Many companies apply for a business credit card for their employees to use in performing their everyday tasks. Generally, the company makes an application at the bank. After the credit card is activated, the employee swipes their credit card, and the bill will be paid directly by the company, as opposed to by the employee himself. In recent years, however, many banks, such as HSBC, have launched commercial debit cards, which are similar in function to credit cards, but require bank deposits to be used. Reap bridges the difference between commercial debit cards and credit cards. This comparison between the HSBC Business Mastercard® and the Reap Card highlights the difference between the two.
HSBC Business Mastercard® vs Reap Card:
| HSBC Business Mastercard® | Reap Card | |
|---|---|---|
| How to apply | Requires existing HSBC Business Internet Banking / integrated account | No requirement to have an existing account, simply connect to your online bank account |
| ATM | Withdrawal supported | Withdrawal supported (as cash overdraft) |
| Expense management |
- Set daily and monthly spending limits
- Set transaction limits |
- Set daily and monthly spending limits
- Set transaction limits - Instantaneous sync to compatible accounting software - Automatic categorisation of expenses by type - Real-time spend analysis |
| Managing access rights |
Temporarily freeze or restore debit card
Create virtual cards Free unlimited supplementary cards Choice of physical or virtual cards |
Temporarily freeze or restore debit card
Create virtual cards Free unlimited supplementary cards Choice of physical or virtual cards |
| User discount/rebate |
Microsoft/DiningConcepts/FreightAmigo
Unlimited 0.5% immediate cash rebate |
2% cashback on all digital business spendings* $1,250 credit on Shopify |
| Electronic wallet |
Supports Apple Pay/Google Pay
| Coming soon |
| Handling fee |
Non-HSBC Group ATM:
HKD 25 per local transaction HKD 40 per overseas transaction No withdrawal fee at local HSBC ATM No handling fee for foreign currency transactions | No handling fees |
| Annual fees | No annual fees | No annual fees |
Key differences
1. Debit card vs credit card
HSBC Business Mastercard- as its name implies, it is a withdrawal card jointly launched by MasterCard and HSBC, allowing merchants to withdraw amounts directly from a specific account without using a credit card, making full use of the amount in the account. For business owners, this card may feel more secure", as it allows business owners to control fund flows for expenses, making expense management more convenient.
However, according to Understanding SMEs in Hong Kong, a joint survey conducted by Reap and VISA in 2021, the biggest issue for 80% of SMEs is cash flow, a highly important factor driving enterprise growth. Since debit cards require users to make cash deposits, they may not be the most suitable for SMEs, who may not have sufficient cash and lose the opportunity for sustainable development.
2. How to apply
Prerequisites for applying for the HSBC Business Mastercard is to be an existing HSBC Business Internet Banking user or have an HSBC integrated account. However, Reap understands that cash flow and credit is what is needed, not a complex application procedure. Therefore, to apply for the Reap Card, you do not need to apply for any other business account, but simply need to register on the Reap website.
3. Expense management
Both cards have the basic functions of virtual cards, including setting daily and monthly spend limits of supplementary cards and setting transaction limits. Using HSBC Business Mastercard, users can view business expenses and card transactions through HSBC Business Internet Banking and HSBC HK Business Express mobile applications.
On top of the above functions, the Reap Card has superior spend management tools, serving as a one-stop expense management tool:
- Automatic expense classification: understand the company's expense classification, so that you can allocate funds more effectively.
- Unlimited free supplementary cards
- Real-time spend analysis: see expense direction at a glance and in-depth insights immediately.
- Compatible accounting software: integrate with Xero accounting software (and accounting software to be launched soon), so that you can eliminate time spent on manual accounting.
4. User benefits
Using the Reap Card with Reap Pay allows you to pay various company expenses (salaries, rents, suppliers and goods) to any recipient who does not accept credit cards, giving you the flexibility to use the credit amount, explore potential cash flow, and replace cash expenses with credit cards, so that you can save cash for greater business opportunities, enabling your business to go further. Besides, you can enjoy unlimited 2% cashback on all digital spendings, including online advertisement placement, subscriptions and delivery services, turning everyday business spending to rewards.
According to HSBC's official website, users of the HSBC Business Mastercard can only benefit from Microsoft, DiningConcepts and FreightAmigo. In contrast, the Reap Card offers a wider range of benefits more appropriate for enterprises, including discounts on Google Workspace, Office 365, WeWork, GoDaddy and other companies, as well as $1,250 credit on Shopify and cashback on Google Ads.
5. Security
The HSBC Business Mastercard was launched by the reputable HSBC and Mastercard business card network is secure. At the same time, the Reap Card is also a business card on the VISA network, so you can also enjoy the security and benefits of a VISA business card. Further, the physical Reap Card does not show a credit card number, making payments even safer.
Summary
From the above comparison, it can be seen that although the function of HSBC Business Mastercard is similar to that of the Reap Card, the nature of debit cards restricts SMEs from obtaining real-time cash flow and solving the problem of financial turnover. SMEs need cash on hand to meet their expenses, so debit cards may not be the best solution for SMEs. In terms of functions, although the basic functions of the two cards are the same, the advanced expenditure management function of the Reap Card allows business owners to comprehensively and flexibly control the company's finances with a one-stop financial management tool, freeing up time spent on manual processes for furthering the company's business opportunities. To learn more about the Reap Card, please click here to make an appointment with our team!
The above is only Reap's true and honest opinion as of the publication date. Please assess the product features of each company on your own.
The 2% cash rebate promotion has ended on 31 January 2023.
