Business debit cards: benefits and types

Using a business debit card is one of the simplest and most convenient ways of making business purchases. Whether for online use, purchases in physical stores, or ATM withdrawals, debit cards are extremely useful. Find out how to select a corporate debit card for your bank account and see what benefits you’ll receive.

What is a business debit card? 

This is a debit card linked to your company’s business bank account. A business debit card can be used to cover business expenses and purchases. It’s a way to manage your cash flow by paying directly from your account, as needed, with no delay.   

This could mean using your debit card online to pay for supplies. You can also make ATM withdrawals at home or when traveling. Your corporate debit card lets you spend money in stores around the planet, too.

Many business credit cards are used for the same reasons. The main difference is that you’re using your cash in your bank account with a debit card. With a business credit card, you’re borrowing the money you spend. Do you need a credit or debit card for the company? Find out more about the differences between debit and credit cards. 

How to get a business debit card

Small business owners and large companies can request a corporate debit card. It needs to be linked to their current account or business checking account at a bank or any other financial institution. Visa and Mastercard are the main networks, with cards issued by them giving you access to their ATMs and the stores that accept them. 

The process for ordering from Genome online is simple, and you can get started by opening an account online. You can choose from physical and virtual Visa debit cards. Both types of debit cards can be used online, in stores, and for contactless payments and can be linked to Genome’s accounts in different currencies.

Business debit card vs. business credit card

The question of whether you need a business credit card or debit card can be answered by looking at the key differences between them. You may decide that you need a business credit card or a business debit card or simply use both of them.

Feature	Business debit card	Business credit card
Source of funds	Taken directly from the linked business checking account	Borrowed as credit
Interest	None	Yes, if unpaid at the end of the credit card grace period
Risk of debt	Low	Higher
Builds business credit score	No	Yes, build credit as you use the credit card.
Spending limits	Based on balance	Based on the credit limit
Other features	Withdraw from ATM,virtual or physical card	Limited purchase protection on eligible purchases

Can employees use business debit cards?

When you request a debit card to cover business expenses, who is going to use it? It can make sense for small business owners to get cards that their employees can use to cover their business spending. 

The cards will be linked to the main business account and can be controlled through spending limits and permissions. In addition, some financial providers allow you to issue cards for specific functions. It could be for travel and international transactions. Or it could be used to buy media online. 

All the spending activity, expense tracking, and cash flow management will be significantly simplified with expanded report features. It makes it easy to maintain financial control and spot any unauthorized transactions.

The pros and cons of corporate debit cards 

Small business owners should consider whether business debit cards could fit in when considering their financial needs. To do this, it’s a good idea to start by looking at the pros and cons of using them for online banking and other types of corporate spending.  

Advantages of business debit cards

• Payments are more accessible. The majority of stores and websites across the world now accept the leading card networks. Rather than simply making online transfers, you can now start withdrawing money for your business needs and pay in stores wherever you are. It is a simple way to pay for everyday transactions and to keep control over your company’s finances at the same time.

• Ease of use. If you already own personal credit and debit cards, you know they are simple to use. Look for ATMs and stores that accept your card issuer network, and you’re ready to go. Cash withdrawals and in-store purchases are easy to make, making a debit card ideal for everyday expenses.

• Access to bank account funds at any time. Unlike prepaid debit cards or a business credit card, with a debit card, you always access your money directly from your account. It means you can manage your cash flow and expense tracking without worrying about whether you pay interest or accumulate debt.

• Safety of funds with fraud protection. Enhanced security features like virtual debit cards and tokenization help you avoid fraud and unauthorized transactions. Use online financial tools and set up account alerts to manage expenses and purchases. It will ensure that your company applies good financial discipline when it comes to spending. 

What can you use a business debit card for?

Business debit cards are extremely useful for meeting many types of corporate expenses. Whether you use the card personally or request employee cards for the team to use, this is a way of carrying out the following transactions:

• Paying vendors and contractors. Recurring payments and one-off expenses can be handled equally easily.

• SaaS and software subscriptions. If you have recurring spending patterns on subscriptions, using a debit card can help you save money and time by making sure that you never miss a payment.

• Online advertising and marketing spending. Those expenses you need to make to promote your services can also be made from a business debit card, just as they can come from a business credit card.

• Travel and hotel bookings. Paying for travel expenses directly from your business checking account is one of the best uses of a debit card.

• Office supply purchases. Avoid unauthorized purchases or delays in getting hold of vital supplies by using your card. 

Disadvantages of business debit cards

• Payment limits. Some financial institutions restrict the daily spending limit. You should find out about any limits before taking out a card. You should also check whether increasing the limits is possible and what ATM withdrawal fees apply.

• No revolving line of credit is available. This isn’t a business credit card, so you can’t access loan funds when you need them like you would with a business credit card. You simply spend money in the account linked to it by your card issuer.

• Lack of reward programs. Compared to a business credit card, you might be slightly disappointed at the lack of rewards programs and extended warranties. It is simply a way to pay for goods and services, with added fraud protection. 

Additional benefits with Genome cards

As you can see, there are more benefits to business debit cards than potential drawbacks. In addition, we can now look at the extra advantages offered by Genome’s debit cards. With Genome, you can get multiple virtual and physical cards and use them for all your business needs.

The benefits of virtual debit cards with Genome

Each type of card has a range of benefits. You can start using virtual cards right away as soon as you order them. Since it’s a digital card, it is perfect for online and contactless use and is compatible with Apple Pay, Google Pay, and Garmin Pay. Meaning you can easily make in-store contactless payments.

You can order as many Visa cards as you need with Genome as your trusted card issuer. You can get the first 100 virtual cards for just 1 EUR/card and use them for all your business expenses. If you need cards for media buying, our special cards for ads provide the ideal solution.

The benefits of physical business debit cards from Genome

If you prefer a physical card, this is the perfect way to pay online, take out money from ATMs, and pay in stores. You can use our cards when traveling, as all our cards can be linked to accounts in EUR, USD, GBP, PLN, CHF, CZK, HUF, and SEK.

Genome delivers cards anywhere in the European Union. In terms of added security advantages, you can order a debit card with no details printed on it. It ensures that no one else can use the card if they find it or steal it.    

Use our financial tools to choose the spending limit that suits you on either type of Genome corporate card. You can then track your expenses and prepare your taxes for the end of the year. Use your PC or laptop to track your expenses, or download the Genome app.

How to order a Genome business card 

Open an account in Genome online to create a business wallet.

With your business wallet now open, you can order Genome’s corporate debit card online. Choose a virtual or physical card to complete your onboarding once you’ve completed the identity verification process.

Opening a business account also gives you instant access to our many other services, like SEPA Instant and Credit Tansfers, batch transfers, multi-currency accounts, and much more!

Business debit card security features

Genome business debit cards come with built-in security features to keep your business and money safe at all times.

• Freeze or unfreeze instantly, giving you complete control over when the cards can be used.

• Optional no-print card data for physical cards. This means that your card can’t be used fraudulently by anyone who gets hold of it. 

• Real-time transaction alerts let you see exactly how your card is being used.

• Spending limits are used to control money flow and not to overspend.

Discover the benefits of a business card

Using a business debit card gives you a simple yet highly effective way of handling your expenses and purchases. By choosing a card that meets your needs in terms of limits and controls, you can stay fully in control of your business purchases.  

FAQ

What is a business debit card?

Also known as a corporate debit card, it is a type of card that businesses can order and use for their in-store and online payments, as well as the option of making an ATM withdrawal when needed. It differs from a business credit card in that you only access money from your account rather than borrowing credit funds.

What are the benefits of a business debit card?

Just like personal debit cards, corporate debit cards have many benefits. They are easy to use and manage. They don’t have a credit score attached to them and allow you to make payments in stores and online. 

Does a business debit card have your name on it?

Usually, business debit cards contain your company’s name, although not all financial providers print data on cards. For instance, Genome’s corporate debit card won’t contain any card information on it as an additional security measure if a company requests this approach.

Why do people get corporate cards?

People get such cards to make business-related payments rather than attempting to use personal cards to pay corporate expenses. It helps to keep all the company’s business finances in one place.