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.
Many businesses allow employees to use credit cards for business expenses, such as the goods and services necessary for the company’s operations, as well as travel and entertainment to meet with new and existing customers.
The use of credit cards in a business setting can raise a key question: Will employees use their own cards, subject to reimbursement, or a corporate card?
A corporate credit card solution could help simplify expense management and potentially yield additional business benefits.
Companies may be able to potentially avoid the need for reimbursing employees and reduce paperwork by automating data entry and integrating card transactions into their financial and accounting systems — potentially streamlining expense tracking, reporting, and management.
In addition to those potential advantages, businesses may find that simplifying corporate card management could help their finance teams focus more on strategic growth and overall business goals.
What Is a Corporate Credit Card?
A corporate credit card — unlike cards designed for individuals or small businesses — may have its own features to help ensure that users follow spending policies and procedures, log their transactions, and manage expenses to help support the company’s priorities.
A corporate card program could help managers set spending limits, identify unauthorized purchases, and flag potential violations of spending policies, such as travel and entertainment per-diem overages.
With a corporate card, the company — not the employee — may be responsible for charges made with each card.
Corporate credit cards may come with a range of features and functions, so comparing corporate card programs can help identify the best fit for your business.
What Are the Benefits of a Corporate Card Program?
A corporate credit card solution could offer multiple benefits, including the ability to help streamline business expense management, enhance expense tracking and reporting, improve cash-flow management, and reduce or even potentially eliminate the need to use personal cards for business spending.
Streamlined Business Expense Management
A corporate card program could help to simplify expense reporting, reduce data-entry errors, improve payment processes, and reveal small issues before they turn into bigger ones. Using corporate cards could potentially save time and money since employees may not have to fill out expense reports, track down receipts, or reconcile expenditures manually.
Enhanced Tracking and Reporting
A corporate card program could generate accurate and timely reports to reveal actionable insights and support real-time oversight and decision making. Managers could gain a clearer view of how the company's funds are being spent. Fraudulent or wasteful expenditures could be identified more quickly and efficiently, potentially saving the company money and allowing employees to focus more on their day-to-day roles.
Why Choosing the Right Corporate Card Program Matters
With the right corporate card program, managers may be able to generate data and reports when needed, gain better insights into company spending, and feel empowered to make financial decisions based on actual numbers.
Learning how to choose the right corporate card solution could help a business potentially avoid certain pitfalls, including paying hidden fees, lacking control over spending, and seeing employee morale impacted if the program isn't user-friendly.
Key Features to Look for in a Corporate Card Program
To get the benefits you want from a corporate card program, you may consider reviewing the options and compare corporate credit cards and their key features. Examples of features to consider may include:
- Spending controls
- Digital receipts
- Automatic expense categorization
- Virtual and physical cards
- Automated and customizable reports
- Integration with financial and accounting systems
- Rewards programs
- 24/7 customer service
- 24/7 online access to view statements, pay bills, submit expense reports, and set up email or text message alerts
- A mobile app to schedule and view transactions and set up alerts
- Cards that can be issued in foreign currencies for purchases in other countries
- Statement credits for travel fees
- Trip or baggage insurance
- Security features, like multi-factor authentication, data encryption, and real-time fraud detection
- A card company with a trusted name
Tips for Selecting a Corporate Card Program
To choose a corporate card program that’s aligned with your company’s goals, you may consider identifying typical purchasing patterns and consider card features like pilot programs and provider support.
Making a list of your top priorities could help you figure out how to choose the right corporate card solution. For example, do you need to control spending, help streamline financial management, produce better and more timely reports, improve decision-making, create efficiencies — or all of the above?
Consider the American Express® Corporate Card Program
With the American Express Corporate Card Program, you can help empower your employees to spend with control. Embed your company policy into every physical and Virtual Card and help gain peace of mind when it comes to employee spending.
Corporate Card Solutions FAQs
What is a corporate card and how is it different from a personal credit card?
A corporate card is issued by a business to an employee so they don’t have to use a personal card for approved business expenses. The company may be responsible for charges made with a corporate card, although in some cases, the company and employee may be jointly responsible.
How can I know which corporate card is right for my business?
Corporate cards may come with a variety of features, such as spending controls, customizable reports, and physical and virtual cards. By comparing corporate card programs, you may choose the one that's the best fit for your company.
What are the main types of corporate cards?
Some types of corporate cards include purchasing cards, travel cards, and meeting cards, among other options. Some cards may be designed for everyday expenses and occasional travel while others may be intended for frequent travelers. Benefits, rewards programs, and fees vary.
Can corporate cards help streamline expense management?
Corporate cards may be able to help streamline expense management through tracking and reporting features as well as automated functions.
Photo: Getty Images
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