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It’s not a decision you want to make hastily.
Key Point
- Employee debit cards relieve some of the responsibility of making purchasing decisions for your company.
- However, some employees may attempt to abuse their access to company funds.
- It is important to take safeguards to ensure that employee debit cards are only used for legitimate purposes.
Small business growth is exciting, but it can also bring new challenges you weren’t prepared for. For example, you can delegate certain purchasing tasks to your employees so they don’t have to do everything yourself. But to do this, you have to put a lot of trust in them and care about the company’s finances as much as you do.
If you’re considering a business debit card for your employees, keep these things in mind:
Pros and Cons of Providing Your Employees with Business Debit Cards
The benefits of giving employees access to company debit cards are obvious. They don’t have to ask for your approval every time they need to buy something to do their job.
However, some employees may abuse this power. They use debit cards to buy things they don’t really need for your business, or even buy things for themselves.
3 steps to take when giving employees access to company debit cards
You can avoid the downsides of giving your employees access to business debit cards by taking the following steps:
1. Give debit cards only to employees who actually need them
There is no reason to allow all employees access to debit cards. You should only give them to individuals who are involved in purchasing consumables for your company.
2. Set rules for how employee debit cards are used
Create clear guidelines for how employees can use their debit cards, including what they can buy with their debit cards, how much they can charge, and when they need your approval before making purchases To do. Share this with all employees with debit card access to get written confirmation of the rules.
3. Imposing restrictions on debit card usage
Some small business bank accounts may allow limits on how much an employee can charge a debit card. This acts as a financial failsafe. Even if an employee decides to ignore the debit card usage rules, the card cannot be overcharged each month.
You probably have a pretty good idea of whether or not certain employees at your company can use and trust employee debit cards. No harm. And if an employee is found to be infrequent or improperly using their debit card, they can always get it back later.
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