Guide to the Divvy card

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For business owners and entrepreneurs, there’s nothing funny about fraud. But with 40 percent of today’s finance teams still relying on old-school spreadsheets for expense management, sham expenditures might be easier to sneak past an inefficient system vulnerable to human error than you’d think.

Many of today’s best business credit cards can help ease the pain of managing expenses thanks to built-in tracking tools, accounting-software integrations and spend controls. Here’s what you need to know about Divvy, a corporate card that offers all those things and more.

What is Divvy card?

The Divvy card is a smart corporate credit card that pairs with financial software to fully automate the expense-management process for small- and medium-size companies. The cloud-based Divvy platform lets business owners and managers monitor company spending in real time via instant notifications for every card swipe, eliminating the need for workers to file expense reports manually – and for finance and HR teams to process them manually, too.

With the Divvy card, companies can create recurring or one-time spending budgets organized by event, team, location, project and vendor. You can also set individual spending limits for every cardholder within each budget category (and adjust them as needed on the go). Plus, you can approve department and employee requests for reimbursement of out-of-pocket expenses and mileage.

Unlike some corporate and small business credit cards that charge for each additional cardholder, Divvy provides free physical and virtual cards for all employees. The entire Divvy platform, in fact, is free: The fintech company makes money by taking a cut of interchange fees paid by merchants to cover the cost of processing a Divvy card transaction.

Divvy card benefits and features

The no-annual-fee Divvy Mastercard offers a variety of features to help companies confront many of the more onerous aspects of financial management, such as monitoring the business’s cash flow and working capital needs, tracking employee expenditures (without relying on cumbersome spreadsheets or sorting through stacks of paper receipts) and preventing overspending.

Here’s what you need to know about some of the Divvy card’s biggest benefits.

Earn rewards for everyday expenses

Like most business credit cards, the Divvy card earns rewards for everyday spending. But unlike most business credit cards, the rates are determined by your billing schedule. The more often you pay off your Divvy card balance, the more rewards you can earn. Here’s what that looks like:

Category Weekly payments Semimonthly payments Monthly payments
Restaurants 7X 4X 2X
Hotels 5X 3X 2X
Recurring software subscriptions 2X 1.75X 1.5X
Everything else 1.5X 1X 1X

Note: Businesses must spend at least 30 percent of their credit line each month to qualify for monthly points.

Rewards earned with the Divvy card can be used for gift cards, statement credits, travel and cash back. And thanks to a handy little estimator tool on Divvy’s website, you can easily see the potential value of your points for each redemption method:

It looks like travel is your most lucrative redemption option, giving you a per-point value of $0.01. Meanwhile, opting for a statement credit makes each point worth less than half a cent.

While you have to select a billing cycle at the time of your Divvy card application, you can change it later, potentially allowing you to maximize your rewards earnings based on seasonal business slumps or particularly busy travel periods.

Reduce fraud and overspending

In addition to free physical cards, Divvy offers customers the ability to generate virtual cards with unique 16-digit numbers, CVV codes and expiration dates, which it recommends for use when shopping online, making one-time purchases or managing subscriptions, such as those for software and licenses. Businesses can create as many virtual Divvy cards as they want with any number of parameters, like how long the card remains active, where it can be used and its spending limits.

Save time and money

The Divvy card functions more like a charge card than a traditional credit card, meaning you won’t be able to carry a balance on it. You’re required to pay your bill in full, whether you choose a weekly, a semimonthly or a monthly billing schedule. Although interest charges on a business credit card are tax-deductible, using the Divvy card means you won’t have to pay interest in the first place.

Build business credit

Similar to a high personal credit score, a good business credit score can make it easier to obtain financing with favorable rates and terms. It can also help you negotiate better trade deals with vendors and make your business more attractive to potential investors, if that’s something you’re interested in.

Divvy reports your card balances and payments to the Small Business Financial Exchange, a nonprofit trade association in the U.S. that gathers small-business payment data and makes the information available to four commercial credit-reporting bureaus: Dun & Bradstreet, Equifax, Experian and LexisNexis Risk Solutions.

By making all of your Divvy card payments on time and in full, you can build a positive credit history for your business to better position it for long-term success.

Access value-added perks

In addition to ongoing spending rewards, the Divvy Mastercard offers benefits such as car rental insurance, 24-hour customer support and MasterAssist medical services. On top of that, Divvy’s corporate partnerships provide Divvy cardholders with access to a ton of rotating money-saving perks, which can include dollar or percentage discounts at places like Google Ads, Adobe Creative Cloud, Vistaprint, Carta, BambooHR, Verizon, Amazon Web Services, FedEx Office and more.

Comparing Divvy card to other business cards

Most business credit cards, albeit to varying degrees, offer similar benefits: access to fast financing in a pinch, reporting tools for easier bookkeeping, purchase rewards, separation of business and personal expenses, a way to build business credit, more control over employee spending – the list goes on.

However, the combined features of the Divvy corporate card and the financial software that preceded it create a holistic expense-management platform that helps Divvy stand out from the pack:

  • No annual fee. The Divvy card has no annual fee, whereas many other business and corporate cards do.
  • No fees for employee cards. Additional cardholder fees can add up quickly but the Divvy card provides unlimited physical and virtual cards to all employees for free.
  • No personal guarantee. With many business cards, the risk associated with late payments or unpaid balances falls on the individual cardholder. But the Divvy card doesn’t require a personal guarantee on the part of the business owner, nor does it even conduct credit checks on account administrators or authorized signers. Instead, Divvy credit limits are based on the financial health of your business as gleaned from your corporate bank account and revenue.
  • Customizable rewards structure. Most business and corporate cards offer purchase rewards, but the Divvy card is unique in that rewards are tied to the billing cycle selected at the time of your application—which effectively lets you choose your own rates.
  • Budgeting features. Divvy’s software includes robust budgeting tools that let you create budgets by department, team or project, assign permissions that let managers approve or deny funding requests instantly via mobile notifications and more.
  • Integrated bill pay. Divvy’s optional Bill Pay service means you can take care of bills and invoices within the same software, creating a one-stop-shop for accounts payable while still giving you control over when approved payments are actually funded.

Should you sign up for Divvy card?

The answer to that question is a resounding maybe. Many other business credit cards provide valuable sign-up bonuses, annual statement credits worth hundreds of dollars and premium perks you won’t find on the Divvy card.

That’s because Divvy started out as free financial software for businesses—the Divvy card came later. And as a stand-alone business credit card, it’s perfectly fine. But when you evaluate the Divvy card as part of a holistic platform that enables businesses to control company spend, create and manage budgets, access capital, automate the expense-reporting process and more, it becomes a lot easier to see its value.

If all you’re looking for is a dedicated business credit card, you can probably find more lucrative rewards and benefits elsewhere. But if you’re looking for a more comprehensive way to manage your company’s finances, the Divvy card is worth considering.