| By :
Marco Carbajo
Opening a business bank account is a key part of running a business. I'm sure you're familiar with online banking and overdraft protection but let's cover the key advantages of the business debit card also known as the business check card. While checkbooks will always play a key part in your business the faster and more convenient way to make company purchases, track expenses, and manage finances is with a business debit card. This card works like your business checkbook and each time you use the card to make a purchase the amount of the purchase is deducted right from your account. Basically the credit limit on your business debit card is the amount of funds you currently have available in your business checking account. Now keep in mind some banks will provide overdraft protection and even offer an unsecured business credit card that you can link to your account. This comes especially handy when you may not have enough funds to cover a debit card purchase. For example, let's suppose you have a $500 balance in your business bank account and have an unsecured business credit card linked to that same account with a $1,000 limit. You go to the store and purchase a computer for $900 using your business debit card. Since you only have $500 in your account the unsecured credit card picks up the difference of $400 by tapping into the $1,000 limit you have available therefore allowing the transaction to go through. Another advantage that comes with a business check card is convenience. Each bank that offers a business debit card will either carry the Visa or MasterCard logo allowing you to use your card anywhere Visa or MasterCard is accepted which is pretty much everywhere. This again comes in handy if you travel because you don't have the hassle of getting out-of-town checks cashed. You also don't have to deal with providing two pieces of identification or waiting for check approval. Maintaining good sound records is another major plus that comes from using a small business debit card. When you use the card each and every transaction appears on your statement so you can easily track your business expenses which make it a lot easier on your bookkeeper too! Finally, a business debit card also has the advantages of an ATM card so you can make cash withdrawals at thousands of locations. When you apply for your debit card the bank will issue a personal identification number (PIN) to help protect the account and prevent unauthorized use. Even though using a business check card does not build your business credit files it does play a key role in your bank credit and banking history. So use your debit card responsibly and avoid mismanaging your account at all costs.
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