Reliable recordkeeping is also important when you’re applying for business funds, whether it’s a loan, a grant or a line of business credit. If your personal finances are mixed in with your business finances, you can have difficulty getting funding — and may not be able to do so until you’ve cleaned up your accounts. Information on transactions across the program can feed into accounting and Enterprise Resource Planning systems (ERPs), giving the company real-time visibility into its expenses and making reporting more efficient. Some issuers also require companies to have a minimum of 15 employee cardholders, for example. Bank accountholder agreement and benefits that are included with your card program.

Company Policies for Corporate Credit Cards

1. Employees can pay for hotels, meals and rental cars—as well as have access to cash at ATMs—without using personal funds or company advances.
2. Look for corporate card programs that have robust, self-serve reporting software.
3. While they provide typical credit card benefits, corporate credit cards are designed to meet the needs of companies that desire more full-bodied, customizable financial tools to track and control employee spending.
4. Business owners that do not meet these thresholds can apply for a small business credit card instead.
5. This means that the business entity, not the business owner, is legally responsible for all charges made on the card.

Some corporate cards enable you to issue customized spend limits with embedded policy controls, which allows you to enforce expense policies at the point of purchase. Advanced credit card programs will allow for highly granular control, like different limits for specific expense categories and vendors, or time-bound increases to cover specific projects or offsites. However, if your small business is legally classified as a corporation, has revenue in the millions and has multiple employees who need access to a corporate credit account, it might be time to consider a corporate credit card. Corporate cards do not require a personal guarantee, so it’s a good idea to make sure your business has built up a solid credit history before applying. Business credit cards also require a personal guarantee, which means you are personally liable for any charges made on the account (including authorized users’ charges).

Let’s have a look at the advantages and risks of using corporate credit cards. As per the above criteria and information, credit card issuers decide if the company qualifies for a corporate credit card or not. Nevertheless, the employee is still responsible for reporting those charges. The credit card issuer checks the company’s credit history before issuing the employee this card.

Customizable workflows can be set up to automatically approve routine, in-policy expenses while routing exceptions to the appropriate approvers. How corporate credit card bills are paid depends on the card issuer and card type. Often, card issuers offer companies a choice in how they want to determine payment what is corporate credit card liability. Corporate credit cards are issued based on the business’ financial health and typically do not require a personal guarantee.

Additionally, many corporate card programs provide rewards or cash back on business spending, returning value on everyday expenses. A modern corporate card program offers a range of benefits that can transform your company’s approach to expense management, from simplifying processes for employees to enhancing control and visibility for finance teams. Once a corporate credit card is issued, both the company’s name and the employee’s name will appear on the card. Each employee typically gets their own individual credit card number, even though expenses roll up to a single corporate account. Since many employees might be issued a corporate credit card, businesses typically create guidelines for authorized expenses.

During that time, you charge several dinners on your business credit card. When it comes time to document your expenses, it may be difficult to tell the dinners apart. Your credit card company may not be able to catch any mistakes, but the IRS is more meticulous. And if your expenses are audited after filing, you may end up paying fines or even back taxes. Mixing business expenses with personal expenses complicates your expenditures on a few different levels.

This unique feature gives you granular control over expenses while empowering employees to make necessary purchases without unnecessary approvals. The Brex business account consists of Checking, a commercial demand deposit account offered by Column N.A. (“Column”), member FDIC, and Treasury and Vault, which are cash management services offered by Brex Treasury LLC (“Brex Treasury”), member FINRA/SIPC, an affiliate of Brex. It’s best not to mix personal expenses with business spending on a corporate card. Depending on the type of corporate credit card, either the employee or the employer may be responsible for paying the credit card bill.

Although reimbursable, employees need to forgo personal funds temporarily. Going a step further, a corporate card program is a helpful way to simplify expense management. Expense management is a hassle when employees share corporate cards or make business purchases on their personal cards and submit them for reimbursement. A modern corporate card program, however, makes everyone accountable for their own spend and empowers employees to spend responsibly while providing accurate, real-time visibility into every expense. Advanced global corporate card programs allow companies to issue physical and virtual cards in multiple currencies and directly reimburse employees in their local bank accounts and currencies.

1. At the end of each billing cycle, the company can make a consolidated payment for all the cardholders, rather than managing dozens—if not hundreds or thousands—of individual employee statements.
2. Visa Global Customer Care Services team provides information regarding general account or card benefit questions.
3. Get a complete business travel payment and expense management solution, with worldwide merchant acceptance and no annual card fees.
4. Small business credit cards tend to have better rewards, although many corporate credit cards still offer some type of rewards program.
5. The best corporate card programs will enable you to automate much of the expense review and approval process.
6. Providing investment banking solutions, including mergers and acquisitions, capital raising and risk management, for a broad range of corporations, institutions and governments.

Types of Corporate Credit Cards

If your company operates globally (or has global aspirations), you’ll need true multi-currency support. That means cards that can be issued in a wide range of currencies to help you cut down on unnecessary foreign exchange (FX) fees. You should also look for a corporate card program that enables customizable, localized spend limits to drive financial discipline worldwide. Some corporate card programs can automatically generate digital receipts for thousands of merchants, eliminating the need for employees to keep and submit paper receipts.

Spending limit is reached or almost reached every month.

Putting your personal purchases on your business credit card technically isn’t illegal. However, making personal purchases on a business credit card likely violates the terms and conditions of your card agreement, which can come with serious consequences. Although some companies offer electronic expense reporting to quicken report creation, the report submission and verification process is still manual. An expense management software automates and streamlines card expense reporting, verification, and reconciliation. Learn what issuers look for, how to prepare your application, and tips to increase your chances of approval.

Virtual Credit Cards

This means that cardholders are unlikely to see their credit affected unless they become delinquent on credit card debt with shared liability. When you open a corporate credit card, be ready to talk to your employees about your company’s new credit card policies, as well as how to use their company cards. Ensure that employees understand that they should only make business purchases on the card, as well as the importance of keeping up with payments and tracking receipts.

For businesses looking to kick things up a notch, here’s a rundown of how corporate credit cards work. Before a corporate credit card is activated, an employer may offer (or require) in-person or online training sessions designed to help employees learn the policies. In addition, an employer may post and update policies on its internal website.

Send Payments

A corporate card program provides employees with company-issued cards for business expenses. While most traditional business cards are geared toward small businesses, corporate card programs are typically tailored to scaling businesses with growing revenue and headcount. Corporate card programs eliminate the need for employees to use personal funds for business expenses and then request an expense reimbursement. No more waiting weeks for payroll-driven reimbursements or worrying about large charges on personal credit cards. Employees can make purchases with confidence, knowing they’re using company funds directly for approved purchases. Corporate credit cards are cards that let employees pay for authorized business expenses while offering features that make it easier for companies to manage and track finances.