The Problem With Card-First Expense Tools (Ramp, Brex, Expensify Card)

Introduction to the Card-First Conundrum

And. you're already losing money every week you wait to switch to an expense software without corporate card requirement. 4+ hours per week, to be exact, is what sales managers like you waste on receipt approvals. That's $10,900 per year. But. this isn't just about time - it's about the inflexibility of card-first tools like Ramp, Brex, and Expensify Card.

But. the popularity of card-first expense tools is undeniable. They offer a convenient, streamlined way to track and manage expenses. However, this convenience comes at a cost. For businesses with existing banking relationships, card-first tools can be a major hassle. Changing cards means changing your banking relationship, which can be a daunting task. And. this is where the problem lies - card-first tools don't work for everyone.

For example, 75% of small to medium-sized businesses in Japan, where we have a strong market focus, already have established banking relationships. They don't need a new corporate card. They need an expense software without corporate card requirement. Something that works with their existing setup. But. card-first tools like Expensify Card, Ramp, and Brex require you to use their corporate card, which can be a major obstacle for these businesses.

The numbers are clear: 40% of businesses that switch to a new corporate card experience disruptions to their accounting and banking processes. And. this can lead to even more wasted time and money. So, who do card-first tools work for? The answer is simple: VC-funded startups that don't have existing banking relationships. But. this leaves a significant gap in coverage for businesses that don't fit this mold.

The coverage gap is real. Non-card expenses, like cash purchases or invoices, are often left out of the equation. And. this is where card-agnostic alternatives come in. But. before we dive into the benefits of these alternatives, let's take a closer look at the problems with card-first tools. The lock-in problem, interchange fee dependency, and lack of flexibility are just a few of the issues that make card-first tools less than ideal for many businesses.

The Lock-In Problem: A Deeper Dive

And. this is where we'll start to explore the problems with card-first tools in more detail. The lock-in problem is just the beginning. But. for now, let's just say that you don't need a corporate card to manage your expenses effectively. The right tool can make all the difference. So, let's move on to the next section and explore the lock-in problem in more detail.

The Lock-in Problem: Changing Cards Means Changing Your Banking Relationship

And. you're likely aware that switching corporate cards can be a monumental task. But. the real issue is that card-first expense tools like Ramp, Brex, and Expensify Card are designed to lock you into their ecosystem. This means that if you want to change cards, you'll have to change your entire banking relationship, which can be a 3-6 month process. For example, a company with 20 employees can expect to spend around 40 hours just setting up a new corporate card program.

The problem is that this lock-in mentality is not conducive to the dynamic needs of growing businesses. But. the card-first model is particularly well-suited for VC-funded startups, where the primary goal is to scale quickly and burn through cash. In fact, 75% of VC-funded startups use corporate cards as their primary expense management tool. However, this model falls short for businesses with existing banking relationships, where the idea of switching cards is not only impractical but also unnecessary.

Who Card-First Tools Don't Work For

And. let's be clear: card-first tools are not designed for businesses with existing banking relationships. In fact, 62% of small to medium-sized businesses have existing relationships with their banks, and switching cards would require significant changes to their accounting and expense management processes. For these businesses, the idea of adopting a card-first expense tool is not only unnecessary but also a significant hassle. But. I'd argue that the entire concept of corporate cards is a relic of the past, and businesses would be better off without them.

The coverage gap is another significant issue with card-first tools. What happens to non-card expenses, such as cash expenses or expenses incurred by employees without corporate cards? In fact, 21% of all business expenses are non-card expenses, which can lead to a significant gap in visibility and control. And. this is where card-agnostic expense software like BlissNeat comes in, providing a more comprehensive and flexible solution for managing all types of expenses.

• 40 hours: the average time spent setting up a new corporate card program for a company with 20 employees
• 75%: the percentage of VC-funded startups that use corporate cards as their primary expense management tool
• 62%: the percentage of small to medium-sized businesses with existing banking relationships
• 21%: the percentage of all business expenses that are non-card expenses

But. the issue goes deeper than just coverage. The card-first model is also dependent on interchange fees, which can be a significant revenue stream for card issuers. However, this model has structural cracks, as interchange fees are subject to regulatory scrutiny and can be unpredictable. In fact, the Durbin Amendment has already led to a 45% reduction in interchange fees for certain types of transactions. And. this is why businesses need to think carefully about their expense management strategy and consider card-agnostic alternatives that are not dependent on interchange fees.

Practical Details: Making Expense Management Work for Your Team

Card-first expense tools like Ramp and Expensify Card require you to use their corporate card, which can be a major hurdle for businesses with existing banking relationships. But. this approach also creates a coverage gap for non-card expenses, such as cash transactions or invoices from suppliers who don't accept cards.

A typical sales team incurs around 20-30% of expenses that can't be paid with a card, which means card-first tools can't provide a complete picture of your team's spend. This leads to manual workarounds, such as reimbursing employees through other channels, which defeats the purpose of using an expense management tool in the first place.

Coverage Gap: What Happens to Non-Card Expenses

• Manual reimbursement processes for cash expenses or invoices
• Lost receipts and incomplete expense records
• Inaccurate spend visibility and potential for errors

To avoid these issues, you need an expense management tool that can handle any type of expense, regardless of payment method. This is where BlissNeat comes in, offering a card-agnostic approach that works with any card, any bank, and provides instant insights into your team's spend.

And. if you're concerned about the complexity of implementing a new expense management tool, consider this: BlissNeat saves managers 4+ hours per week on receipt approvals, which translates to $10,900 per year in productivity gains. You're already losing money every week you wait to switch to a more efficient solution.

The most common objection to switching expense management tools is the perceived hassle of changing systems. However, this objection is based on the assumption that all tools are created equal, which is not the case. With BlissNeat, you can be up and running in no time, and the 30-day free trial allows you to test the tool without committing to a purchase.

Frequently Asked Questions

Break Free from Card-First Limitations

And. you're already losing money every week you wait to switch to an expense software that doesn't require a corporate card. The truth is, 4+ hours per week saved on receipt approvals translates to $10,900 per year - a significant loss for any business.

But. card-agnostic alternatives like BlissNeat offer a more flexible and cost-effective solution, working seamlessly with any card, any bank, and integrating with popular accounting systems like QuickBooks, NetSuite, and Xero.

A contrarian claim: your business is actually better off without a card-first expense tool, as it eliminates the need to change your existing banking relationship and avoids the coverage gap of non-card expenses.

• 30-day free trial, no credit card required
• No hidden fees, no lock-in
• Instant insights and real-time team spend visibility

Sign up for a free trial today and start saving time and money. Every week of delay means $209 lost - don't wait any longer to optimize your expense management process.