Marci and Marc are going on trips for their organization. One is traveling to a different city. The other is going to the store. Neither of them are in a position to pay the out-of-pocket money they are about to spend.
This is the classic use case for cash advances. However, cash advances come with complicated logistical, security, and reporting issues. That’s why many companies are replacing cash advance processes with prepaid cards.
A Simpler, More Straightforward Process
Today’s complex tax code and auditing requirements have turned cash advances into a complicated process.
Staff requests funds >
Management approves request >
Finance delivers cash or check to employee >
Employee spends money >
Employee files expense report and returns unused funds >
Management approves expense report >
Finance department records, allocates, and reconciles accounts >
Unused funds are deposited in the bank >
The Prepaid Card Process
Prepaid cards give you the same paper trail with a much simpler process.
Admin funds card and turns it on >
Employee reports and documents spending at the point of purchase >
System automates allocations and provides for one-click reconciliations >
Admin defunds card and turns it off >
PEX Visa® Prepaid Cards make staff spending easier to administer, monitor, and record.
Real-Time Policy Enforcement and Fraud Alerts
- Total spending limit
- Spending limit per transaction
- Spending limit per day, week, or month
- Specific days and times when money can be spent
- Merchant categories
Moreover, prepaid card software can give you real-time visibility into card usage. You know when, where, and how your employees spend. If a card is declined, you get an alert. In-app communications let you communicate with the cardholder to approve the purchase.
In addition to that, you benefit from the technological safeguards and fraud prevention that the bank issuer and Visa and MasterCard associations provide.
Automated reporting and reconciliation
The PEX website and mobile app maintain a record of each card’s funding. When employees use the cards, the system reports the transaction in real-time. Meanwhile, employees use a mobile app to submit receipts and accounting codes right from the point of purchase.
Allocations are automatic, and reconciliation becomes a simple 1-click process. PEX integrates with QuickBooks and other major accounting software programs. It all happens in real-time, so there’s no need for expense reports.
There’s also no need to recoup and deposit unused funds. When the employee no longer needs the card, you simply defund it and turn it off.
You can always show managers, boards of directors, stakeholders, auditors—any interested party—exactly how every nickel was spent. PEX offers a wide range of standard reports, plus the ability to customize your own.
Get money where it’s needed… instantly!
Someone’s at the store with $100, but the bill comes in at $122.37. Or another employee has a cash advance of $2,000 to cover a 3-day trip, but something comes up and they need to stay for an additional two days.
With PEX Visa Prepaid cards, the employee can request additional funds through a mobile app. The administrator receives an alert instantly and can fund the card in real time.
And if a card is lost or stolen, it’s easy to replace. No need to contact a bank. Simply log into your account, push a few keys, and the lost or stolen card is worthless. Then it’s just another step to fund or issue another card.
Made for the way you do business today
The mechanics and processes of cash advances are vestiges of a bygone era when spending was local and bookkeeping was simpler. That process simply can’t keep up with the way we do business today.
Today, your organization may need to enable spending in multiple offices or far-flung locations. Even overseas. With PEX Visa Prepaid cards, you can provide cash, monitor and record how it’s used, and recoup unspent funds—all from a website or mobile app anywhere in the world.
PEX Visa Prepaid cards give you a simple, elegant solution. Staff can use them all over the world. And they come with visibility, security, and auditability that cash advances can’t match.
See PEX in action
Let us show you how easy it is to get money where it’s needed, exercise unparalleled control over how the funds are used, and ensure your spending records are up-to-date and auditable.
Click here for a demo and see how PEX can work for you.
Stay up to date on the latest PEX news!
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank, N.A. (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).