The benefits of using a warm card for your small business
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Spend control is one of the biggest challenges for small businesses. It can be difficult to manage spending when employees have access to your business accounts for things like deposits or travel. It’s such a big challenge that some business owners use personal credit cards for business to protect their business accounts. In doing so, they’re able to easily determine how much money employees spend and where by separating their spending from their employees’.
This challenge becomes even more difficult to handle when you operate a business requiring your employees to access your bank account. Whether employees need to deposit or spend using your corporate account, tracking, managing, and controlling employee use of your account can be difficult.
That’s where the warm card comes in.
What is a warm card?
Warm cards are a particular type of bank card that provides restricted access to your bank accounts. The typical warm card lets the holder deposit money into bank accounts but doesn’t allow for withdrawals.
Financial institutions typically issue warm cards to business owners as a security measure. This makes it possible for your employees to deposit funds without giving them open access to your bank account.
How do warm cards work?
Most warm cards are designed to allow employees to make deposits but limit them from accessing the money you have in your business bank accounts. Once the employees have them, these cards are straightforward to use.
For example, you may run a business that requires your general manager to make after-hours cash and check deposits at an ATM, but you don’t want to give the manager full access to withdraw money.
Instead, you give your general manager a warm card. When it’s time to make a deposit, they can use their warm card at the ATM, just like a debit card, but they’ll only have restricted access. So, when they swipe their warm card in the ATM, the only option will be to make a deposit.
Benefits of warm cards
Warm cards come with two key benefits:
- Fraud protection: Warm cards allow your employees to make deposits into your business accounts but restrict access to spend. This means your employees won’t be able to commit fraud by withdrawing money they shouldn’t or using a business card to make personal purchases.
- Convenience: With these cards, you don’t have to handle all the banking for your business. Your employees can take the deposits off of your shoulders.
How to get a warm card
Warm cards are relatively easy to get your hands on if your financial institution provides them. In most cases, you have three options for requesting a friendly card:
- Go to the bank: If your financial institution offers warm cards, you should be able to go to the bank branch and ask your banker for one. However, don’t expect to get it immediately. It typically takes a few business days for the institution to ship the card to you.
- Over the phone: You can also call your banking institution to request a warm card.
- Mobile banking app: Most financial institutions offer mobile banking apps. Those offering warm cards also make it easy to access these restricted cards on their banking apps.
What if employees need to spend money?
Standard warm cards aren’t always the best options for business owners. In particular, if your business requires multiple spending accounts, most warm cards won’t fit the bill. So, what do you do to make it possible for your employees to spend business funding for business activities while incorporating restrictions to protect your finances?
There are a few options to consider. Find the details of these options below.
Adjust access
Although most warm cards only allow users to make deposits, some financial institutions will enable you to adjust the restrictions of these accounts also to allow users to spend with them. However, this can create some challenges.
In particular, if you open a warm card up to spending, you likely won’t have control over the amount of money your employees spend on the account. This opens the door to fraud.
Another challenge with using a warm card as an employee spending account is that these aren’t credit cards or debit cards. They don’t have a Visa, Mastercard, Discover, or American Express logo on them. Instead, these are simply bank cards connected to your business checking account. As such, most merchants simply don’t have the infrastructure to accept them as a form of payment.
Take advantage of employee spending cards
Another option you can take advantage of is employee spending cards. With Ramp, you can practice employee empowerment by offering your employees spending accounts and protecting your business’s operating budget by limiting the amount of money they can spend on these accounts or who they can spend with.
Temporary spending cards
You also have the option to give your employees temporary spending cards. These are cards that activate on a specific date and are scheduled to expire on the date you choose. Consider working with a company like Ramp to provide temporary spending cards to your team when needed.
Temporary spending cards are a practical option for T&E management. When you schedule an employee for work travels, you can provide them with a temporary spending card that’s active for the entire time they’re gone but expires on the day you expect them to return.
Take part in employee reimbursement programs
You can also take part in expense reimbursement. That means your employee pays up front, and you reimburse them on their paycheck. However, be careful with this option because it could lead to your business expenses causing financial hardships for your employees. At the same time, reimbursement leads to unnecessary paperwork and introduces risk of error - both of which could cut into your business’s bottom line.
Get Ramp to take control over your business finances
Warm cards are an excellent option for some businesses, but they’re not the perfect option for everyone. If you need to give your employees a way to access your money, consider an alternative, like Ramp, that makes it easy to issue employee spending cards with spending limits as well as temporary spending cards.
You get much more when you work with Ramp too. Enjoy complete expense management, simple accounting integrations, access funding with sales-based underwriting, detailed financial analytics, and other features that can help put and keep your business finances on track. Find out how Ramp can help your business today.
- Higher credit limit than traditional business credit cards
- Spend management tools
- Give an unlimited number of physical and virtual cards to employees
- Spending controls and limits for employees
- Average savings of 5% from rewards and expense-reducing features
- More than $350,000 in offers from Ramp’s partners
- No annual fees, foreign transaction fees, or card replacement fees
- No credit check or personal guarantee is required
- No interest accumulation on your balance
- Seamless integration with numerous accounting software
- You must pay back the balance in full at the end of each month
- No elevated cashback rewards for specific categories
- You need $50,000 in your business bank account to qualify
- Cashback rewards
- Issue an unlimited number of employee cards
- Access to over $350,000 in offers from multiple partners
- Automated expense management software
- Track vendors and receive pricing insights from one dashboard
- Automated accounts payable
- Zero fees or interest
- No interest or fees
- Cashback rewards
- No personal guarantee
- Balances do not carry over, so you must pay them by the end of each month
- Your business must be incorporated to qualify for a card
- You need at least $50,000 in a business bank account to qualify
- Average net savings of 5% due to cost-reducing features
- Unlimited physical and virtual employee cards
- Access to $350,000 in deals from various partners
- Automated expense management software
- View vendor information and pricing on a single dashboard
- Automate accounts payable
- No fees or interest
- Cashback rewards with flexible redemption options
- Built-in expense management software
- No credit check or personal guarantee required
- Must be a registered business to qualify
- Must have most of your business spend in the US
- Get cashback on purchases
- Provide unlimited physical and virtual employee card
- Access more than $350,000 in deals from various partner
- Use automated software for expense management
- View vendor information and pricing on a single dashboard
- Automate accounts payable
- No fees or interest
- Cashback rewards on purchases
- Built-in expense management software
- No personal guarantee or credit check required
- Must be a registered business to qualify
- Must have most of your business spend in the US
- The Ramp Card is ideal for incorporated businesses
- Comes with automated expense management tools
- Provides 5% net savings on average
- Features AI-powered tools for detailed spending insights and cost-cutting recommendations
- Integrates seamlessly with accounting software to aid financial tracking and reporting
- No annual fees, foreign transaction fees, or card replacement fees
- Best for businesses aiming to streamline financial operations and enhance savings
- Offers 5% net savings on average through expense-cutting features
- No personal guarantee or credit check required for eligibility
- Automated expense management features like spending limits and receipt-matching
- Integration with accounting platforms including NetSuite, Quickbooks, and Xero
- Offers AI-powered cost-saving insights
- Unlimited physical and virtual employee cards
- Not available to sole proprietors or unregistered small businesses
- Requires $50,000 in a business bank account to qualify
Card Details
The Ramp Card is an innovative corporate card, particularly suited for LLCs, that combines automated expense management features with cashback rewards. It offers detailed spending insights with AI-powered recommendations for cutting costs, and integrates seamlessly with accounting software to simplify financial tracking and reporting. Cards come with no annual fees, foreign transaction fees, or card replacement fees. Ramp is an excellent choice for businesses that want to streamline their financial operations while saving money.
Pros
- Cashback rewards
- No personal guarantee or credit check required for eligibility
- Automated expense management features like spending limits and receipt-matching
- Integration with accounting platforms including NetSuite, Quickbooks, and Xero
- Offers AI-powered cost-saving insights
- Unlimited physical and virtual employee cards
Cons
- Primarily focused on cost-cutting, which might not suit all business needs
- Geared mainly towards U.S. businesses, which may limit its appeal for international transactions
Ramp’s charge card program comes with the additional perk of tools designed to help your business track and reduce its spending.
- No personal guarantee
- No annual fee
- Valuable cash back
- Additional tools to track spending
- Unlimited physical and virtual employee cards with custom limits
- Not available to sole proprietors
- Must have $50,000 in liquid assets
- Unlimited free virtual and physical employee cards
- Cashback rewards on purchases
- Customizable spending limits for employees
- Real-time transaction visibility
- Connects with accounting systems like QuickBooks and NetSuite
- Automates bill payments and invoice processing
- Provides a comprehensive audit trail and expert support for negotiations
- Unlimited virtual cards
- Real-time expense tracking
- Integration with accounting software
- Automated bill payments and invoice processing
- Requires full balance payments monthly
- Limited to businesses with most of their operations in the U.S.
- Corporate card and spend management platform
- Free employee cards with custom spending limits
- Cashback rewards on all purchases with no fees
- Built-in fraud protection ensures that your organization's finances are always secure
- Offers an average savings of 5% by identifying cost-saving opportunities
- No annual fees or interest
- Custom spend and vendor controls
- High credit limits
- Automatic receipt matching and expense categorization
- Not available to sole proprietors
- As a corporate charge card, balance can't be carried monthly
- Must have $50,000 in a business bank account to qualify
- Corporate card and spend management platform
- Unlimited employee cards with custom spending limits
- Cashback rewards on purchases
- Offers an average savings of 5% by identifying cost-saving opportunities
- Assists with software price negiotations
- No annual fees or interest
- Custom spend and vendor controls
- High credit limits
- Automatic receipt matching and expense categorization
- Not available to sole proprietors
- As a corporate charge card, balance can't be carried monthly
- Must have $50,000 in a business bank account to qualify
- Corporate card and spend management platform
- Cashback rewards on purchases
- Unlimited employee cards with custom spending limits
- Accounts payable software
- Uses business revenue to determine eligibility and credit limit
- No annual fees or interest
- Custom spend and vendor controls
- High credit limits
- Automatic receipt matching and expense categorization
- Only available to corporations, LLCs, and LPs
- As a charge card, balance can't be carried monthly
- Must have $50,000 in a business bank account to qualify
- Corporate card and spend management platform
- Cashback rewards on purchases
- Unlimited employee cards with custom spending limits
- Automated receipt matching
- Accounts payable software
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- Integrates with accounting platforms like NetSuite, Quickbooks, and Xero
- No credit check or personal guarantee required
- No annual fee or foreign transaction fees
- Must be a corporation, LLC, or LP to qualify
- Must have most of your operations and business spending in the US to qualify
- Corporate card with built-in spend management
- Cashback rewards on purchases
- Automated expense reports on fuel spending
- Advanced financial management features
- Unlimited free employee cards
- Requires a registered business and $50,000 in a U.S. business bank account to qualify
- Balance must be paid in full monthly
- Corporate card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- No personal guarantee or credit check required to qualify
- Advanced expense management automations and accounting integrations
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
- Corporate card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- Credit limits up to 30 times higher than traditional credit cards
- Sales-based underwriting makes for an easier qualification process
- Advanced expense management automations and accounting integrations
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
- Corporate card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- No credit check or personal guarantee required for eligibility
- Advanced expense management automations and accounting integrations
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
- Corporate card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- Advanced expense management automations and accounting integrations
- No personal guarantee or credit check required for eligibility
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
- Corporate card with customizable spending controls
- Cashback rewards on purchases
- Unlimited free physical and virtual employee cards
- Must have $50,000 in a business bank account to qualify
- Balance must be paid in full each month
- Advanced expense management automations and accounting integrations
- No personal guarantee or credit check required for eligibility
- No annual fee or foreign transaction fees
- Must be a corporation, limited liability company, or LP to qualify
- Must have most of your operations and corporate spend in the US (though international purchases are supported with no foreign transaction fees)
The Ramp Corporate Card is ideal for startups without a credit history. You just need an EIN number and $50,000 in a business bank account to qualify, and there's no credit check or personal guarantee required. Ramp's corporate card offers cashback on purchases and built-in expense management software to streamline your business finances.
Some of its features include receipt matching, subscription management, and AI-powered spending insights. Ramp is an excellent choice for startups that are aiming to earn rewards on business purchases while managing expenses.
- Ramp Corporate Card includes built-in spend management and travel-specific features
- Ability to set and enforce your company's travel spending policy on employee cards
- Features a travel dashboard displaying complete trip itineraries and flight information for each employee
- Offers cashback on purchases, including those made through travel booking platforms
- Provides AI-powered finance automation and insights
- Real-time expense reporting, customizable spending controls, and card templates for efficient financial management
- Seamless integration with over 100 applications, including travel management platforms
- No annual, application, or late payment fees
- Universal cashback reward applicable to all types of travel expenses
- Advanced financial management features suitable for tracking travel spending
- Compatibility with 100+ applications for streamlined travel expense management
- Requires a registered business and $50,000 in a U.S. business bank account to qualify
- Balance must be paid in full monthly
The Ramp Card is an innovative corporate card, particularly suited for LLCs, that combines automated expense management features with cashback rewards on purchases. It offers detailed spending insights with AI-powered recommendations for cutting costs, and integrates seamlessly with accounting software to simplify financial tracking and reporting. Cards come with no annual fees, foreign transaction fees, or card replacement fees. Ramp is an excellent choice for businesses that want to streamline their financial operations while saving money.
- Cashback rewards on purchases
- No personal guarantee or credit check required for eligibility
- Automated expense management features like spending limits and receipt-matching
- Integration with accounting platforms including NetSuite, Quickbooks, and Xero
- Offers AI-powered cost-saving insights
- Unlimited physical and virtual employee cards
- Primarily focused on cost-cutting, which might not suit all business needs
- Geared mainly towards U.S. businesses, which may limit its appeal for international transactions
- Corporate card particularly suited for LLCs
- Combines automated expense management features with cashback rewards on purchases
- Offers detailed spending insights with AI-powered recommendations for cutting costs
- Integrates seamlessly with accounting software to simplify financial tracking and reporting
- No annual fees, foreign transaction fees, or card replacement fees
- Excellent choice for businesses that want to streamline their financial operations while saving money
- Cashback rewards on purchases
- No personal guarantee or credit check required for eligibility
- Automated expense management features like spending limits and receipt-matching
- Integration with accounting platforms including NetSuite, Quickbooks, and Xero
- Offers AI-powered cost-saving insights
- Unlimited physical and virtual employee cards
- Primarily focused on cost-cutting, which might not suit all business needs
- Geared mainly towards U.S. businesses, which may limit its appeal for international transactions
Card Details
The Ramp Card is an innovative corporate card, particularly suited for LLCs, that combines automated expense management features with cashback rewards. It offers detailed spending insights with AI-powered recommendations for cutting costs, and integrates seamlessly with accounting software to simplify financial tracking and reporting. Cards come with no annual fees, foreign transaction fees, or card replacement fees. Ramp is an excellent choice for businesses that want to streamline their financial operations while saving money.
Pros
- Cashback rewards
- No personal guarantee or credit check required for eligibility
- Automated expense management features like spending limits and receipt-matching
- Integration with accounting platforms including NetSuite, Quickbooks, and Xero
- Offers AI-powered cost-saving insights
- Unlimited physical and virtual employee cards
Cons
- Primarily focused on cost-cutting, which might not suit all business needs
- Geared mainly towards U.S. businesses, which may limit its appeal for international transactions