Today we announced an adjustment to our Monthly Fee Per Card.  Previously, visitors to the pricing page on our website were asked to "Call for pricing."

This change was brought about in an effort to simplify the fee structure and - because the monthly fee per card is now lower than before - it will make our service more accessible for small businesses.  Since the beginning we have had flat fee pricing that business owners can budget for without the confusing and often surprising bills that can come about from transaction-based fee structures.  We are continuing that commitment!

We believe this will be well received, especially by our existing customers!

Happy New Year

Sometimes people ask if we offer "prepaid credit cards" or "secured credit cards."  The term prepaid credit card is a misnomer because credit card is by definition a loan accessed through a card service - its not prepaid.  To confuse matters a little more, people use the term credit card as a universal definition for cards, even if its a debit card, prepaid card or a credit card (see our post about terms for more info).

"Secured credit cards" are credit cards that require a security deposit prior to account activation.  You provide a security deposit and then borrow against it, while paying the bank fees and/or interest.  In essence, you are borrowing money from yourself.  Many secured credit card products are gone now, but if you can find one, the benefit is that the card issuer will help you establish credit history as long as you pay the bill on time.  The downfall is that if you need a $25,000 credit line, you have to place $25,000 on deposit, come up with more money to pay a bill at the end of every month after spending AND if you have employees to issue cards to - there are no controls available to limit how they spend through the credit line. 

Our service is a bit different from anything available for small and medium businesses.  You place funds on deposit (like a bank account) in advance of spending but you have direct access to and can use funds at any time.  In essence you are self crediting to keep yourself flexible and, you stay in control of how employees use company funds.

For more info, please click here.

With so many types of card services out there its easy to mix up terminology.  People call us asking about our business credit cards knowing full well that we don't issue credit cards or extend a line of credit to anyone.  The word "credit" has become so synonymous with "card" that people often just say that as a universal term.  Out in the field its really only clarified at the point of sale when the checkout person asks: "credit or debit?"

There are personal and small business credit cards, personal and business debit cards, corporate cards, and prepaid cards... so many names and so many types of services.  Each have at least two things common - there is a physical card linked to an account of some kind (credit or checking/savings) and most have a brand named payment network attached to them.

So what kind does the PEX Card Service use?


We use Visa prepaid debit cards as the access point to cash deposits companies create in our system.  There is no credit line or bank account attached to cards - just an electronic account to park funds until employees need to spend for expense items.

Labels: General Info

As we communicate with our clients, we learn more and more about how they integrate our business prepaid cards into their operational day to day.

Businesses are creating budgets for employees by funding their business prepaid cards daily, weekly or monthly.  Once spending has occurred the staff member has to submit a report with the corresponding receipts in order to have the card reloaded.  Cardholders have a website they can access for transaction detail, which can be printed and turned in.

Once approved, the employer can log in to the admin site to reload the card right away.

This system of checks and balances provides a simple method the employer can use to ensure that they get the information needed to keep their books straight, while providing the employee with a way of paying for the things they need to do their job.  Both employee and employer benefit overall by avoiding having to pay out of pocket and waiting for expense reimbursement.

Click here to learn more about the PEX Card Service! Post a comment and tell us what you think.

Labels: Case Studies, PEX Experiences, SMB Tips

This link offers some insightful tips about how small sized companies can save money while traveling.

One example in particular describes managing car rentals by reserving the smallest, cheapest car available - if they don't have it in stock, the rental agency generally honors the rate with the next best car in stock.

This tip resonates with me because I figured this one out on my own. In NYC the rental agencies move their cars to/from the airport to city locations. Business travelers coming in during the week rent cars at the airport locations, while New Yorkers need cars for weekend travel at city locations. Many times the inventory is a bit of a crap shoot. You can get lucky and get a bigger car for the lower rate.

Enjoy the article!

For more information about travel expense management - take a look at our other blog posts on the subject here! For more information about using the PEX Card Service to budget employee travel, have a look at our demo.

Labels: Budgeting, Travel Expenses

By using business prepaid cards, companies "self credit" with money they place on deposit. Doing so affords the ability to stay completely in control of corporate cards instead of being at the mercy of credit card issuers.

In uncertain times when business credit card limits are being lowered or accounts are being closed by credit card issuers, it is difficult to stay in control of the tools used to manage day to day operations. Sudden changes to credit card limits can bring business to a halt, especially for companies that are on the road or in the field.

When the credit line is maxed out, all cards stop working. No one can buy fuel or check into a hotel - and the only way the credit card company will allow spending is if all or part of the bill is paid. Even through electronic means, that can take a few days. For businesses with high spending volumes this can mean multiple funding transfers in a month. The biggest issue is not knowing the limits have been changed due to decisions made without input from your business.

Companies that begin using our service quickly realize that they have a greater amount of control over their spending, what their limits are and effectively - greater control over their business. Because they interact with our system frequently, they are aware of cash position, what cardholders are spending and when to make transfers to add more funds to their program.

We have heard from plenty of businesses that were in good standing, had strong business credit and were relying heavily on cards until their limits changed and people were stranded.

Sign up for PEX Card and take control of your cards, your limits and your spending!

Labels: Accounting, Business Process, PEX Experiences

In our second case study post we are going to discuss one organization's use of prepaid cards for business as a per diem tool.

Companies put people on the road for different reasons and in this case the we are talking about a school that sent teachers and staff to a conference. Each person was given a per diem of $54 per day.

The program administrator set the Scheduled Funding feature for each profile to automatically top up their business prepaid cards every day with the authorized amount. Doing so provided fresh balances to cards each day. If a cardholder spent only a portion of the funds, the program feature would replace only what was spent to bring the balance back to $54.

Also, the Merchant Category Spend Rule was turned on to keep compliant with IRS per diem rules and the school's expense policy. Only spending in restaurants with our business prepaid cards was allowed - our system blocks attempts to spend in unauthorized locations.

All in all, our service performs well as a per diem control tool and this is just another example of the versatility of our program.

Check out the program at: PEXCard.com

Labels: Accounting, Case Studies, Finance Tips, PEX Experiences

Every manager or business owner has their own style of managing cash flow and keeping employees on budget. Some prefer managing cash on a day to day basis, while others prefer a more hands off approach and to look at numbers monthly. Either way, reloadable prepaid cards for business make the cash management process for crews in the field much more efficient than petty cash or credit cards.

One customer in particular is the day to day sort of manager. He likes to fund his PEX Account with about $5,000 at a time, which is enough to fund his crews' needs for five to ten days. His guys move from one place to the next daily so they are always on the go. Anticipating that each crew will need an average of $500 per week, he budgets the accounts accordingly.

Certain cards have automatic card reload features activated, so that every morning cards are topped up with funds and are ready for use that day. If there is spending, our system tops the card back up to the amount pre-determined amount automatically during the night so its ready for another day out in the field. The owner doesn't have to worry about doing it because it is automated.

Every few days the owner reviews account balances and spending to make certain nobody is running low and to see where his guys have been spending the night, purchasing supplies, buying gas and eating food. All the information is available from one place online and it takes no time to review the account details.

Reloadable prepaid cards for business have made it simple for this particular company. We are happy he chose to use them for his business!

Check us out: PEXCard.com

Labels: Case Studies, PEX Experiences, SMB Tips

Companies that put their people in the field know all too well that dealing with expenses can be a hassle. For some, employees are asked to pay out of pocket and submit expense reports, for others you can issue cash or a corporate credit card. But in all these cases, the expense situation is still a drain on time and resources no matter what.

We are focusing on creating programs to ease the burdens of expense management for companies that put folks into the field, which is why we started the first reloadable prepaid debit card for business. The positive feedback we get from customers has been overwhelming and it is a great validation that the service is useful to people. We love hearing that.

The common feedback thread we get from companies is we are saving them time. Managing expenses through reloadable prepaid debit cards limits how much time they spend worrying about how to get money to people in the field who are traveling far from home. All they have to do is login, select the cardholder who needs money, add money through our QuickFund feature and log out. The operation takes less than :30.

Because all the transactions appear instantly, as they occur, the company can keep tabs on spending immediately. If they want to update their accounting software before the receipts come in, they can do that too. The process is handled more smoothly and an accurate cash position is always on hand.

Give it a try!

http://www.pexcard.com

Labels: SMB Tips