Corporate credit cards are one of a kind within the overall card universe where an employer provides credit card to its employees, especially those in the field roles, to pay for legitimate business expenses. Usually, the card is issued in the name of the employer but individual cards can carry the name of employee as well. In this article, we’ll discuss certain dos and don’ts for employees regarding corporate credit cards.
#1: DO: Familiarise yourself with the policies:
Pro-actively familiarise yourself with things like:
Employers generally put up online training modules on this topic on the intranet and it’s essential you peruse these thoroughly.
#2: DO NOT: Charge personal expenses to the corporate card:
Only use your corporate credit card for business expenses. When in doubt on whether an expense qualifies as a business or a personal expense, or if it is a mix of both, let the company’s policy guide you or speak to the approver in advance.
Your accounts team will scan each and every line item of expense on your card statement and if it is found that you’ve charged personal expenses to the corporate card, it can become an integrity issue and can cause a terrible loss of face in front of your boss & team. In extreme cases, it can even lead to a termination. In case you discover that you’ve inadvertently used the wrong card, it’s essential you know in advance the protocol to be followed in such cases and pro-actively inform your approver of the same.
#3: DO: Protect the card from theft & damage:
As far as employee’s liability is concerned, a corporate card does not differ materially from a personal card. An employee must exercise as much due diligence while using a corporate card as he does with his personal card.
Some precautions include:
Remember: If you receive a notification of a transaction carried out via your card that you yourself did not do, you must immediately call customer care and block your card to prevent any further loss or fraudulent use.
#4: DO NOT: Be ignorant of the implications on credit score
Much like personal credit cards are tied to an individual’s credit history, corporate credit cards are tied to the company’s credit history. Hence, any default or delay in payment on your part can affect the credit score of your company. Also, at the time of giving out the credit card, the employee’s personal credit scoring is also taken into account. Hence, it is important that employees should exercise prudence in using corporate as well as personal credit cards to avoid any damage to the credit scores of employer as well as their own.
Related: How to come out of credit card debt
Corporate credit card is a good expense management tool for companies as well as employees. Though it comes with a host of benefits like increased credit limit, reward points and priority tie-ups with hotels etc., proper education and judicious use will ensure that one is able to extract the maximum value out of it.
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QUOTE OF THE DAY
While credit cards come with a host of benefits, they must be used carefully, and never in these situations!
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