How Divvy integrates a business credit card with seamless expense management

Jul 27, 2021

When running a small business, it’s important to have systems in place that optimize efficiency — with budget management being one of the most essential. Managing cash flow by staying within budgets, creating expense reports and processing reimbursements can be time-consuming (to say the least). And the software to keep everything organized can be an added expense that can also prove tedious.

Now there’s a new product on the market that’s transforming the way small businesses spend and manage their money — and for some organizations, it could be a game changer.

Software and business credit company Divvy was created to be the only expense management tool you’ll need for your small business. The Divvy Business Card works together with its budget management software to make tracking and organizing all of your business expenses easier than ever.

With a tiered system for earning rewards and additional features — like being able to increase or decrease employees’ credit limits instantaneously — Divvy is setting the trend for the next wave of business technology.

The Divvy business card

At the center of the Divvy management system is the no-fee Divvy business card. Like most other business credit cards, business owners can easily apply for the card online — with a relatively quick turnaround for underwriting. In addition, the card is available to any-sized company, including S-corps, C-corps, Limited Liability Companies (LLCs) and even sole proprietorships.

Read more: Divvy Business Credit Card review

With the Divvy business card, the employer decides how to allocate budget based on each employee’s needs, with no limit to the number of employees or budgets a business can have. Individual department owners with their own budgets can even set parameters around what expenses are and aren’t allowed on the card, avoiding the need to decide which transactions are reimbursable at the end of the month.

In addition, managers can increase or decrease the available credit to each member of their respective teams, keep track of minute-by-minute expenses and even categorize expenses — all through the Divvy dashboard. It’s also incredibly easy to increase the limit on any card at any time. Individual cardholders make the request through the dashboard, and a budget owner can approve or deny the request, effective immediately.

A photo of the Divvy Business Card.
(Photo by John Gribben for The Points Guy)

Another cool feature of the Divvy business card is the ability to use virtual credit cards. Businesses could, in theory, assign virtual cards to each vendor instead of using one card for all recurring expenses. Using the virtual cards in this way helps avoid fraudulent transactions by allowing you to cancel any card that becomes compromised due to a data breach — without sacrificing all of the spending power on the account.

Related: 9 reasons to get a business credit card

The expense management software

It’s time to say goodbye to all of your other budgeting and expense report software.

The other half of Divvy — and what makes the card different from other products on the market — is the company’s expense management system. The card automatically syncs with the software, potentially making it the only tool you’ll need to manage budgets, track employees’ spending and reconcile expenses. And the best part is that this happens in real time.

Everything that you can do with the Divvy card can be accomplished without any lag time. Purchases track in real-time and are deducted from the amount available in that particular budget right away. And when you pay your bill, the credit is available to use in seconds. With the ability to see all purchases as soon as they’re made — as opposed to having to wait for it to clear a vendor’s system or to appear on a third-party expense report submitted by an employee — business owners can save time by reconciling their expenses as soon as they happen.

You also have the choice of accessing the management dashboard online or using the Divvy app, putting everything you need right at your fingertips.

Businessman using smart phone and laptop in modern office. Focus on hand holding smart phone
(Photo by Stevica Mrdja/EyeEm/Getty Images)

Just like with the Divvy business card, Divvy’s software is also completely free to use. This even includes an add-on that addresses out-of-pocket expenses that can’t be charged to the card — such as cash tips and mileage. Even these can be tracked through the software at no charge, making it even easier on employees who need reimbursement.

Earning and redeeming rewards

The Divvy business card has a unique way of earning rewards — the more often you pay your bill, the more you earn in select categories. Here’s how those earnings break down:

Expense Category Weekly Payments Semi-monthly payments Monthly payments
Restaurants 7x 4x 2x
Hotels 5x 3x 2x
Recurring software subscriptions 2x 1.5x 1.5x
Everything else 1.5x 1x 1x

As you can see, making weekly payments on your card will earn points at a much higher rate — though you’ll still earn at least 1x on every purchase, even if you’re paying monthly.

When it’s time to redeem your rewards, you have a number of options — including gift cards, cash back, statement credits or travel. Simply log in to your dashboard and choose Redeem Rewards.

Travel rewards are redeemed through Divvy Travel, a booking platform managed by TravelPerks that not only lets you book business travel but also lets you set your own compliance standards and streamline the invoice and payment process as well. Being able to use rewards earned on everyday business spend for business travel and then using the same system to organize those expenses is yet another valuable feature of using Divvy.

Related: How technology is transforming the business travel landscape

Bottom line

Expense management is a vital component to successfully running a small business, but it’s often a time-consuming task at the end of each month. Divvy offers an easier solution to traditional budget management practices through the combination of its business card and expense management software — both of which are available for no fee.

Business owners can distribute their available credit however they like by assigning a custom budget to each card and employee. Budget managers can increase or decrease these amounts and track spending in real-time, all through the Divvy dashboard (accessible both on desktop and through the Divvy app).

The Divvy Business Card also offers rewards based on how often you make payments on your card, and these points can be redeemed in a variety of ways — including for business trips.

If you’re looking for a simpler way to manage your expenses while still earning points, Divvy may be the system that your small business needs.

Featured photo by Nikada/Getty Images