Dive summary:
- Prepaid credit cards may have once been the domain of college students or people with less than ideal credit, but the same kind of device is now being offered as a way for companies to keep employees on the straight and narrow.
- The cards' available resources are controlled at the home office, and companies also can limit them to certain uses, so workers cannot go outside the rules and then ask forgiveness when the bill appears.
- There also is a liability benefit because conventional cards draw on the company's total resources, and authorizing executives can be held liable if the company cannot pay.
From the article:
Employers no longer need to worry about exceeding credit limits or getting hit with late fees, over limit fees, or interest charges. ...