This article contains general information and is not intended to provide information that is specific to American Express, or its products and services. Similar products and services offered by different companies will have different features, and you should always read about product details before acquiring any financial product.
Although business credit cards and corporate credit cards could both be useful ways to access capital, manage business expenses, and earn rewards, they may have different eligibility criteria, purposes, features and benefits.
Understanding the difference between these two solutions could help you choose the option that makes the most sense for your business.
Below you can find a business credit card and corporate credit card comparison, along with a breakdown of some of their benefits and risks.
Key Takeaways:
- Business and corporate credit cards may both be used to pay for company expenses, build credit history, and earn rewards.
- Business and corporate credit cards may have different use cases and eligibility requirements. Business cards may generally be available to small businesses while corporate cards may generally be available to larger companies with higher annual revenues. For mid-size businesses, both business and corporate credit cards could be considered, depending on the criteria for each card and the business's needs.
- The right type of credit card for your business may depend on several factors, including your business type, size, and finance needs.
What Is a Business Credit Card?
A business credit card is a credit card that may allow business owners or authorized employees to pay for company expenses. For example, a business owner might use their credit card to cover office supplies, phone and internet, and meals with clients.
Like personal credit cards, business credit cards may provide cardholders with access to credit. Cardholders could make a minimum monthly payment and incur interest or pay off their balance each month.
While business credit cards may be available for companies of all ages and sizes, they can be a popular option for small-business owners.
Advantages of a Business Credit Card
Business credit cards may offer many benefits for business owners, such as:
- Opportunity to build credit history. By using their cards responsibly and making on-time payments, businesses could help improve their credit histories.
- Rewards. Business credit cards may offer rewards and benefits for business owners, such as cash back on eligible purchases, points, and travel benefits.
- Expense tracking. Business owners can consider separating their personal and business credit accounts to help track their spending.
Business Credit Card Considerations
Business credit cards for small businesses can also come with important considerations, including:
- Individual liability. The cardholder may be responsible for the card balance.
- Credit limits. Some credit cards may come with spending limits that may not cover certain expenses.
- Membership fees. Some business credit cards may require the business to pay annual fees to take part in their membership program. Each credit card product is different, so make sure you look for the one with the features that work for your business.
Who Is Eligible for a Business Credit Card?
Companies of all sizes may apply for business credit cards. This may include sole proprietors, gig workers, and freelancers. Each lender could set its own terms and requirements for approval.
What Is a Corporate Credit Card?
A corporate credit card is a payment solution that may be geared towards larger businesses that may have higher revenues and more complex needs in managing company and employee spend.
Similar to business credit cards, corporate credit cards could be used to pay for business expenses and may include access to rewards programs and benefits. Corporate credit card programs could also allow authorized employees to have their own cards.
Advantages of a Corporate Credit Card
There may be certain advantages to having a corporate credit card, such as:
- Employee expense management. Large businesses may provide employees with their own corporate credit cards to make and track expenses. They may be able to set spending limits to manage costs.
- Administrative tools. Corporate credit cards may come with automated features like expense reporting, employee reimbursement, and spending alerts.
- Travel rewards. Corporate credit cards may come with business travel perks like frequent flyer rewards and complimentary insurance.
Corporate Credit Card Considerations
It's also important to understand the key considerations of corporate credit cards, including:
- Liability. Some corporate cards may offer corporate or combined liability. If a company is approved for corporate liability, the company could be responsible for all charges. If a company is approved for combined liability, both the company and the individual card member may be responsible for charges incurred on the individual card member account.
- Membership fees. Some corporate credit cards may require the business to pay annual fees to take part in their membership program. Each credit card product is different, so make sure you look for the one with the features that work for your business.
Who Is Eligible for a Corporate Credit Card?
Certain companies, depending on their size, revenue, and credit history, may be eligible for a corporate credit card. However, each lender may have its own requirements for application approval.
What's the Difference Between a Business Credit Card and a Corporate Credit Card?
The biggest differences between corporate and business credit cards can be in their eligibility requirements, liability terms, and features:
- Eligibility. Businesses may be eligible for corporate credit cards if they meet the issuer’s requirements for revenue and other criteria.
- Features. Corporate credit cards may offer specialized services to the business, assuming they meet the card's requirements.
Consider the American Express® Corporate Card Program
With the American Express Corporate Card Program, you can customize a program that is right for your business from a selection of powerful solutions, with the backing of American Express. Choose and apply for only what you need from our selection of Cards and digital tools to help you operate efficiently.
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