Corporate credit cards form a distinct part of the credit card space, separate from small business cards and personal credit cards. Various organisations all over the globe offer corporate cards to their employees for business expenses. This includes travelling for work, overseas accommodation expenses, food costs, etc. These cards are issued in the organisation’s name. However, the cards also display the names of the employee cardholders.
Unlike small business cards and personal cards, corporate credit cards are only issued by a few card companies. The corporate accounts are generally established by companies using banking relationship. It can also happen through a deal discussed with a credit card issuer. The company’s credit is taken into consideration in this kind of a relationship. It is very similar to the situation when an individual applies for a personal credit card where that individual’s credit status is considered.
When payment is concerned, corporate credit cards can be grouped into two categories – company payment cards and individual payment cards. If you get individual payment corporate credit cards issued by your company, then you must submit your expense reports. This depends on the policy set by different companies. You will have to make the payment directly to the credit card issuer and then ask for reimbursement from your company. In case you get a company payment corporate credit card, the company will make all the payments for expenses that are related to the business. However, if there are any personal expenses on that card, you will have to make the payment to the issuer directly.
While each credit card issuer offers different benefits on their corporate credit cards, there are some common benefits which companies can enjoy by availing corporate credit cards.
Listed below are various benefits offered by corporate credit cards.
The Citibank Corporate Card provides a robust travel and expense (T&E) spend management tool for companies. It streamlines travel and entertainment expense reporting and also provides multiple rewards for using the card across the globe.
Features of Citibank Corporate Credit Card
The Corporate Credit Card offered by HDFC is a premium category card that offers both travel and entertainment benefits to cater the needs of the various organisations.
Features of HDFC Corporate Credit Card
Featuring a smarter expense management, the SBI Platinum Corporate Card enables the companies to easily track and control the expenses while providing real-time expense management.
Features of SBI Platinum Corporate Credit Card
The ICICI Bank Corporate Credit Card offers a comprehensive solution for companies to manage their travel and entertainment expenses efficiently.
Features of ICICI Corporate Credit Card
Axis Bank Corporate Credit
The Corporate Credit Cards offered by Axis Bank provides an efficient travel and expense management solution to companies and organisations. The cards are accepted worldwide and come with customised solutions that meet the needs of most corporates.
Features of Axis Bank Corporate Credit Cards
Most banks allow online application for corporate credit cards. You can visit the website of respective bank, check the available credit cards, choose the one that suits your organisational needs and apply for the same on the bank’s website.
Upon submitting the online application, the bank may call you back provided the details match the eligibility criteria. The further steps in the application process will then be informed to you over the call.
No matter what type of corporate credit card your company gives you, it is very important for you get familiarize yourself with reporting and spending rules of your employer. Understand the travel policies, spending limits, procedures and restrictions associated with the credit card. For example, an organisation might state that car rentals and flight tickets fall under the category of approved travel spends, but toll costs and fuel charges must be given by the employer from his/her own pocket.
Along with learning all the major company policies on the use of corporate credit cards, you must also know about policies that are specific to your position or designation in the organisation. For example, a field engineer and the CEO might have different spending profiles.
As a cardholder, you must find out the limits and types charges associated with your corporate credit card. Charge limits can exist within the approved categories for spending too. Some of the expense restrictions are established for various kinds of merchants. Such control suggests that the employer can cap the charges at a particular level for the office supplies but offer more for the flight tickets. The transactions being carried out at any given time can also be tracked and controlled by your employer which stops you from overspending. You should also take proper training for using a corporate credit card. At times, these training sessions are made mandatory by the companies.
Unapproved charges can be a threat to corporate credit cardholders. If you have an individual payment card, you must submit your expense report and get it approved by your company’s management. In case there are unapproved charges on your corporate credit card statement, then you can be on the hook. Also, mixing corporate expenses and personal expenses can be a bad idea. At times, you might feel like skipping the hassle of using your personal credit card for your expenses when you are on a business trip. When the expenses are tracked, you could land into collision course with your employer.
If you are spending on something that is related to work, make sure that the particular spend is 100% related to your work. Don’t spend on things that have chances of going into the unapproved charges bucket. Not only will you lose out on money, but also you will stand answerable to your employer.
When your company gives you a corporate credit card, it might want to check your personal credit score. This would give them an idea of your expense management, spending habits and repayment capabilities. If you avoid credit card payments, it will affect your credit score a lot. The credit bureau keeps all the information about your late payments. If your employer comes to know that you have not cleared your outstanding on time, you might not be considered eligible for the corporate credit card. Make sure that you pay your debts on time to keep the credit score high.
You, as an employee, must ensure your card’s security. Corporate credit cards come with unique numbers. In case of loss or theft of your credit card, block it immediately. This will stop the possibilities of fraudulent activities using your corporate credit card.
Corporate credit cards offer travel expenses for the employees traveling for business purposes. As an employee holding a corporate credit card, you can avail access to VIP lounges at several international airports. It also offers travel insurance so that you can enjoy the peace of mind you deserve while traveling.