Paper Business Cards vs. Digital Business Cards – Pros & Cons

Today, sustainability is becoming increasingly important for companies and consumers across all industries. According to research, 62% of executives consider a sustainability strategy necessary to be competitive, while 75% of consumers take corporate sustainability responsibility (CSR) into account when making purchases.

The use of trees in the production of mass paper products such as books, writing paper, newsprint, business cards among other commodities has been a widely debated topic over the years. Companies and consumers are becoming more open to paper alternatives for books, newspapers, and business cards.

“A business card legitimizes who you are, conveys the services you offer, and provides a means for customers to remember you after a first meeting while providing contact information.”

We live in a digital age where we engage with people online. Our social media accounts reflect our brand or beliefs. We use social media to vlog, share content driven videos, and network. Networking on social media has become as common as brushing your teeth when you first get out the bed (I hope). LinkedIn is one of the world’s top networking sites for companies and business professionals. YouTube is widely used to drive web traffic, promote products, and generate leads through video. Instagram allows users to immerse themselves in the lives of others through captivating photos. Facebook is great for increasing your brand awareness and showcasing your brand’s personality. When asking the question if we really need paper business cards to network, plainly, the answer is no. However, they are still a valuable networking tool.

A business card legitimizes who you are, conveys the services you offer, and provides a means for customers to remember you after a first meeting while providing contact information. Great first impressions dramatically increase your chances of future conversations and help build strong business relationships.

Let’s look at the Pros & Cons of using paper business cards versus digital business cards.

Paper Business Cards

Pros

• Paper business cards are an excellent way to grab a person’s attention, expose your brand, and make great first impressions.
• Paper cards are easy to share when networking with people face-to-face.
• Paper cards are a great way to establish a personal connection – to build strong, meaningful relationships.
• People, in general, are accustomed to receiving and exchanging business cards when networking. Also, paper business cards are highly regarded in countries such as China and Japan. Proper etiquette in China, requires you to bow, the counterpart extends his/her business card to you with both hands, you study their card with interest, then you bow and extend your business card with both hands.
• They are relatively inexpensive to print.

Cons

• For a well-designed business card, you may have to seek the services of a professional graphic designer. The average cost for a graphic designer ranges from $50 to $70 per hour.
• If you change your phone number, email address, web address or any of your contact information, you must reprint an entirely new set of cards.
• Paper business cards can accumulate relatively quickly, take up space, and can become overwhelming.
• For Contact Management, a business card scanner is needed to export people’s contact information into a CRM or online contact management platform.
• Research has shown, 88% of business cards handed out will be thrown out in less than a week.
• If your business cards are shipped, you will have to wait for them to arrive which can be inconvenient.
• Paper business cards are not friendly to the environment.

Digital Business Cards

Pros

• A digital business card differentiates you from your competitors.
• Digital cards are easy to share and most applications provide various ways to share your digital cards with people via text (SMS), email, social media and more.
• Digital business cards allow you to attach videos and external links (surveys, sign up forms, subscription lists, etc.), to make great first impressions, share contact information, and advertise services in a more engaging way.
• Digital business cards conveniently allow you to store all your contact information, web URLs and social media accounts in one place. If your contact information changes at any time, that information is automatically updated in the digital card, relieving the pain of having to reprint an entirely new set of cards.
• Digital business card apps are great for Contact Management. Some apps have an optical character reader (OCR) or business card scanner – allowing the ability to scan a business card and convert contact information into digital text which can then be saved inside the app or sync with a CRM program.
• Digital cards are easy to customize to your brand. If you choose to change the color or update your contact details, you don’t have to wait for a new set of cards to arrive in the mail.
• Some digital card applications are integrated with calendar systems such as Microsoft Outlook or Google Calendars. These integrations allow you to sync your calendar accounts and create reminder alerts or schedule follow-up meetings from the app.
• Digital cards are an eco-friendly alternative to paper business cards.

Cons

• Not all people and cultures are accustomed to receiving a digital business card. For some, the exchange may be inappropriate, or the recipient may not understand how to access your contact information or save it to their phone.
• Sharing a digital business card is not as personable as exchanging a paper business card, due to you having to enter the person’s phone number or email address inside the app to send them your card.
• If your digital business card application is buggy, it can cause issues when you attempt to share your digital card with others. If you choose a digital business card app, be sure to do your research, read customer reviews, and make sure the company and product are reputable.
• Depending on the application, the learning curve to properly navigating the system, understanding the features, and creating a digital business card may be high or not user-friendly. Make sure the digital business card application you choose is user-friendly, easy to navigate, and provides a user guide with clearly defined features.

The Verdict

When it comes to networking, making great first impressions, and exposing your brand; paper business cards and digital business cards are both excellent options – with their own set of advantages and disadvantages. Ultimately, it comes down to what you feel most comfortable using when networking. In some instances, a paper business card is ideal, while in other situations a digital business card is more suited. The impact of technology has revolutionized the way we interact and engage with people; both online and in-person. Do your research (paper business cards, digital business cards, or a combination of both) and choose an option you feel will help you achieve your networking goals.

If you want to learn more about the advantages of using a digital business card, read our blog Why You Need a Digital Business Card.

If you’re a small business owner, you’ve probably received numerous offers and applications for a small business credit card. It can be a convenient way to increase your company’s purchasing power.

Small business credit cards provide business owners with easy access to a revolving line of credit with a set credit limit in order to make purchases and withdraw cash. Like a consumer credit card, a small business card carries an interest charge if the balance is not repaid in full each billing cycle.

You may be able to get a credit card through your bank or apply online. You should compare card terms and features by consulting credit card reviews of individual providers. A business card can be a convenient way to quickly access financing for short-term needs and increase your company’s purchasing power. It is often marketed as an attractive alternative to a traditional line of credit. Like any source of financing, a business credit card comes at a cost and must be carefully managed.

Key Takeaways

• A business credit card gives small business owners easy access to a revolving line of credit with a set limit.
• It has an interest charge if the balance is not repaid in full each business cycle.
• Said interest rate is usually much higher than the rate on a small business loan.
• A small business owner decides which employees may have a business credit card.

How a Business Credit Card Works

Without a good system in place, it can be difficult to keep track of—and keep a handle on—credit card spending, which ultimately affects your bottom line. Certain strategies can be utilized to ensure good credit card practices. 

Ensuring Accountability

“The most important step a small business can take to make sure credit cards are used effectively is to set up a bomb-proof accountability system,” says John Burton, founding partner of Moonshadow Leadership Solutions in Bryson City, N.C.

"This could mean everything from preapproval of all credit card spending to rigorous requiring of receipts to pulling credit cards from those who do not report completely and on time with receipts,” says Burton. Have a system in place before the first credit card arrives and, Burton says, be consistent, rigorous, and fair while tolerating no exceptions. 

Deciding Who Receives a Card

Burton acknowledges the challenges employers may face in deciding who gets a credit card. “I've seen businesses that lost control of credit card spending by issuing too many cards to too many people and thinking that all-important officers and travelers needed the convenience of a company credit card,” says Burton.

While giving everyone a credit card might seem like the right or easy thing to do, it can lead to a “dysfunctional, expensive system and a serious lack of control and accountability,” he explains.

Use alternatives and establish rules. “Many companies, especially with salespeople, reimburse for company spending on personal credit cards with excellent accountability—i.e., no receipt, no reimbursement,” says Burton.

It is helpful, however, to have clear rules regarding who gets a card, whether it’s based on seniority, position, or other factors. This can help avoid confusion and mitigate bad feelings from employees who would like a card but are not eligible.

Setting Credit Card Limits

Every business should have clear policies about spending, including which expenses can be put on cards, how much employees can spend, and how often they can use their cards. It’s important to put the policy in writing and have every employee who is issued a card read and sign it. After they do, give each cardholder a copy to use for reference.

Depending on the business card, you may be able to set up restrictions that limit transactions to a certain dollar amount, spending category, and even certain days and times. With some cards, you can set up individual restrictions for each employee.

For example, you may limit one employee to $50 a day any day of the week for gas purchases, while limiting another to $100 for gas and $50 for meals each day, but only on business days.

Being Watchful of Card Activity

Many business credit cards allow you to set up activity alerts that arrive as text or email messages. The alerts can be set up to notify you each time a transaction takes place or only if an employee uses (or tries to use) a card in an unapproved manner.

Using a business credit card for large purchases that can’t be fully paid for before the interest charges kick in can prove a very expensive proposition.

You can also take advantage of online and mobile banking to view up-to-the-minute account activity. Your accounting department should review each statement to make sure each line item is a charge you authorized.

Using the Card Wisely

It’s important to know when a business should use credit. It’s not always the best choice, especially for large expenditures that can’t be paid in full before interest kicks in. Even though it takes extra effort to secure a loan from a bank or other lending institution, it often makes financial sense to do so, as the interest rate on credit cards is typically much higher than for such secured debt instruments.

It's also possible that a large purchase—or a couple of large expenditures—can max out your credit card and leave you without a source of funds at all.

Pros

• Easier to qualify for a card than for a loan

• Convenience

• Provides a financial cushion

• Useful online

• Helps with bookkeeping

• Rewards and incentives

• Tool to build credit

Cons

• More expensive than a loan or credit line

• Personal legal liability

• Security issues

• Less protection than consumer credit cards offer

• Fluctuating interest rates

Advantages and Disadvantages of a Business Credit Card

Advantages

Along with providing the necessary cash flow to help maintain and build your business, credit cards can offer these advantages:

• Easier Qualification—It can be easier for business owners who do not have a well-established credit history to qualify for a revolving line of credit with a credit card, especially if it’s secured, rather than a traditional line of credit or bank loan.
• Convenience—Credit cards are the ultimate financing convenience. Business owners can access funds for purchases or cash withdrawal much more quickly and easily than having to find cash and/or use a checkbook.
• Financial Cushion—A credit card can provide business owners with a much-needed financial cushion when accounts receivable are behind or sales are slow and the business is short on cash.
• Online Ease—Increasingly, business owners make purchases and do business online with vendors, contractors, and suppliers. Using a credit card makes online transactions easier.
• Bookkeeping Assistance—In addition to receiving a monthly statement, most cards provide small business cardholders with online record-keeping tools to manage their accounts, including a year-end account summary, which can help a bookkeeper track, categorize, and manage expenses. It can simplify bookkeeping, help when using outside professionals to navigate an audit and pay taxes, and provide an easy way to monitor employee spending.
• Rewards and Incentives—Many cards offer business owners rewards programs—including airline miles and shopping discounts—for using the card. Some also provide cash-back incentives, repaying cardholders a percentage of their purchases. In short, it can pay to choose carefully, so that you receive the best rewards card possible for your needs.
• A Tool to Build Credit—Responsibly using a small business credit card—which means paying the bill on time, paying more than the minimum due, and not going over the credit limit (which can trigger an over-limit fee)—can be an easy way to build up a positive credit report for your business. That, in turn, can help you be more likely to qualify for a loan or line of credit, and at a potentially lower interest rate, in the future. Keep in mind that irresponsible use of the card can damage your credit, however.

Disadvantages

Before rushing to apply for a business credit card, it’s important to consider these potential downsides:

• More Expensive—The convenience and ease of business credit cards come at a price, as they typically charge a much higher interest rate than a small business loan or fixed line of credit offered by a bank. That interest can add up quickly if card activity is not repaid on time and in full each month. In addition—without a system to regularly and carefully monitor card usage—it can be easy to accidentally overextend your firm financially by going over its credit limit or incurring late fees and penalties. 
• Personal Legal Liability—Many cards require a personal-liability agreement (your personal security) to repay debt. This means that any late or missed payment could result in a negative personal credit report and the inability to personally borrow money. You also may have to pay more with a higher interest rate.
• Security Issues—Security measures should be created to ensure that cards or card information are not stolen by employees, vendors, contractors, and others who come through the office space. It’s also important to make sure that employees who are authorized to use the card do not use them for personal spending, and that they take precautions when making online transactions to avoid being hacked.
• Less Protection—Small business credit cards often do not carry the same protection as consumer credit cards. For example, many cards will not provide the same level of assured services when disputing billing errors or needing to make merchandise returns. Be sure to review the level of protection and services a card offers before applying.
• Fluctuating Interest Rates—Unlike with a loan or fixed line of credit, the company that issues your credit card can reset its interest rate depending on how you use and manage your account. As such, it can pay to be aware of how rates work and can change.

Can I Use an EIN to Obtain a Credit Card?

An employee identification number (EIN) is a tax number that the IRS assigns to your business. You can use it to apply for a small business credit card; however, you will most likely also have to provide your Social Security Number to obtain the card.

Can You Get a Credit Card With an LLC?

To get a credit card with an LLC you must be the owner of the LLC in order to apply for and receive the credit card. Not every employee is able to open a credit card. Non-owners may use the credit card, but they must be authorized by the LLC to be able to sign for purchases.

What Is a Corporate Credit Card?

A corporate credit card is a credit card that a business issues to employees. It works in the same manner as a personal credit card but is only meant to be used for business-related expenses, such as business travel, business dinners, and other client-associated expenses. The corporate credit card allows for these expenses to be made so that the employee does not have to pay out-of-pocket and wait to be reimbursed.

The Bottom Line

A business credit card comes with many benefits, such as ease of use, easier to obtain than a loan, a financial cushion, and a way to separate business expenses from personal credit card expenses. Though there are benefits, a the card should be used with caution, as interest rates on cards are high, more so than a loan, and business credit cards have less security than personal credit cards.