Corporate Credit Card
Contents
Unraveling the Mystery of Corporate Credit Cards
Understanding Corporate Credit Cards
Corporate credit cards, also known as commercial credit cards, are issued to employees of established companies to cover authorized business expenses. These cards streamline expense management for both employers and employees and often come with additional perks like travel rewards and lounge access.
How Corporate Credit Cards Work
Designed for larger companies with significant revenues and a sizable workforce, corporate credit cards are typically issued based on the financial health of the company rather than the personal finances of its owners. Major credit card issuers like American Express and Chase offer these cards, requiring businesses to provide financial statements and organizational details for approval.
Types of Corporate Credit Cards
Corporate credit cards come with different liability structures. With individual liability cards, employees are responsible for paying the credit card issuer directly for charges, while corporate liability cards hold the employer responsible for approved expenses. Understanding the payment structure is crucial for both parties to avoid confusion and ensure timely payments.
Benefits of Corporate Credit Cards
Corporate credit cards offer various benefits, including expense management tools, financial relief for employees, and rewards programs that can be tailored to individual preferences. Additionally, cardholders may enjoy perks like airport lounge access and travel assistance services, making business travel more convenient and enjoyable.
Company Policies for Cardholders
Employees should familiarize themselves with their company's corporate credit card policies to avoid potential accounting issues or policy violations. Following spending limits, adhering to approved expense categories, and staying informed about department-specific rules are essential steps to ensure compliance.
Special Considerations
Cardholders should be aware of their responsibility for timely bill payments and the potential impact on their credit score if payments are missed. Additionally, safeguarding the corporate credit card against loss or theft is crucial, and prompt reporting of any incidents is necessary to mitigate risks.