Webexpenses Expense Card vs Credit Card graphics with a 'VS' behind it

Prepaid Cards vs Credit Cards: The Differences

By Evie Parker | 12th August 2025

It’s not hard to see why you – and many other businesses – rely on credit cards for daily spending. They’re convenient, easy to use, and widely accepted. But they’re no longer the only option. Prepaid expense cards – cards that are linked to pre-allocated funds – offering a flexible alternative alongside traditional company credit cards and personal cards reimbursed later.

You might be wondering why. Perhaps you’ve seen prepaid expense cards (like our own Expense Cards) and questioned why you’d choose these over company credit cards. It’s a fair question – and in many cases, credit cards could still be the right fit for your business.

That said, credit cards do have some drawbacks – and prepaid expense cards bring unique advantages you may not have considered. Here’s a straightforward comparison of prepaid expense cards and credit cards – so you can see how your business might benefit from switching to a solution purpose-built for modern expense management.

Avantages of prepaid cards

Prepaid expense cards are preloaded with funds and aren’t linked to a credit facility. They're a straightforward option for controlling spend and simplifying expense processes. Using our own Expense Cards as an example, let’s delve into the detail:

Fast setup and approval: No credit checks, bank involvement, or employee verification required. Cards can be issued quickly – instantly if virtual – and you set the limit of the funds available for use.
Better spend control: Fixed balances prevent overspending. Funds can be allocated per trip, project, or policy, allowing spend rules to be enforced at the point of purchase.
Enhanced security and privacy: Prepaid cards aren’t linked to bank accounts and don’t require sensitive personal information.
Ease of use: Accepted anywhere Visa or Mastercard are, with simple options for reloading funds as needed.

With our Expense Card, prepaid functionality is fully integrated with our platform. That means no switching systems, no extra licenses or chasing receipts. All transactions flow directly into your expense claims.

Disadvantages of prepaid cards

Despite their control benefits, traditional prepaid cards can have drawbacks:

No credit buffer: If something unexpected comes up, employees can’t spend more than what’s on the card.
Fees: Some providers charge for setup, reloading or ATM use. These can add up.
No rewards: Unlike credit cards, there’s generally no cashback or loyalty scheme.
Fund recovery limits: If a card is lost or unused funds are left after a cancelled event, recovering funds might be tricky.

Our Expense Card avoids most of these pitfalls. With no hidden fees, secure tracking, and built-in support, it gives you all the advantages of prepaid without the usual downsides.

Advantages of credit cards

Credit cards remain a popular choice for teams needing flexibility and emergency access to funds.

Higher limits: Useful in emergencies or for large purchases.
Spending visibility: Transactions appear instantly, which helps track and monitor behaviour.
Perks: Some cards offer cashback, rewards or business travel incentives.
Purchase protection: Built-in security features protect against fraud and loss.

When connected to expense management software, credit cards can also support better record-keeping – but integration isn’t always seamless.

Disadvantages of credit cards

While flexible, credit cards come with more risk – especially without strong expense policies.

Overspending risk: Fundamentally, with a credit card, you’re hoping for the best. The nature of a credit limit is that it makes it much easier for staff to go over budget.
Fraud potential: Cards with high limits and loose controls can expose your business to misuse. And when you’re dealing with high volumes of expenses, things can easily slip the net.
Fees and interest: Annual charges, late fees and interest on balances all impact your bottom line.
Policy grey areas: Blurred lines between business and personal use are common – especially in smaller teams.

Unlike prepaid options, credit cards require more oversight to prevent mistakes and abuse. And that’s fine if you can meet that commitment. Then again, we don’t know of any finance teams with the spare time required to play policy police.

Bringing it together: Webexpenses Expense Card

Our Expense Card is built to give your team the control of prepaid cards with the visibility of credit card systems – minus the complexity.

Here’s what sets it apart:

Instantly issue cards to team members.
Fully integrated with Webexpenses software for seamless tracking and reconciliation.
Spend controls that stop transactions outside your policy.
No hidden fees.
Faster, cleaner claims – without chasing receipts or paperwork.

It’s a smarter way to manage company spend without the hassle of old-school cards. And you can use our Expense Cards alongside out-of-pocket reimbursement, depening on what works best for your company.

Our Expense Cards vs company credit cards at a glance

Feature	Webexpenses Expense Cards	Company Credit Cards
Setup & Approval	Instant issue for virtual cards, no credit checks or employee verification required	Lengthy approval process, credit checks required, bank involvement needed
Spending control	Fixed balance prevents overspending, custom spend rules at point of purchase, real-time controls and alerts	Credit limits can be exceeded, limited real-time controls, higher overspending risk
Integration	Native integration with Webexpenses, auto-categorisation of transactions, seamless reconciliation	Requires third-party integration, manual categorisation often needed, complex reconciliation process
Fees and costs	No card fees, no interest charges, no hidden costs	Annual fees common, interest on outstanding balances, late payment penalties
Security	Not linked to bank accounts, instant freeze/cancel capability, limited exposure if compromised	Direct access to credit line, higher fraud exposure, more complex fraud resolution
Admin Burden	Auto-sync with expense platform, reduced manual processing, one system for everything	Multiple systems to manage, manual transaction matching, higher admin overhead
Spending Visibility	Real-time transaction data, instant policy violation alerts, live budget tracking	Monthly statements, delayed policy enforcement, reactive monitoring

Prepaid expense cards vs credit cards: The bottom line

Webexpenses Expense Cards offer tighter control, lower costs, and seamless integration, while company credit cards provide higher spending limits and reward programmes but with increased risk, complexity and costs.

Choose a card that works for you

The right expense card for your business depends on how your team spends, your cash flow needs, and how closely you want to manage spend. For many, traditional credit cards are too risky, while basic prepaid cards don’t offer enough flexibility.

Our Expense Card was designed to meet the real needs of modern finance teams — giving you total control, instant visibility, and zero headaches.

Want to see it in action?

Book a free demo and see how our Expense Card can simplify spend for your team – with less admin, more control, and no surprises.