What You Need to Know About Prepaid & Fraud

While the consumer prepaid card market is wrought with scams, the prepaid space for business is a great solution for preventing fraud.

Prepaid for business works differently than the prepaid gift card a consumer might purchase from a grocery store checkout aisle. By giving employees a PEX Visa® Prepaid Card, you are protecting the business from unnecessary spending and potential fraud. Here’s how:

How it works
With a prepaid business card solution, employees are given a PEX card to make purchases on behalf of the company. The PEX Card is funded only with the amount of money that an administrator decides on the backend. This could be a daily amount (per diem) or lump sum amount.

Employees can only spend where you allow them to spend
When an administrator issues PEX cards to employees, each card can have unique merchant category restrictions through the PEX Admin desktop site, Admin and Cardholder mobile apps. For example, your company might only want to permit spending on fuel, and block all other spending. When you set merchant categories restrictions, the PEX card will only work at gas stations, but would be blocked at restaurants. Use unique merchant rules for every PEX card, depending on your company’s needs. 

Protect your company credit line
With PEX, you can only spend what’s on the card. If a card balance is $300, any attempt to spend beyond that will be blocked. Not only are you protected from a rogue employee that overspends, but the company credit line is protected in case the card gets lost or stolen, in the event you aren’t able to block the card right away. 

Block cards instantly
All PEX cards can be deactivated or blocked instantly through the PEX Admin site and app. Companies with high turnover or seasonal employees appreciate the ability to instantly block access to funds. If a PEX card is lost or stolen, the company administrator can take action to prevent any charges from taking place on the card.  

Squash overspending temptation
When employees are given free rein on travel or meals, there is no incentive for them to watch what they spend. With PEX, you can give employees a daily spending limit that resets each morning. When they are out of money- that’s it, unless a company administrator personally authorizes more spending. Your employees will be more conscientious about where they spend company money.

Ready to learn more? Request a demo with a PEX representative for a one-on-one conversation about how PEX can work for your business. Or, download a Fact Sheet to learn more about PEX.