Enterprise Bank & Trust
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Debit & Credit Cards: The Choice Depends on Your Preferences

July 26, 2017

Mark Volkmer, SVP, Card Services

There is no doubt convenience is a motivator of behavior. One example of convenience driving behavior is the increase in debit and credit cards. In fact, plastic is so prevalent many people no longer carry cash at all, and check writing seems destined for the same fate.

Businesses, just like people, have a choice between debit and credit cards. While the choice may seem straightforward – take the money directly out of my account today, or pay later – there are a few other advantages to using one over the other businesses should take into consideration. Let’s explore.

The Advantages of Business Debit

Budget and expense management: Using a business debit card is a more disciplined approach to spending within your means. You and your employees are less likely to overspend or make purchases you can’t truly afford because the funds available are finite.

Rewards programs: Perhaps more typically associated with credit cards, reward programs offer businesses ways to earn rewards or cash back for using their debit cards. Enterprise Bank & Trust is a card-issuing bank, so all debit card holders are automatically enrolled in our ScoreCard Rewards program. This program allows you to earn rewards redeemable with a variety of online merchants.

Mobile Wallet: You may have heard of or use “Apple Pay,” a mobile payment and “digital wallet” service from Apple that lets users make payments using an iPhone, Apple Watch, iPad or Mac. Soon, Enterprise’s “Mobile Wallet” will work with Apple Pay, Samsung Pay, and Google Pay, which covers virtually every smartphone type. Since your card is never taken out of your wallet, it reduces the chances of fraud or a lost or stolen card. Your card information is encrypted, adding an additional layer of security. And there are more benefits as well. Having your card information on your mobile device means you don’t have to carry or purse or wallet into a store that supports mobile wallet technology – making for a faster checkout process as well.

As an added bonus, Enterprise is a member of Allpoint, a surcharge-free network that gives people access to more than 55,000 ATMs worldwide for cash withdraws from a debit card. Many of those ATMs are in large retailers like Costco, CVS, Target, Walgreens, and 7-Eleven.

The Advantages of Business Credit

Improved cash flow: When an employee purchases goods for the business or takes a client to lunch, a debit card pulls cash from your account immediately. A credit card, however, delays payment until a statement is generated and then paid. Depending on the date of the purchase and your monthly billing cycle, you may have nearly 60 days to pay for the purchase. This leaves cash in your account for a longer period – making it available for you to use for other business expenses such as inventory, sales, or other operational costs.

Easy reconciliation: For the person in charge of accounting in your organization, one nice advantage of credit card statements is they reflect all credit card transactions. Bank statements, on the other hand, list out every deposit, withdraw, ACH payment, interest, and more. Reconciliation is faster and easier with a credit card – especially for larger organizations with a high number of transactions and multiple cards.

Cash-Back or Points-Based rewards programs: These popular programs let you earn cash-back or points-based rewards as the card is used.

The cash back option – where funds are simply returned to you on your statement – are popular with CFOs and Controllers. The formula is simple – you spend, you earn, and you get cash back every month based on use. The cash back option further boosts your cash flow as well.

One of the many advantages of Enterprise being a card-issuing bank is the support behind you should issues arise. At Enterprise, we are responsible and will provide high quality service for your account needs, meaning we work directly with you on things like credit line increases, fraud protection, or any other needs. Be sure you know who is issuing and servicing your card.

To discover more about Enterprise debit or credit cards, reach out to your Relationship Manager, or contact us. Let’s start a conversation.


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