to better manage your company's expenses .

A business bank card includes features that let you control your employees' expenses. For example, some business cards allow managers to limit the time the card can be used, to set a geographical limit, or to determine in advance the expenses authorized with the card.

What's more, for each business card, you can obtain a detailed statement of all transactions. This enables you to track all your employees' expenses and spot abuse more quickly.

Benefit from employee equipment insurance with the card

As bankcards are linked to a business account, this method of payment is generally the most popular. combined with insurance of all kinds .

For example, there's travel insurance, which covers professionals when they travel in France or abroad. This insurance includes

• Hospitalization

• Medical repatriation

• Civil liability

• Compensation for flight delays, cancellations, etc.

Equipment insurance covers repair or reimbursement in the event of loss of smartphones, laptops or other useful equipment.

Note that these advantages differ according to the bank cards and offers of the different banks.

Disadvantages

Although very useful, the use of a bank card can have its drawbacks for a company.

Fraud risks

Employees can use the business card for personal expenses . For the company, such a fraudulent act represents a loss of money not to mention inconsistency in accounting for expenses which would be frowned upon in the event of a tax audit, for example.

Comparison between a business bank card and expense reports

Visit expense reports, like business bank cards, can be used to pay employees' business expenses.

With an expense report, expenses are paid by the employee and reimbursed then by the company. With a bank card, on the other hand, charges are directly at the company's expense.

Technically, payment by credit card is less time-consuming than an expense claim For expense claims, you need to fill in an expense claim form and provide proof of expenditure, such as receipts. If you lose a receipt, the expense is non-refundable. In addition, repayment can take time because an expense claim has to pass through several departments before it can be validated and reimbursed.

What's more, the company's expense flows are centralized with the business credit card payment method, whereas they are dispersed with expense reports.

What expenses can be made with a business bank card?

Professional bank cards are intended exclusively for pay business expenses.

Professional expenses include

• Toll charges

• Meal expenses

• Travel expenses

• Accommodation costs

• Moving expenses if the reason for the move is professional

• Teleworking expenses

• Teleworking expenses

• Etc

How do you choose the best bank card for your business?

There are a number of business bank cards to choose from. Here are the criteria to consider when choosing the best offer for your company.

Price list

The granting of a business bank card generates bank charges, and each bank has its own rates. You should take a look at :

• Physical card issuance fees

• Foreign transaction fees

• Commissions for certain services, etc.

Services

You can also compare bank offers according to the services they provide, such as :

• Customer service available 24/7

• Insurance

• Loyalty programs

• Synchronization of accounts with the company's accounting system

Company needs

Your credit card must be tailored to your business .

To do this, you need to ask yourself a number of questions:

• Do your employees often travel abroad? If so, you'll need to choose a bank card that allows foreign currency transactions at affordable rates.

• How many employees will you give a business bank card to?

• Should I choose an immediate debit or deferred debit card?

• What types of expenditure can be made with the card?

• What budget should be allocated to each card?

• What features are needed to secure payments and manage expenses?

By evaluating the available offers according to these few criteria, you will be able to find the best option to facilitate your business activities .

How much does a business bank card cost?

The cost of a bank card can vary from bank to bank. In general, the cost of a bank card varies:

• Depending on the type of bank chosen : traditional or neobank

• Depending on the type of credit card : debit or credit card or prepaid card

• Depending on the associated features and their cost : foreign transactions, account management fees, card issuing fees, etc.

Overall, a basic card from a traditional bank will cost you approximately 80 euros per month On the other hand, a pro card including foreign payment and other features will cost you about 20 euros at a neobank.

Heropay: the bank card with the free pro account

Are you looking for a business bank card tailored to your company's needs?

Hero offers :

• Un free pro account with physical and digital bank cards and a deferred payment option

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In short, the professional card offers real advantages to a company and its employees: it allows a better control of expenses and employees avoid having to advance their professional expenses on their personal finances. free bank card with a free business account.