A guide to prepaid corporate cards in the UAE

This shift is particularly evident in the widespread acceptance of card payments throughout the country. From small marketplaces to high-end retail establishments, the convenience of card transactions has become a hallmark of the UAE's commitment to embracing cutting-edge financial technologies. Prepaid corporate cards, in this context, come up as a practical and strategic choice for companies operating in the UAE.

Prepaid credit cards are a safer alternative to cash or checks and don't require a business bank account. Here's what you need to know about using this type of card for your business.

‍What are prepaid corporate cards?

‍A prepaid corporate card works by allowing you to load funds in advance, which you can then use for your business transactions. Once you've used up the loaded balance, you'll need to add more funds to keep using the card.

Unlike regular credit cards that tap into a credit line, prepaid corporate cards use your own preloaded money. This means you won't be racking up any interest on these cards, and they don't require a credit check.

Companies can provide employees with prepaid cards for covering work-related expenses instead of reimbursing them through personal cards. It's a way of giving employees the ability to make purchases using company funds while also keeping a close eye on the budget. This not only simplifies the expense management process but also ensures better control over company finances.‍

Benefits of Using Prepaid Corporate Cards for Businesses

No accumulated debt:
Prepaid corporate cards operate on the principle of using preloaded funds, ensuring that businesses avoid accumulating debt. Unlike traditional credit cards, there's no credit line involved, offering a straightforward and debt-free financial approach.

Cost control and budgeting:
These cards empower businesses with cost control features, allowing them to set spending limits according to specific needs. This proactive approach helps maintain budgetary discipline, preventing overspending and promoting effective financial management.‍

Track card expenses in real-time:
One of the significant advantages of prepaid corporate cards is the ability to track expenses in real-time. Companies can monitor transactions as they happen, providing a clear and up-to-date overview of expenditures. This real-time tracking enhances transparency and facilitates quick decision-making.

No lengthy reimbursement process:
Prepaid corporate cards streamline the expense management process by eliminating the need for a lengthy reimbursement procedure. Employees can use the cards directly for business expenses, reducing administrative burdens and ensuring a more efficient financial workflow.

Cleaner accounting records for tax filings:
Utilizing prepaid corporate cards results in cleaner and more organized accounting records. The straightforward nature of these transactions simplifies the categorization of expenses, making tax filings smoother and more accurate. Most prepaid corporate cards also come with an expense management platform that can be directly synced with the company’s accounting software. This benefit not only saves time but also minimizes the chances of errors in financial reporting.

‍Consider Alaan's Prepaid Corporate Cards 

Alaan is much more than just a business card. It’s a spend management solution for start-ups, small businesses, and enterprises. In addition to providing prepaid corporate cards for your organization, Alaan provides expense management, accounting automation, real-time expense reports, security and seamless integrations with accounting software.

With Alaan, there’s no charge to set it up, no fees to use it, and no interest charges on purchases. You don't need to personally guarantee your Alaan account and there’s no credit check required. In fact, Alaan pays you back in terms of cash-back on all FX transactions.

Features include:

- 2% cash-back on all FX transactions

- Automated receipt matching and verification

- Category, merchant and spending limits

- Multi-step request and approval flows

- Smart accounting integrations

- Multi-factor authentication and single sign-on (SSO)

- Advanced roles and permissions

- Dedicated account managers

With Alaan, you can eliminate the complexities associated with expense management, streamline your cash flow, and empower your employees to perform at their best without the hassles of reimbursement.