Even big companies require their employees to make purchases on behalf of the company sometimes. In such a scenario, carelessly handing out cash or even signing a cheque can increase the possibility of human error. While carrying out such practices, there is an increased risk of theft and fraud. These employee debit cards come with the employees’ and company’s names. Hence, most companies hand out employee debit cards to their employees. This makes it simpler for the business to keep tabs on budgets while also keeping track of purchases and expenses. It gives the employees the freedom to carry out transactions anytime and anywhere without going through a lengthy bureaucratic process. This saves time for both the employee and the organization. An employee debit card offers flexibility in payments for employees and organizations.
How does an employee debit card work?
The use of an employee debit card has a lot of advantages. But let’s first examine how these cards function. An employee debit card is linked with a business checking account or an enterprise-sponsored employee account. The type of bank account the card is linked to depends on the nature of transactions and the company’s needs. Limits are usually applied to these debit cards when transactions at ATMs. The limit set on the card varies from bank to bank and the account holder’s discretion. The daily ATM withdrawal limit for the Bank of America employee business debit card is $100. With the account holder’s consent, this sum may be changed.
These cards are a great way to replace petty cash and cheques that can be easily lost or damaged. As per Bank of America’s policies, a liability of $0 is guaranteed if the debit card gets stolen, damaged or needs to be replaced. This applies even in the case of fraudulent transactions. Bank of America assures its business clients that in case of a fraudulent transaction from an employee debit card, the amount will be recovered by the next business day. Bank of America also takes the possibility of fraud very seriously. Hence they promptly inform their clients if any abnormal patterns in transactions are observed. If a potential fraud occurs, the Bank of America immediately blocks the account and the card so the business capital can be secured. One of the recent features of the Bank of America is the digital debit card. This allows users to access their debit cards via their Bank of America mobile app in case the debit card gets stolen, misplaced or needs to be replaced. A replacement order can also be set up from the mobile app itself. Lastly, Bank of America sends out monthly online receipts to keep track of the purchases made by the enterprise and a particular employee.
Some of the security features for employee debit cards laid down by the Bank of America include-
- No access to account balances
- Cards can only be linked to 1 account at a time. No additional arrangements can be connected with the same card.
- Transfer of funds between other versions is not allowed.
- Bank of America offers the Total Security Protection® package, which includes fraud monitoring.
- $0 Liability Guarantee is also included as one of the features. This ensures that credits or fraudulent charges from the card are replaced into the bank account by the next day.
- Cashback is available on PIN-based purchases.
Setting limits on employee debit cards.
The process of setting limits on employee debit cards can only be initiated by the account holder, as per the policies of Bank of America. The employee debit card is linked to one business account only. However, this card cannot be merged with any digital wallets for security reasons. As stated before, the daily ATM withdrawal limit for an employee debit is 100 dollars per day. However, this number can be altered by the account holder and be set to a maximum of $7500 per day. Regarding purchasing limits, the daily purchase limit can be set to $7500 per day. The account holder can also change this amount.