Find out all you need to know about a nominative corporate bank card

What is a nominative business bank card?

A business bank card is said to be nominative when it is allocated by name to a specific employee. In other words, the card is not interchangeable from one employee to another.

The card features are defined in accordance with the needs of the employee's position . This type of card differs from the classic business card.

However, its purpose is the same: to enable employees to cover their business expenses without having to commit their personal finances. It is therefore a means of payment allocated by the company to an employee.

Like the classic business bank card, it is directly linked to the company's current account. It can be used to pay for the employee's business purchases.

What's the difference between a traditional business bank card and a nominative card?

As you can see, the nominative bank card differs from the classic business card in more ways than one.

The classic business bank card:

Here are the specific features of a classic business bank card.

How it works

Depending on the type of bank card, debit or credit, the professional bank card works with payments debited directly from the company's business account.

In other words, the employee incurs business expenses and the company's current account is debited. This system thus differs from the principle of expense accounts, where the employee must first advance funds from his or her personal account and then request reimbursement.

This card is not nominative. Any employee in the company can use it. In the event of misuse, it is therefore difficult to determine who is at fault.

The benefits:

The classic business bank card offers a number of advantages:

• Ease of use . The use of a business bank card is preferred to the use of an expense account. The first reason often cited is ease of use.

It saves time for administrative departments and facilitates cash flow control. For their part, employees gain greater autonomy.

What's more, it requires no complex formalities to set up, as it is not personalized.

• No overdraft risk. The company can set limits and block/unblock cards. The company retains full control over the card.

• Track expenses on current account . As expenses are debited to the company's current account, you retain full visibility of the expenses incurred.

Disadvantages:

The classic bank card also has certain disadvantages:

• Less flexibility and control . As the card is not individualized or nominative, it is more difficult to effectively control spending. Although the cards are capped, this does not prevent fraudulent use by employees.

The latter can use the company card for personal purposes.

• More complex management in the event of loss, theft or expiry

• The inability to set individual expenditure ceilings . Not all employees eligible for a business card have the same financial needs. The ceilings are set on a global basis, and cannot therefore be customized to the needs of each function.

• Less suitable for companies with several employees who use cards. Control becomes even more complicated if the business card is intended to be used by a large number of employees.

Professional bank card :

The nominative card also has its advantages and disadvantages.

How it works :

The nominative professional bank card is therefore assigned individually and by name to an employee. This enables more effective control. The employee who holds the card may be less inclined to make personal purchases, as any misuse would quickly be detected.

The nominative bank card also greater customization . Each card is allocated to a specific employee and can be configured with spending limits, usage restrictions, etc:

• Opening hours

• Geographic zones

• Types of business

This also enables advanced tracking functions.

The benefits:

Here are the main advantages of the nominative business bank card:

• Better control of business expenses . Since the card is individualized, it's easier to keep track of the cardholder's business expenses.

• Detailed tracking of transactions by employee . The administrative department can carry out detailed employee-by-employee monitoring. It can do so from a single dashboard, and make comparisons using a high-performance tool.

• Easier expense management . It becomes easier to manage each employee's expenses.

• Limiting the risk of fraud . The employee holding the card is less likely to commit fraud.

• Possibility of delegating expenses to employees . It's easier to delegate expenses to employees, in the knowledge that they can't be abused or exceeded.

Disadvantages

Bank cards also have a number of disadvantages:

• Generally higher costs . The costs of a nominative bank card are higher than for conventional bank cards.

• More complex management for the company . If a large number of employees have a personal card, tracking can become even more complicated.

• Initial configuration required . As the card is individualized, it must be customized initially to match the needs and requirements of each station.

In a nutshell

The classic business bank card is more suitable for small businesses or one-off needs, with simplified management.

On the other hand, a nominative business bank card is recommended. for companies with several employees. It offers better control over expenses and more detailed management of business expenses.

The choice between a classic card and a nominative card depends on a number of factors:

• Your company's specific needs

• The number of employees

• The desired level of control

• The amount of the allocated budget.

It's important to compare offers from different banks and choose the card that best suits your needs.

Common uses of a corporate bank card

Here are the expenditure items that require the use of a nominative bank card:

Travel expenses

A nominative business card enables employees to be more autonomous in planning and paying for travel expenses. For example, he can :

• Book your plane tickets

• Pay car rentals and hotel expenses

• Paying tolls

• Etc

These formalities would take longer in the case of a debit card, for example.

Supplies purchases

Similarly, the employee can freely purchase the supplies needed for his work It's easy to use, without having to go through the administrative and accounting departments. All they have to do is respect their credit card limits.

It can be used to pay for office supplies, hardware or software.

Online payments

Company employees can use online payments to make purchases in the course of their work or as a means of payment. to pay subscriptions or suppliers for example.

A nominative bank card makes spending faster and easier.

In so doing, the company as a whole gains in efficiency and productivity. Employees are already limited by the defined ceilings, so it's hard for them to abuse the system. What's more, they can always be monitored in real time.

How do you choose the best personal bank card for your company?

As you can see, the personal bank card can be used to pay for all kinds of business expenses. It offers real practical advantages for both the employee and the company.

However, each bank has its own offer, and each bank card has its own characteristics. It is therefore important to choose according to the following criteria:

Price list

Pricing is a decisive factor when choosing a bank and then a bank card. The average cost of a business card varies from approximately 80 to 200 euros per year .

So you need to compare the different offers available on the market. It's not just a question of choosing the cheapest rate, but rather of the best value for money.

Some cards are expensive, but offer comprehensive additional services. If not, choose a less expensive card with more basic services. The most basic cards may even be free.

You also need include ancillary costs Some banks apply additional charges on specific transactions, such as cash withdrawals, or on the sale of goods. foreign currency transactions for example. Remember to have complete visibility of card costs to avoid any nasty surprises.

Services

Each bank offers a different package. Premium cards offer insurance services or cashback programs . Naturally, they cost more.

When it comes to features, opt for a card that lets you set flexible, customizable spending limits. This will enable you to control your budget more effectively, and better manage the risk of misuse.

Real-time tracking can also be important.

Company needs

Before choosing your corporate card, you should first of all analyze your company's specific needs . You may be wondering why you need a nominative business bank card?

• How many employees need them?

• What are the most common types of expenditure in your company?

• How often do employees travel?

• Do you need just one name card or more?

• Etc.

Some cards are restrictive, forbidding cash withdrawals or limiting the types of expenditure possible, while others offer greater flexibility and a higher level of personalization. Some offers also restrict card use to certain geographical areas or time slots.

There is therefore a plethora of products on offer, and it is important to choose according to your organization's needs.

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In a nutshell, a personal bank card offers real advantages for companies with many employees. The key, however, is to choose a card offering the right services for your company's needs, at the best price. Heropay offers a range of cards to suit all needs and budgets.