Charge, credit, debit and prepaid expense cards: how they differ
The four kinds of company card behind expense platforms, and what each means for repayment, interest, limits and who holds your money.
Quick answer
A charge card must be paid in full each cycle, a credit card lets you carry a balance with interest, a debit card spends money already in an account, and a prepaid card spends a balance you load in advance. Most US expense platforms issue charge cards backed by a bank, while UK platforms more often issue debit or prepaid cards on e-money.
Key points
- A charge card is paid in full each period, so no interest builds up, but the business needs cash to clear it.
- A credit card allows a carried balance, with interest charged on it.
- Debit and prepaid cards spend money already held, so the limit is the balance.
- Mercury IO and Ramp describe charge cards; Payhawk issues debit and credit cards.
- UK expense cards are usually e-money: safeguarded, not FSCS-protected.
- The card type affects your credit exposure more than the software does.
Every expense platform runs on a card, and the kind of card decides when the money leaves your account, whether interest is possible, and who holds the money in the meantime.
The four types
| Type | Where the money comes from | Repayment | Interest |
|---|---|---|---|
| Charge card | Credit, settled each cycle | In full every period | None if paid on time |
| Credit card | A credit line | Minimum or in full | On any carried balance |
| Debit card | Your account balance | None, spends directly | None |
| Prepaid card | A balance you load | None | None |
Charge cards: the US default
US platforms mostly issue charge cards. Mercury's IO page says customers must "pay off your full IO balance every pay period", with new customers on daily repayment until balances reach $15,000. Ramp's pricing page describes a "corporate liability charge card". Because the balance clears each cycle, there is no interest, but the business must have the cash to settle.
Debit, credit and prepaid in the UK
UK platforms more often spend money you already hold. Payhawk issues debit cards in several currencies and also mentions credit cards. With debit and prepaid cards, the limit is the balance, so there is no credit decision and nothing to repay.
Who holds the money
In the US, charge cards are issued by banks such as Patriot Bank (Mercury IO) or Celtic Bank (Ramp). In the UK, money loaded to expense cards is usually e-money. Pleo Financial Services UK is an e-money institution. E-money must be safeguarded, but the FSCS does not cover it, as Mettle's fee page puts it for e-money institutions generally. Our guide to FDIC and FSCS protection explains more.
Fees that follow the card type
- Foreign spending. Rho publishes 1% and Pleo 1.49% to 2.00%. Many others do not publish a rate.
- Cash withdrawals. Pleo charges £5 on Start and nothing on higher plans.
- Interest. Only on credit cards with a carried balance.
Comparing platforms
Our US expense card comparison and UK comparison rank platforms on published costs. The expense card cost calculator lets you set team size, spend and foreign share.
Try the numbers
Expense card cost calculator, with a page for each market in its own currency and at its own published prices.
The comparisons
Best expense cards for small businesses in the UK (2026)
Four UK expense card platforms compared on per-user and platform pricing, card FX fees and who issues the cards.
US editionBest expense cards for small businesses in the US (2026)
Five expense card platforms compared on per-user pricing, foreign exchange fees and published cashback, for a five-person team.
Questions
Do expense cards affect my business credit?
It depends on the card type and the provider’s reporting. A charge or credit card extends credit, so the provider assesses your business before setting a limit. Debit and prepaid cards spend money you already hold, so they usually involve no credit decision. Check each provider’s terms for how it reports.
Can a charge card have no preset spending limit?
Many charge cards set limits based on your balances and cash flow rather than a fixed credit line. Mercury, for example, says new IO customers start on daily repayment and can move to 30-day terms once balances reach $15,000. The business still has to repay the full amount each cycle.
Is a prepaid company card safer?
It limits spending to what you load, which controls overspending, and there is nothing to repay. But in the UK the loaded money is usually e-money, which the issuer must safeguard but the FSCS does not cover. Keep large balances in a bank account and top up the cards as needed.
Do employees need to pay anything back?
No, not for business spending. On every card type the company is liable, not the employee, unless the card agreement says otherwise. Employees submit receipts so the business can account for the spending. Personal spending on a company card is usually a matter for your expense policy.
Which card type earns cashback?
Cashback is usually funded by the fee merchants pay on card transactions, so it appears on charge and credit cards more than on debit or prepaid ones. Mercury IO publishes 1.5% on all spend, Rho mentions up to 2% under its Platinum terms, and Spendesk mentions cashback from 1% for eligible clients.