Table of Contents Hide
- Company Credit Card Definition
- Best Credit Card Company
- Who gets a corporate credit card?
- Is a company credit card worth it?
- Is it hard to get a corporate credit card?
- Do you build credit with a company card?
- Can anyone use a company credit card?
- Is it easier to get credit with an LLC or a corporation?
- Related Articles
- FAQ’s On Company Credit Card
- Can a Limited Company Get a Credit Card?
- What Are Company Credit Card Called?
- Does a Company Credit Card Affect My Credit Score?
- Who Needs a Company Credit Card?
- Can I Pay My Employees With a Credit Card?
The company credit card is still a popular way to manage business expenses. It provides businesses with a unique method for allowing employees to pay for a wide range of work-related expenses, such as train or plane tickets, restaurant bills, hotel stays, and office supplies – whatever they require to do their job.
However, certain policy and procedures are set in place by the company to ensure effective usage of the credit card by the employees
In this article, we’ll talk about the limited credit card company and the best policy for issuing and using credit cards.
Company Credit Card Definition
A company credit card is issued to employees of a company and allow them to charge legit business expenses. In this way, employee satisfaction is ensured because they do not have to spend money out of their own pockets.
These cards are issued directly between your company and the credit card company, in your company’s name with the employee’s name on them. Company credit cards are extremely efficient in every way, from spending limits to direct card feeds to rewards.
Company Credit Card Policies and Procedures
A policy reduces the risk of issuing company credit cards by preventing card misuse, whether accidental or intentional. Therefore, if a company provides credit cards, it should as well develop a policy summarizing how employees must use them.
#1. The obligation of the company credit cardholder
Company credit cards should only be for business expenses; not for personal expenses. Also, the usage of the company credit card should only be limited to the bearer; it is not to be shared with coworkers. Cardholders are responsible for understanding the rules and limits, as they are obligated to repay anything they spend that is limited to or outside of the company earnings and credit card policy.
#2. Limited company credit card spending
Setting reasonable limits is a good idea, although these may differ for different employees. An international sales professional, for example, is likely to spend more on overseas travel and accommodation than someone who is primarily in one office location.
When employees’ spending limits are approaching, some corporate card providers send out alerts. This alerts the employee that they may need to request additional clearance and alerts the finance team to raise expected spending.
#3. Exceptions for the use of company credit cards
Some items may require additional approvals, for example, high-cost items like overseas flights or spending on leisure activities for client entertainment or staff events. Clearly, list these exceptions and explain who must approve them and how to do so. As a result, your employees can obtain approval for necessary expenditures promptly.
Another exception could be spending on personal expenses in extreme circumstances. If your employee is in danger or has a genuine need, you could allow spending on necessary transportation or lodging – but the policy must specify the exact circumstances and how the employee should notify you.
#4. Reclaiming Company Credit Card Expenses
To maintain cost control and policy adherence, your company requires a clear record of spending using a credit card. Furthermore, specify how employees should keep receipts, as well as when they can reclaim money on a credit card if the bill is sent directly to them. This policy requires that if your company pays the bill, you must ensure that the employee has given business justifications and receipts for each item charged before the credit card balance payment is due.
#5. What you should do if your company’s credit card is lost or stolen
A company’s credit card may have high limits, so if they are lost, the company may suffer losses as a result of fraudulent spending. Therefore, employees must be aware of the need to report the loss of their card as soon as possible, as well as how to do so.
Additionally, ensure that this policy is not limited to employees but extends to the company credit card provider so that cards can be cancelled immediately if they go missing.
The company reserves the right, with or without cause, to release and withdraw the company credit card at any time.
The credit card should be only for company-related expenses and purposes related to the employee’s job responsibilities.
Cash advances, bank checks, traveller’s checks, and/or electronic cash transfers are limited to the company credit card.
Employees who use the company credit card must accept full responsibility for all purchases made with the card.
Employees who have access to the company credit card are limited by this policy to give the card to unauthorized individuals or employees.
The purpose of a company credit card policy is to
- Outline the eligibility and authorization procedures
- State the terms and conditions of the company credit card
- Define the limitations and exceptions, and
- Explain the card violations and disciplinary action process.
Best Credit Card Company
#1. The Blue Business Plus.
The Blue Business Plus credit card from American Express is famous for having no annual fee. Company owners who want to earn valuable Membership Rewards points on everyday business spending will love the Blue Business Plus card. It’s best for sole proprietorships who would benefit from a card with low introductory interest rates and higher purchasing power.
Blue business card offers 15,000 bonus points after spending $3,000 within the first three months of account opening with no annual fee. Even more, you can earn and transfer Membership Rewards points to 22 different travel partners. Extensive warranties, purchase insurance, baggage insurance, and secondary car rental insurance are all available.
More Features of this best company credit card include
- Spend $3,000 in eligible purchases on the Card within the first three months of Card membership to earn 15,000 Membership Rewards® points.
- On everyday business purchases like office supplies or client dinners, earn 2X Membership Rewards points. 2X applies to the first $50,000 in annual purchases, then 1 point per dollar after that.
- With Expanded Buying Power, you can use your Card beyond its credit limit.
- There is a limit to how much you can spend over your credit limit. It varies, however, depending on your Card usage, payment history, credit history, financial resources known to American Express, and other factors.
- For the first 12 months from the date of account opening, you’ll get a 0% intro APR on purchases. Again, a variable rate of 13.24 %-19.24 %, depending on your creditworthiness and other factors at account opening.
#2. American Express(Amex)
The Amex Business Gold card is a great option for high-spending small businesses because it allows you to earn 4x points in the two areas where you spend the most. The card is ideal for companies that place a premium on simplicity. Below is the rundown of the benefits accompanied by this company credit card.
- Spend $10,000 on eligible purchases with the Business Gold Card within the first three months of Card Membership to earn 70,000 Membership Rewards points.
- Earn 4X Membership Rewards points in the two categories where your company spends the most money each month. Other purchases earn you 1X points.
- Each calendar year, the first $150,000 in combined purchases from these two categories earns 4X points.
- Earn 25% back on eligible flights booked with Amex Travel when you use points for all or part of the flight, up to 250,000 points per calendar year.
- On purchases of $100 or more, a flexible payment option with interest is available to help manage cash flow.
#3. Business Platinum Card
The American Express Business Platinum Credit Card is best for frequent travellers who want to add a touch of luxury to their company trips. While the card has a high annual fee, you will receive a slew of valuable benefits in exchange. In addition, they include generous annual travel credits, as well as peerless lounge access, plus Amex Centurion Lounges.
As stated earlier, the Business Platinum Card offers its users a slew of benefits, thus:
- Earn 100,000 Membership Rewards points after spending $15,000 on eligible purchases in your first three months of card membership.
- Furthermore, you can earn 5X Membership Rewards points on flights and voucher hotels on amextravel.com.
- You can increase your Membership Rewards points by 50%. Again, on each eligible purchase of $5,000 or more, you’ll get an extra half point per dollar. As a result, you can earn up to 1 million bonus points each year.
- Bonus from the airline of 35%: When you book on amextravel.com with Membership Rewards Pay with Points for all or part of a flight with a qualifying airline, you can get up to 500,000 bonus points per calendar year.
#4. Ink Business Card
Company owners will appreciate the Chase Ink Business Cash credit card because it has no annual fee. Cardholders can earn 5% cash back on office supplies and certain utilities, and 2% cashback at restaurants and gas stations. Additionally, this card’s current sign-up bonus is a whopping $750. According to TPG, it is worth $1,500, excluding any bonus points you may earn from the valuable bonus categories.
The fact that there is no annual fee makes it the best credit card for small company owners. Other interesting benefits include
- After spending $7,500 on purchases in the first three months of opening your account, you’ll get a $750 bonus cashback.
- Each account anniversary year, earn 5% cashback on the first $25,000 spent in combined purchases at office supply cashback on internet, cable, and phone services. On all other purchases, you’ll get 1% cash back.
- More importantly, the inspection of your card transactions for possible signs of fraudulent activity using real-time fraud monitoring.
- You won’t be held liable for unauthorized charges made with your card or account information if you have Zero Liability.
- Finally, on purchases, there is a 0% introductory APR for the first 12 months.
#5. Marriott Bonvoy Business
Marriott Bonboy is another company credit card from American Express that is best for business travellers. This card is a good choice for small businesses that want to take advantage of the benefits offered by Bonvoy properties all over the world. For the most part, it has a better welcome offer and benefits than the Marriott consumer version.
Within the first three months of card membership, you can earn 75,000 points. Also, you can receive up to $150 in statement credits on eligible purchases if you spend $3,000 on the card. More benefits from Bonvoy credit card include
- At hotels that participate in the Marriott Bonvoy program, you can earn 6x points.
- You can also earn 4x points at restaurants, gas stations, wireless phone services purchased directly from service providers, and shipping purchases made in the US. All other eligible purchases will earn you 2x points.
- Every year on the anniversary of your Card account, you’ll get a free night. Plus, an additional free Night.
- With your Card, you’ll get complimentary Marriott Bonvoy Silver Elite status. Furthermore, after making $35,000 in eligible purchases on your Card in a calendar year, you’ll be upgraded to Gold Elite status.
#6. Capital One Spark Miles
Next to make it on the list of best company credit card is Capital One Spark Miles. This card is a convenient way to earn rewards on any business purchase, regardless of category. These miles can then be redeemed for travel or transferred to partners with ease.
With this card, you won’t have to juggle different bonus categories because you’ll earn 2x on every purchase. Also, employee cards are free and earn 2x points on all purchases.
Capital One Spark is a budget-friendly card with an annual fee of only $95 that’s waived the first year. According to TPG valuations, the sign-up bonus is only worth $850, which is less than some of the best company travel credit card. Conversely, this is the card to get, if you’re, perhaps, looking for a card with a few extra perks for when you travel.
#7. United Business Card
For a low $99 annual fee, the United Business card offers a slew of travel benefits that will benefit business owners who prefer to fly United. The following are some of the reasons why this company credit card is one of the best: On dining, flights, and hotel stays, this Business Card offers infinite 2 miles per dollar spent.
Furthermore, all other purchases earn you one mile for every dollar spent. Cardholders get, on the other hand, a $100 fee credit toward Global Entry or TSA PreCheck, a free first checked bag, priority boarding, and 25% back on United in-flight purchases, among other benefits.
#8. Southwest Rapid Rewards Premier Credit Card
Business travelers and frequent Southwest flyers who want to achieve A-List status or earn a Companion Pass should likely apply for this card. The following benefits are what makes this company credit card one of the best there is: On Southwest purchases, the Southwest Rapid Rewards Premier Credit Card offers two points per dollar. Also, every dollar spent on other purchases earns you one point.
For the most part, the card’s points can help you qualify for the Companion Pass, which allows you to fly with one companion for free when a seat is available. After you spend $5,000 on purchases in the first three months, you’ll get 80,000 points. Again, after your Cardmember anniversary, you’ll receive 9,000 bonus points. When available, four premium boardings are available per year, along with in-flight WiFi Credits.
Even more, $1 on Southwest Airlines earns you 3 points. That means 2 points for every dollar spent on social media and search engine advertising, Internet, cable, and phone services, and 1 point for every dollar spent on everything else.
Who gets a corporate credit card?
Corporate credit cards are those given to staff members of well-established businesses, allowing them to charge their permitted business expenses—like hotel stays and airfare—without having to use their own card or cash.
Is a company credit card worth it?
Benefits like cashback, rewards, and travel insurance are frequently offered with business credit cards. But be warned that some can impose a yearly usage charge. Businesses can avoid paying interest on their credit card borrowing in the same manner as individuals do if they pay off the balance in full each month.
Is it hard to get a corporate credit card?
A credit issuer is unlikely to perform a hard check into your personal credit for corporate credit cards as they don’t call for a personal guarantee. This implies that your company may still be eligible for a corporate credit card even if you have a low personal credit score.
Do you build credit with a company card?
Yes, business credit cards can aid in improving your score. Utilizing a business credit card assists in preserving a low credit utilization rate, and appropriate account management may help the business expand its credit limit and improve its credit score.
Can anyone use a company credit card?
In a legal sense, it is acceptable to charge personal expenses on a corporate credit card. However, using a corporate credit card for personal expenses is probably against the card’s terms and conditions, which might have very serious repercussions.
Is it easier to get credit with an LLC or a corporation?
According to the Internal Revenue Service, a business must be registered in the United States and have citizens of the United States as shareholders in order to receive a credit card. As a result, corporations can find it simpler to get a credit card than an LLC as shareholders of corporations must be citizens of the United States.
A company credit card is the best option for large corporations that have a large number of business travellers and need to keep track of their T&E expenses. The finance team can set spend limits, easily track employee spending, and monitor compliance with corporate credit cards. Moreover, they can avoid the time-consuming task of manually reconciling transactions. Employees, on the other hand, benefit because they no longer have to spend money out of their own pockets and wait for reimbursement.
- Customer Loyalty Programs & Ideas (+Top Rated Programs in 2021)
- Expense Management: Definition & 13 Best Expense Management Software
- BREAK EVEN CALCULATOR for Social Security and Mortgage (+ Best Options)
- 7 Practical Budgeting Tips to Save Money
- Advantages of E-Commerce: How to Leverage them!!!
FAQ’s On Company Credit Card
Can a Limited Company Get a Credit Card?
Any type of company can apply for a credit card, be it a sole trader or limited company. Furthermore, having a good credit score can provide you with additional benefits such as longer interest-free periods, reward points, or cash back.
What Are Company Credit Card Called?
These cards, also known as commercial credit cards, can help employees (and employers) manage expenses more easily.
Does a Company Credit Card Affect My Credit Score?
If you have a company credit card, your credit will most likely be straightforward. Although the issuer may check your credit before issuing you a card, the card’s activity is reported on the organization’s credit report.
Who Needs a Company Credit Card?
If you need 75 to 100 employee credit cards or more, issuers recommend considering a corporate credit card with no restrictions because those cards offer more robust tracking tools.
Can I Pay My Employees With a Credit Card?
Employees have rights to certain legal protections. First and foremost, an employee must agree voluntarily to be paid by electronic debit or credit card. An employer cannot compel an employee to accept this payment method under the law.