Business debit cards: What they are and how to get one

What is a business debit card?

A business debit card is a payment card that lets you access funds from your business bank account to make purchases and withdraw cash. Business debit cards are linked to your business checking account and draw directly from your available funds. 

As with a personal debit card, you can use a business debit card to make purchases online or in-person and take out cash at ATMs. They’re linked to your business bank account, rather than your personal account, which can help you separate out your finances. 

Business debit cards are popular with business owners who want the convenience of a payment card without making all their purchases on a credit card. You can also share business debit cards with employees that have spending limits or other restrictions. 

Small business owners typically rely on a variety of financial products to run their business and manage cash flow including business debit cards, bank accounts, credit cards, and small business loans.

How business debit cards work

Business debit cards operate through major payment networks like Visa and Mastercard. When you make a purchase, the funds will be withdrawn immediately from your business checking account, assuming sufficient funds are available.

Although your bank deducts the funds from your checking account right away, the transaction may take a few days to settle depending on the merchant and payment processor. 

Many merchants let you complete transactions by entering your PIN or signing your name. When you’re using a business debit card online, you usually don’t have to enter your PIN. 

Business debit cards vs. business credit cards

Both business debit cards and business credit cards can be useful for everyday transactions, but they work differently. Here’s a comparison of business debit cards vs. credit cards: 

When to use a business debit card

A business debit card may be the right fit if you: 

• Want to avoid taking on debt 
• Prefer strict budgeting and spending only from your available funds 
• Need straightforward expense tracking
• Want to avoid interest charges 
• Run a cash-heavy business

When to use a business credit card

On the other hand, a small business credit card could make more sense if you:

• Want to build business credit
• Can earn rewards like travel points or cash back 
• Have large expenses that require financing 
• Need short-term cash flow flexibility 
• Prefer stronger purchase and fraud protections 

You don’t necessarily have to choose one or the other. Many businesses use a debit card for day-to-day spending and a credit card for larger purchases. 

How to get a business debit card

Here's how to get a business debit card in a few simple steps. 

Open a business checking account

To get a business debit card, you’ll need a business checking account. You typically need to provide your: 

• Employer identification number (EIN) or Social Security number 
• Business formation documents
• Ownership agreement 
• Government-issued ID
• Business address and contact information

Most financial institutions will automatically issue a business debit card when you open a business checking account.

Choose your financial institution

Before selecting a business checking account, it’s worth shopping around and comparing your options. These include: 

• Traditional banks: Banks often give you branch access and easy cash deposits, though they may charge higher fees. 
• Credit unions: Credit unions are member-owned institutions that often have a community focus and strong customer service. They may offer competitive rates and fees. 
• Online business banks: Online banks may offer low rates and fees, fast account setup, and strong digital tools, but you won’t have the option of in-person banking and might have more limited options for cash deposits. 

Consider which features are most important to you and your business so you can select the type of institution that best fits your needs. 

Application process

You can often apply online by filling out some forms and uploading your documentation. You might get approved the same day you apply or within a few business days, depending on the institution. Some banks can issue a virtual debit card immediately, while the physical card should arrive within five to 10 business days. 

Types of business debit cards

While most business debit cards have a straightforward structure, there are a few different kinds available.

Standard business debit cards

Standard business debit cards let you make purchases, take out cash at ATMs, pay your bills, and complete online transactions. You can use them for almost any payments or cash withdrawals as long as you have enough funds in your checking account. 

Business ATM cards

Business ATM cards let you take out or deposit cash at ATMs, as well as check your balance. However, they may not let you make point-of-sale purchases, so they’re a more limited option. 

Business deposit cards

You may also come across deposit-only cards. Some business owners offer these to employees so they can make deposits but won’t have spending access. 

Rewards business debit cards

It’s less common to earn rewards with debit cards than credit cards, but some business debit cards offer cash back or other incentives.  

Employee business debit cards

Some business accounts also let you order cards for employees with customized controls. These may include spending limits, merchant restrictions, transaction alerts, or real-time monitoring to ensure employees don’t spend past certain caps. 

What to look for in a business debit card

Most financial institutions will automatically issue a debit card for business when you open an account. So your choice isn’t typically, “Which business debit card is best?” but rather which business checking account is best for your business. The debit card is an extension of the account. 

Here are some features that can guide your decision. 

Fees and costs

Some fees to watch out for include: 

• Monthly maintenance fees
• Wire transfer fees
• ATM fees
• Overdraft or NSF fees
• Cash handling fees
• Excess transaction fees
• Statement fees
• Annual fees 

Even free business checking accounts may have some fees associated with them, but there may be ways to bypass them. For example, you may be able to avoid a monthly maintenance fee by maintaining a minimum average daily balance. 

Or you may be able to add an overdraft line of credit to avoid bouncing checks and incurring non-sufficient funds (NSF or overdraft) fees, which can cost as much as $35 per transaction. Always read the fine print so you’re not surprised by unexpected fees. 

Transaction limits and requirements

Find out if there are any transaction limits, such as:

• Daily purchase limits
• ATM withdrawal limits
• Monthly transaction caps
• ACH transfer limits

Make sure the limits work for your business's spending needs. 

ATM access and cash handling

You’ll also want to find out about ATM access and how to withdraw and deposit cash. If withdrawing cash is a priority, make sure the ATM network is accessible and convenient. Otherwise you may wind up paying expensive ATM fees for out-of-network transactions. Some financial institutions will reimburse ATM fees up to a limit. 

If your business is heavily dependent on cash sales, you may want to choose a financial institution with a convenient branch for making deposits. You’ll also need to find out the fee schedule for cash deposits. Cash handling fees may apply to transactions above a certain limit.

Digital and mobile features

The ability to access online banking functions should be a given, but if you plan to frequently access your account from your mobile device, you’ll want to check out the mobile app to make sure it has the functionality you need. If you want to deposit checks without a trip to the bank, make sure mobile deposit is available as well. 

Some other useful features include instant notifications and spending analytics to help you monitor your spending and stick to a budget. 

Integration with accounting software

Another consideration is whether the account will integrate with your accounting software if you use QuickBooks, Xero, or another platform. Being able to easily import transactions can make it easier for you or your bookkeeper to keep your accounts up to date. 

Interest rates

Interest rates are often low on deposit accounts, but something may be better than nothing. If you expect to maintain decent-sized balances you may want to check out the Annual Percentage Yield (APY) and compare it to higher-yield options. 

Employee card controls

If you’d like to share debit cards with employees, you may want to look for features like: 

• Individual spending limits
• Department-based controls
• Merchant category restrictions 
• Real-time transaction monitoring 

Compare business debit cards

The best business debit card largely depends on your business checking account, as cards are typically issued automatically when you open an account. However, here are a few cards worth checking out. 

American Express Business Checking: Best for startups and new businesses

The American Express Business Checking account has no monthly maintenance fees or minimum balance requirements, making it a good fit for startups and new businesses. You can also earn 1.30% APY on balances up to $500,000 (variable; subject to change) and rewards points on your debit card purchases. You can use your debit card to make fee-free withdrawals at more than 70,000 Allpoint^® and MoneyPass^® ATM locations. One caveat: You must have an eligible American Express card to apply for an Amex business checking account.

Chase Business Checking: Best for cash-heavy businesses

Chase offers multiple business checking accounts, each of which lets you deposit cash in-person with a banker or at a Chase ATM. Each account comes with monthly maintenance fees, but you can waive the fee by maintaining a minimum balance in your account. You can also request associate debit and employee deposit cards. 

Bluevine: Best for online/digital businesses

Bluevine is an online business banking platform that offers virtual and physical cards for your main account and subaccounts. It integrates with various accounting, payment processing, and financial software. Plus, it offers a slew of mobile features, including mobile check deposit and automated bill pay. Eligible customers can earn 1.3% to 3.0% annual percentage yield (APY) on checking balances for meeting certain criteria (variable; subject to change.)

Relay: Best for businesses with multiple employees

Relay is another digital-first banking platform that offers spending cards for employees with visibility into every transaction. You can set up automated receipt matching and spend controls to prevent overspending. You can also issue cards that connect to specific Relay accounts, such as marketing, operations, or travel accounts. 

Novo: Best free business debit card

Novo is an online business banking platform with no hidden fees. With Novo, you don't have to worry about monthly fees, minimum balance requirements, or overdraft fees. You'll also get access to free invoicing and budgeting tools. Your account comes with virtual and physical business debit cards for business owners and employees. 

Business debit card features to consider

It’s generally best to choose the best business checking account for your business, and the debit card will come from that. However, there are some features you may want to prioritize. 

Virtual account numbers 

With a virtual account number, you can create unique account numbers that can be used with specific merchants or to pay for subscription services.

Subaccounts and budgeting tools 

Instead of having to open multiple bank accounts for budgeting purposes, you can use these subaccounts to set aside funds for taxes or specific spending goals.

Spending controls and limits 

Find out whether you can restrict purchases by employees to certain types of spending or set spending limits. 

Rewards programs 

Credit cards typically offer higher rewards than debit cards, but some debit cards offer rewards programs. Some larger financial institutions may offer more than one business debit card program. One card might offer rewards, for example, while another may be more of a no-frills card. 

Welcome bonuses and promotions

Some issuers have welcome offers for new customers. However, since it’s a hassle to open a new bank account, choose your account for the long-term and not just a short-term bonus. 

Business debit card security and fraud protection

Business debit cards don’t typically have as robust fraud protections as credit cards, but they do offer some security. 

Zero liability protections 

Debit cards may come with zero liability policies that protect you from unauthorized transactions. You’ll need to report the transactions promptly. Policies can vary by issuer, so make sure to review your account agreement.

Debit vs. credit card fraud protection 

Credit cards generally offer stronger fraud protection, including a federal cap of $50 for unauthorized transactions. Under the Electronic Fund Transfer Act (EFTA), debit card liability depends on when the loss is reported: $0 if reported before unauthorized use, up to $50 if reported within two business days, up to $500 if reported between two and 60 business days, and unlimited liability if reported after 60 days. You may also see the amount withdrawn temporarily from your bank account while the issue is under investigation. 

Employee card liability 

If you give cards to employees, you are responsible for the charges they make. Just because you don’t approve of purchases an employee made with the card doesn’t mean they qualify as unauthorized purchases. 

Best practices for security

There are several steps you can take to boost your account security, including: 

• Enabling and reviewing transaction alerts
• Looking over your account activity regularly 
• Using strong passwords 
• Limiting employee access 
• Locking or freezing any lost cards right away 

FDIC insurance

Business checking accounts may be covered by Federal Deposit Insurance Corporation insurance if the financial institution is a member of the FDIC. Business checking accounts at FDIC-member institutions are insured up to $250,000 per depositor, per institution, per ownership category.

Common business debit card fees

There are ways to avoid or at least minimize fees on your business checking account. These include: 

• Choosing a no-fee checking account 
• Meeting requirements for fee waivers, such as maintaining a minimum balance in your account 
• Disabling overdraft services to avoid incurring overdraft fees 
• Using in-network ATMs, or choosing an account that offers out-of-network ATM fee reimbursement 

Opening a business bank account for your debit card

Opening a business bank account is a critical step for separating your business and personal finances. 

What you need to open a business bank account

Opening a business bank account requires more documentation than opening a personal account. Depending on the bank, you may have to provide: 

• Government-issued ID
• EIN or Social Security number
• Business formation documents
• Business address
• Ownership information
• Business license, if applicable 

Choosing between banks, credit unions, and online providers

Shop around with different types of financial institutions to find the best fit. Here are some typical pros and cons of banks, credit unions, and online providers.

How long does it take to get a business debit card?

Some financial institutions can approve your account the same day you apply, while others take a few business days. You may get immediate access to a virtual card you can start using right away. The bank will also mail you a physical card, which should arrive in five to 10 business days. 

Using your business debit card

Once you have your business debit card, consider some best practices for making the most of it. 

Best practices for business debit card use

Some best practices include: 

• Using your card only for business expenses, not personal ones
• Reviewing your transactions regularly, and keeping an eye out for any signs of fraud 
• Maintaining sufficient balances in your account so you don’t overdraw 
• Enabling alerts so you get real-time notifications of any low balances or suspicious activity
• Keeping receipts of your transactions for bookkeeping 

Tracking business debit card expenses

Using a business debit card can make it easier to track your expenses and avoid spending more than you have in your account. You may have the option of syncing your debit card with your accounting software, which makes it easier to track and categorize transactions and keep records of your business expenses for tax purposes. 

Setting up employee cards

Before you share debit cards with your employees, make sure to establish spending policies with your team. You might be able to set transaction and spending limits individually or by department. Monitor spending activity across all your business debit cards, and act quickly to freeze cards or remove access if you spot any issues. 

Alternatives to business debit cards

As a small business owner, there are other card types you can use to make purchases and manage cash flow. Some alternatives to business debit cards include: 

• Business credit cards: These let you borrow against a credit line, earn rewards, and build credit as long as you pay your bills on time. If you pay off your balance in full each month, you can avoid interest charges. 
• Prepaid cards: With these cards, you load money in advance, so you or your employees can’t spend past the prepaid amount. 
• Corporate cards: These are designed for larger businesses and often include more advanced expense management and reporting features. 

Comparing all these options can help you find the best financial tools for your small business. Many business owners use a combination of products and financing options to hit their goals and meet their spending needs. 

Frequently asked questions