The biggest advantage of credit cards is convenience. In addition to the main credit card, to help with the smooth running of your business, many financial institutions offer additional cards that can be used by employees to make daily purchases such as office supplies or fuel. Business owners also have the option of having a Purchase Card or Charge Card, as an add-on, which you can pay for on an annual basis.
Another option is Virtual Pay Cards, which allow you to make online purchases without using your credit card. Other alternative ways to pay without using your card are phone apps like SnapScan or Masterpass, which is a feature that some credit cards offer. Most business credit cards charge no fees when you make point-of-sale purchases.
Safe online and in-store purchases
To prevent online fraud or card theft, credit cards are equipped with Chip & PIN technology and other online security features such as a messaging system that keeps you updated with any trading activity happening on your card.
Some business credit cards also come with 3D Secure verification for safe online shopping. This means that you will be asked to validate transactions made over the internet.
Track and manage spending limits
Many business credit cards now come with business reporting tools. These tools enable business owners to view statements and any account activity via the banking app and internet banking. With the reporting functionality you can also manage activities like your spending limits, as well as put spending limits on additional cards used by employees.
Easy access to cash
Some business credit cards offer a revolving credit facility which automatically allows you to borrow money repeatedly up to a set limit. You also have the option to apply in the bank to withdraw cash.
Free travel insurance & other rewards
Free travel insurance, as well as access to 24/7 global customer service are some of the additional benefits you can get with your business credit card along with rewards programmes. Get reward points for swiping with your card, making use of a bank’s digital platforms, buying fuel, or for buying at selected retailers. You can even get rewarded for making your monthly repayments on time.
Flexible repayment options
Depending on what the terms are, some of the ways to repay the money you owe on your business credit card include (1) pay a certain percentage per month over a particular period, (2) opt for the budget facility which means you can choose to pay back the money in three to 60 months, or (3) settle the balance within the grace period of interest-free days.
Most financial institutions offer a grace period where you can settle your account’s balance and no interest will be charged during this period. On average you can get between 35 to 55 interest-free days.
Free card protection
Many banks offer free lost card protection, which means that you get automatic protection against card fraud or misuse. Some may ask for an administration fee to get card protection. Generally, you get 24/7 customer service assistance in case you deal with card fraud.