OTP- Oh, The Pain

OTP– Oh, The Pain!

OTP. You must be thinking about one-time passwords right?

Well, in this case, it represents two meanings. Yes, one-time passwords (or one-time PIN) are passwords valid for a single login session or transaction on a computer system or other digital device.?

While they are also a critical part of the payments workflow that protects growing businesses, the workflow is often clunky and difficult to obtain– especially if your company uses a single credit card for business payments!?

As such, “OTP” will also be a fitting acronym for the title of this article “Oh, The Pain!” which seeks to talk about the hassle of using a single company credit card for payment and how it can create multiple roadblocks in the finance workflow.?

Now, whether you are an employee or the founder of a company relying on that one card to make company purchases– we want to ask – how has that been like for you? No matter what, we can ensure it involves many pitfalls.?

The pitfalls involved with having a single card for payment

Obtaining OTPs (One-Time Password)

Let us paint you a scenario between a founder and the employee.?

Employee: Hi boss, are you able to share your OTP so I can confirm some supplier payments for the event on Friday??

Boss: Not now, I’m currently in a meeting outside will only be in at 2.45PM today, let’s do it then

Employee: Okay, I will look for you later?

2.45PM, Employee: Hi boss, you here? Let’s do the OTP now?

3.15PM, Employee: Hi boss, you here already? Need the OTP, urgent supplier payment today

3.30PM, Boss: Sorry meeting overrun, can do now??

Employee: Cannot boss, now? in meeting with client. Later at 4.30PM can??

Boss: I’m busy already, let’s do it tomorrow then?

Employee: Cannot boss, supplier need the proof of payment by today if not they cannot deliver

Boss: Okay, let’s do it after dinner then at 7.30PM

Employee: Okay, I’ll work late for this one

As you can probably guess, the employee did not end up getting the OTP from his boss because their schedules did not align yet again.

What happens then? The payment to the supplier gets delayed, pushing back their deadlines way behind. Was all that back and forth communication really worth it??

Possibility of lost or stolen cards

Having a single credit card for payment increases the possibility of losing the card. If you have multiple cards, you can still rely on other cards to make purchases if one is lost or stolen. However, when you have only one card, it’s going to cause problems if you lose it.?

You would be unable to make purchases for the time being, causing major inconvenience to the business’s day-to-day activities. What if your marketing ads on Facebook are being paid with that card? You lose the opportunity to target awareness amongst your customers since the payment is halted.?

In addition, it takes a long time to cancel the card. You would have to send in a cancellation request, make a call to the bank provider, await emails, and the list goes on. What's the next course of action then?

Inability to track transactions in real-time?

In general, the due date for credit card bills is approximately 25 calendar days or three weeks from the statement date, after which late fees or interest charges may be incurred.?

Most times, it is only when the statement is received would you be able to understand the transactions that have been made using that card. In that situation, it’s easy to miss purchases you have never seen before.?

Although we have to agree that credit cards are good for making purchases as and when needed, it also takes time for the transaction to go through and be approved– causing a lack of visibility and control over the transactions. This brings us to the next point.?

Fraud risks and identity theft?

Since credit cards have the inability to track transactions in real-time, which means that if someone steals your card number and starts making purchases on it, you may not know about it for days or even weeks until the statement arrives. This can lead to many problems, from identity theft to fraudulent charges on your credit report.

Overspending

One of the most common problems for teams and employees is overspending. They may spend more than they should, or they spend too much on one item or category and leave others unfunded. And having too much cash going out without control can spiral the company’s cash flow into dangerous waters.?

Slow issuance of additional cards

Let’s say you realise the importance of having more than one card for your business expenses, and you would like to apply for more cards. But just like how tedious it is to cancel a business credit card, it is as tedious to apply for additional credit cards with bank providers.?

There are many factors the bank provider has to consider, such as your credit score, which requires many documents and details in order for your business to qualify. In the end, your employees may be discouraged from the long process involved in the application and skip it entirely.?

So how so can we tackle this pain of having a single credit card shared across the company?

The answer is simple– with the use of virtual corporate cards!

Virtual Corporate Cards for you and your team?

Spenmo allows you to create unlimited virtual cards for your employees and team members within seconds. With an all-in-one payables dashboard, Spenmo provides you with complete visibility over your company spending, where you can see card transactions happening in real-time.?

Afraid of overspending or card identity theft? Have full control and set the tone right with spending limits and pre-assigned budgets, along with the ability to freeze and unfreeze the card anytime and anywhere.?

Our vision is to help you gain visibility, comfort, and control over how, when, and why money is leaving your organisation. Book a demo to find out more about our corporate cards today!

*Disclaimer: This article is for general education purposes only. Spenmo does not make any representation, assurance, or warranty, express or implied, as to its services or products offered in this article. For the avoidance of doubt, Spenmo does not purport to issue any credit cards and issues only business corporate cards, which function as debit cards.