Business

What is a corporate debit card and how UK businesses can benefit from it

Paola Faben Oliveira

13.02.23 (updated more than 1 year ago)

Read time 2 minutes

Any business with expenses to pay will need to find a convenient, cost-effective method for spending and purchasing. For many companies, this is a corporate debit card.

But what is a corporate debit card, and what benefits does it offer? We’ll answer these key questions and more here in this guide. This should help you decide whether corporate debit cards are the right choice for your business.

So, let’s get started.

What is a corporate debit card?

A corporate debit card is a payment card, which draws funds from a linked business bank account. It’s usually used for covering everyday work-related expenses, such as supplies, travels, equipment or meals.

Having a corporate debit card means that employees don’t have to use their own money and claim expenses for reimbursement later on.

Corporate debit card vs credit card

Now, how is a corporate debit card different from a credit card? Here’s a quick look at the main differences between the two:

Corporate debit card	Corporate credit card
Linked to business bank account	Carries a credit balance that must be paid off at the end of the billing cycle
No interest to pay	Charges interest
Usually easier to get, even with a low credit score	Often requires a high credit score to successfully apply for a credit card
Doesn’t usually impact your business credit score	Helps to build your business credit score
No risk of overspending or getting into debt	Offers a flexible line of credit (with spending limits)
Standard fraud protection	Enhanced fraud protection

💡 Read more: Corporate credit cards for UK businesses: a practical guide

Corporate card benefits ✅

Here are the main advantages of corporate debit cards for your business:

Accepted everywhere

No interest to pay

Helps to separate personal and business expenses - which is essential for accounting and liability purposes

Much more convenient than using petty cash

Provides a more organised and accountable way to manage business expenses

Some corporate cards come with rewards and extra perks.

wise-business-card

Wise Business Card

Need to cover international business expenses? Use the Wise Business Card, a powerful multi-currency card for spending all over the world. It’s the ideal choice for covering travel, accommodation and purchases from overseas suppliers.

The Wise Business card automatically converts currency at the mid-market exchange rate whenever you spend, for just a low conversion fee. There are no annual or monthly fees, nor foreign transaction fees.

What’s more, you’ll even get 0,5% cashback on eligible purchases.

Open a Wise Business account and you can get an employee expense card for everyone who needs one. You’ll stay in the driving seat, with the option to pre-set spending limits and track expenses all in one place.

Learn more about Wise Business

Read more about corporate cards 💡

If you want to explore more topics and options related to corporate cards, have a look into some useful articles:
Best credit card for business expenses in the UK Charge cards for business: overview of UK providers 4 best cashback business credit cards in the UK - and one debit card alternative 5 best credit cards for business travel in the UK - plus one debit card alternative Prepaid business cards UK: overview of providers Corporate credit card for UK businesses: a practical guide Allstar expense card UK: features and alternative Tide expense cards UK: cost and features What is a charge card?Definition and overview for UK businesses

If you want to explore more topics and options related to corporate cards, have a look into some useful articles:

And that’s it - a quick guide about corporate debit cards. We’ve looked at what they are, and how they differ from business credit cards. And of course, the benefits of using a corporate debit card.

You should now have all the information you need to decide whether something like the Wise Business Card could be the right option for your company.

Sources used:

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*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.