Pros and Cons of Corporate Credit Cards
Corporate cards are available to large small businesses. A corporate credit card is one that is issued to employees by the employer. These cards can be used for business-related expenses only. A company can issue a corporate credit card for making payments during business trips without having to use their personal credit cards.
Pros of Corporate Credit Cards
- You can earn rewards and benefits that help the company.
- It enables simplified analysis and tracking of all business-related transactions.
- This prevents employees from making personal charges on a company card.
- Enables better controls on the spending.
- The cards have dedicated or on-call customer service representatives.
Cons of Corporate Credit Cards
- This may be too expensive for smaller companies.
- An additional cardholder fee can add up pretty fast.
- Employees cannot earn their own rewards.
- The application process for a corporate credit card is tough.
One perk that comes with corporate cards is the ease of tracking your employee's spending. Instead of having them make personal charges and then submit the reports and receipts for reimbursement, you can manage the spend limits, and also track budgets. You can also manage the fraud risk. Almost all corporate cards offer very detailed analytics all in one system.
Since credit cards are more complex, corporate cards often come with a designated customer service representative who will help resolve issues quickly. These representatives are on-call 24/7 and they also have knowledge of every company's needs.
Should You Get a Corporate Card for Your Business
Corporate cards offer a lot of benefits like dedicated customer service representatives, easy expense tracking, and no liability for individual employees. These are only available to large corporations who have millions in their annual revenue. If you have a small business, a corporate credit card could be a little difficult to afford.
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