What are Perc Cards and How Do They Work?
Perc cards, also known as "per diem cards", are a type of prepaid debit card issued by companies to their employees for business expenses. They offer a convenient and secure way to manage and track business spending, often with features that simplify expense reporting and reconciliation.
How do Perc Cards Work?
- Prepaid Nature: Perc cards are loaded with a specific amount of money by the employer, setting a limit on employee spending.
- Spending Control: Companies can establish spending restrictions based on categories, vendors, or specific locations, ensuring compliance with company policies.
- Real-time Tracking: With online platforms and mobile apps, both employees and employers can monitor real-time transaction data, allowing for better financial oversight.
- Simplified Expense Reporting: Transaction data is often automatically recorded and integrated with expense management software, simplifying the expense reporting process for employees.
Key Benefits of Perc Cards
- Enhanced Spending Control: Companies gain greater control over employee spending, eliminating the need for individual expense approvals for every purchase.
- Improved Expense Reporting: The automatic transaction recording simplifies reporting and eliminates the need for manual data entry, saving time and reducing errors.
- Increased Security: Perc cards are typically equipped with security features like chip and PIN technology, offering greater protection against fraud compared to traditional credit cards.
- Streamlined Budgeting: Companies can accurately track spending and monitor budget adherence with real-time data access.
When are Perc Cards Useful?
Perc cards are particularly useful in scenarios where employees need to make frequent business purchases. They are widely used in industries like:
- Travel & Hospitality: For travel expenses, such as airfare, accommodations, and dining.
- Sales & Marketing: For promotional materials, client entertainment, and conference fees.
- Construction & Manufacturing: For purchasing supplies, materials, and equipment.
Tips for Choosing the Right Perc Card Program
- Consider your company's needs: Evaluate your specific expense management requirements and choose a program that aligns with your budget and spending patterns.
- Look for user-friendly platforms: A simple and intuitive platform simplifies employee usage and minimizes training requirements.
- Explore integrations: Choose a program that integrates with your existing accounting and expense management software to ensure seamless data flow.
- Seek out security features: Prioritize robust security features to safeguard your company's financial data.
Conclusion
Perc cards are a valuable tool for companies seeking to streamline expense management and improve financial control. By offering a secure and convenient method for managing business spending, perc cards enable businesses to achieve greater efficiency and transparency in their financial operations.