The ultimate guide to business debit cards for 2024

The article was updated on 24.10.2024

A business debit card can be a powerful tool for any business. Using a debit card linked to a business current account allows you to manage your finances more effectively and grow the business sustainably. We’ll be looking at what benefits business debit cards involve and how to choose one wisely. 

What is a business debit card?

A business debit card is a payment card issued by a bank or other financial institution specifically for business use. It allows business owners and authorized employees to make transactions directly from the company’s checking or savings account, providing a convenient and secure way to manage daily expenses. 

This card is issued by a bank or other financial institution for business use. They’re issued to the business owners, who can give them to their employees to make purchases, send transfers,  and take money out of cash machines. 

Business cards are linked to a business account and can be used for various reasons, such as managing cash flow. Making purchases and earning rewards. Corporate physical cards may be used for online purchases while traveling and to complete international business payments. 

Benefits of having a business debit card

There are plenty of reasons for having a debit card linked to your business current account, no matter how you plan to use it.  

Separate business and personal expenses

It’s important to note that a business debit card is linked to a business account rather than a personal one. Thus, you can maintain a clear distinction between your different expenses. If you have business savings, need to carry out transactions, or shop online for products, everything will be linked to the right account.

Improved financial control

The previous benefit gives you all the benefits to be gained from having better financial control. Your card transactions will be shown in real-time on your company account, with things like daily expenses and foreign currency purchases all clearly shown. It helps you monitor your cash flow and avoid overspending on cleared funds by letting you make good financial decisions. 

No interest or debt accumulation

Another of the key features of a business debit card is the way that you won’t incur interest charges or run up debt, which you could potentially run into when using a credit card. Since your card details can be easily checked at any time, you can carry out better financial management and stay in control by understanding every transaction amount.  

Worldwide acceptance and accessibility

Whether you want to withdraw Euro, Pounds Sterling, or other EEA currencies, you can use your business bank card for direct access to the latest exchange rates. In fact, these cards can be used all over the world, meaning that they offer a highly convenient approach to making international card transactions.

Employee access and spending limits

The next benefit is how your employees can use the card for in-store purchases or online with customizable spending limits. It gives you greater control over their expenses, as all the transactions made are debited directly to your company’s account and can be tracked easily.

How to choose the best business debit card

There are several factors to take into account when deciding which business debit card suits you best. It also depends on your business bank account type. The following are some of the key areas you should know about before making your decision.

Fees and charges

Take a closer look at the various fees and charges associated with your business debit card, and focus on the ones most relevant to the types of transactions and operations you plan to carry out. 

By doing so, you will better understand the costs involved and make informed decisions for your business.

ATM access and cash withdrawals

The charges to withdraw cash typically vary based on the ATM network you use, your location, and whether foreign currencies are involved. Select the debit card brand that is popular in your country and the regions you will travel to. 

International transaction fees

If you’re going to be carrying out transactions in different currencies, then you need to understand the foreign currency cash fees involved. Any transaction fee or charge for cash withdrawals abroad needs to be taken into account.

Security features

When using cash machines worldwide and for online payments with services like Google Pay, you’ll need to be sure that your business debit card has good security features to avoid fraud.  

Business debit card vs. business credit card: which is better?

You might be torn between choosing a debit card or a credit card, so which is best for your business management team and employees to use?

Pros and cons of business debit cards

Debit cards provide a cost-effective approach where you can keep fees low by maintaining good financial management. A business debit card offers safety with secure payments and a high level of control, with deposit transactions and withdrawals keeping your cash flow recorded in a single place. 

Additionally, some providers, like Genome, offer virtual and physical card options. Both card types give you access to your funds and contactless payments at all times and anywhere in the world. If you or an employee is traveling, it’s easy to withdraw cash in foreign currencies with reasonable debit card currency charges. 

Pros and cons of business credit cards

With credit cards, you may face a higher annual fee as well as an interest charge if you don’t pay the full balance at the end of the month.

It is offset by the fact that a credit card can help you deal with unexpected costs and poor cash flow situations. For example, you might need to take money out of a cash machine to cover an emergency repair to a piece of machinery or property. In this case, you might feel that paying the transaction costs is worthwhile. 

How to apply for a business debit card

The process of getting a new debit card for your company is simple, especially if you have a business account at Genome.

You can do so by following these simple steps.

Step 1: Start the process

Open Genome’s dashboard and go to the Cards tab. Note: if you haven’t opened an account for your business yet, you will need to start the onboarding process: verify your identity and upload the company registration certificate and owner/director details.  

Step 2: Choose the right card

The next step is to select the card that best meets the needs of your business current account. You can choose from a physical card if you want to withdraw from cash machines in a local branch of any bank or elsewhere. A virtual card may be your choice if you’re going to carry out your transactions online. Both are perfect for corporate payments and are compatible with Google Pay, Apple Pay, and Garmin Pay.

Step 3: Submit your application

Link the card to your preferred account, either in EUR, USD, GBP, PLN, or CHF, and confirm the cardholder details. Consider issuing multiple cards for just 1 EUR/card.  

Tips for managing your business debit card effectively

Once you successfully apply for a business card, you can start to pay your suppliers and manage your finances more effectively. The following tips will help you handle your money more easily.

Regularly monitor and reconcile transactions on your business current account

You might want to check your balance whenever you pay someone or receive money. Alternatively, you might choose certain times of the week to carry out this revision. It lets you ensure everything is in order and every transaction amount is correct. You can also check the latest currency charges to understand how any rate changes have affected you.

Set clear spending limits and guidelines

As with any type of bank card, it’s important that you keep control over your money. When different members of an organization are using the same card, this becomes even more important. You need to set clear limits that tie in with each person’s roles and responsibilities. 

Utilize financial management tools

Tools like real-time notifications for all transactions are a terrific help in keeping your business budget under control.

Protect your card and account information

Good security measures are needed to keep your card and account details safe. These include setting strong passwords and using two-factor authentication, where possible. Check for any on-screen warning advising you that better security is needed.

Limit cash withdrawals and avoid overdrafts

Withdrawals from cash machines provide a highly convenient way to get hold of money quickly on business days and bank holidays. However, you should consider setting limits to avoid overdrafts or unnecessary spending. 

Key takeaways

Debit business cards offer an excellent way to manage your company’s money effectively and without fuss. By taking into account your business needs and using your card to meet them, this can prove to be an excellent way to operate. Consider ordering a card for your business current account.

FAQs

Are there any fees associated with business debit cards?

Expect to pay some small fees for the likes of international payments and foreign currency cash fees. Check the T&Cs when registering, as this is where you can see the foreign currency transaction fee and the fees for any other operations you expect to carry out.

Can a business debit card be used for online purchases?

Yes, you can use a physical or virtual debit card to carry out online purchases from participating merchants anywhere in the world. Security measures such as two-factor authentication help to make this one of the safest ways of buying products and services globally. 

How do I report a lost or stolen business debit card?

You should block the card using your online account and contact the customer support team at your card issuer immediately. This will allow them to revise any suspicious transactions that have been logged since the loss and issue a new debit card. If you require support, let them know what has happened. 

Can I use a business debit card to pay employees or contractors?

Yes, you can make transfers to people all over the planet using your debit card and business internet banking. The other option involves withdrawing money from a cash machine and paying with cash. This flexibility allows you to choose the way to operate your business funds that suit you. 

What happens if there are insufficient funds in my account?

If you have an agreed overdraft, you will still be able to carry out transactions up to this limit. However, bear in mind that you will be charged a fee or percentage mark for this. With no overdraft in place, you won’t be able to carry out any more transactions until funds are received.