Evaluating corporate card programs

Efficient expense management is vital for any company’s bottom line. Corporate card programs offer a solution to streamline spending, improving financial oversight while empowering employees with purchasing capabilities. But such programs can also be complex, with various options and features that cater to different business needs. So, how can you choose the right company card?

In this guide, we’ll walk you through the evaluation process of corporate card programs, outlining essential features and potential pitfalls while emphasizing best practices for maximizing benefits and smoother financial management. Let’s dive in.

What are corporate card programs?

Corporate credit card programs are financial tools specifically designed for business use, enabling companies to streamline expense management and simplify the procurement process. Typically offered by banks or fintech companies, these specialized programs provide organizations with both physical and virtual company cards that authorized employees can use for business-related transactions. These are all great reasons to issue a corporate card for employees. 

Choosing the right corporate card program for your business

With so many corporate card programs boasting different features and benefits, how do you find the perfect fit for your business? Let's break it down:

• Travel and Entertainment (T&E) cards are tailored for employees who incur travel and client entertainment expenses.

• Purchasing cards (P-Cards) streamline the procurement process for business supplies and services, allowing for efficient transaction tracking and control. 

• Business credit cards, which are a more general option, are useful for a variety of expenses and often offer corporate card rewards, like points or cash back. 

Read more on the blog: 41 credit card statistics for 2024

Must-have features for your corporate card program

When choosing a corporate card program that’s a good fit for your business, ensure it has features that streamline your expense management and enhance financial control. Here are some must-haves:

• Expense management software integration Allows automatic tracking and categorizing expenses, making it easier to monitor spending and manage reports.

• Customizable spending limits: Being able to set individual spending limits for employees gives businesses better control over expenses, ensuring that company funds are utilized according to budgetary constraints.

• Advanced reporting tools: A corporate card program should offer comprehensive reporting features that provide realtime insights into spending patterns and help identify areas for cost savings.

How corporate cards can transform your business spending

Several key benefits come from implementing a corporate card program. Here are a few:

• Financial control and oversight: Corporate card programs offer enhanced financial oversight, allowing businesses to monitor and control employee spending in realtime. 

• Streamlined expense reporting: Corporate cards simplify the process of expense reporting for employees and reduces the administrative burden on finance teams by automating the reconciliation of transactions.

• Enhanced security and fraud protection: Corporate cards are equipped with advanced security features to detect and prevent fraudulent activity. 

Rolling out your corporate card program

Before committing to a corporate card program, take a step back and assess your needs. A thorough evaluation of your current expense management processes will pinpoint areas where a corporate card can truly make a difference.

Needs assessment and goal setting

Here’s what to consider when assessing your needs and setting goals while researching a corporate card program:

1. Financial control: What’s the level of financial control required? Will the company cards have preset spending limits, and how will these align with budgetary constraints?

2. Employee compliance: Consider the ease with which employees can adhere to corporate policies. A corporate card program should simplify compliance, not complicate it.

3. Integration capabilities: Ensure the program can seamlessly integrate with existing accounting systems to significantly reduce manual data entry and potential errors.

4. Rewards and perks: Determine the importance of rewards or cash-back incentives in your corporate card selection.

5. Global usability: For companies with international employees or business trips, a global card program is essential. 

Vendor selection and partnerships

When selecting a vendor for a corporate card program, choose a partner that aligns with your company's needs. Consider the following:

• The flexibility of credit limits and customization options

• Customer support and service levels provided by the vendor

• Fees and interest rates that might affect the overall cost of the program

• Types of rewards offered

• If they offer both physical and virtual cards

Policy development and communication

When developing and communicating a corporate card program policy, take these things into account:

1. Eligibility criteria: Define who qualifies for a corporate card, often based on their role or position within the company.

2. Spending limits and allowed expenses: Establish clear limits to control expenses, monitor usage, and the type of expenses allowed to be charged to the corporate card.

3. Expense reporting and approval process: Outline the procedures for submission of receipts and expense reports, deadlines for compliance, and the workflow for expense approval.

4. Training: Implement training sessions for cardholders to understand policy, proper card use, and protocols for lost or stolen cards and fraudulent charges.

Employee training and support

Effective employee training and support are the backbone of a successful corporate credit card program. Here are a few key factors to consider:

Is the program user-friendly? Employees should be able to quickly understand how to use both physical and virtual cards, reducing the need for extensive training.

Are training materials provided? The best corporate cards come with comprehensive support materials, such as user guides and online training modules, that can be accessed by employees at any time to help them make the most out of their company cards.

Maximizing your corporate card program

Once your corporate card program is in place, the next thing to consider is the various aspects that can impact both its utility and security. 

Establishing clear usage policies

Developing clear and concise usage policies is crucial for maintaining control over a corporate card program. A clear set of guidelines ensures cardholders are aware of the standards to which they are held, preventing misuse and simplifying the reconciliation process. 

Regular monitoring and auditing

Consistent monitoring and auditing are essential for identifying fraudulent activity and ensuring policy compliance. Protect the financial integrity of your company while instilling a sense of responsibility among employees by setting up: 

• Automated alerts for unusual spending patterns

• Monthly reconciliations by cardholders

• Periodic audits by finance teams

Fostering a culture of compliance

Promoting a culture of compliance within an organization is vital to the success of a corporate card program. Training sessions, regular communications, and the exemplary use of cards by leadership can reinforce the importance of following established usage policies. 

Navigating corporate card program pitfalls

In the busy chaos of running a business, it’s easy to get caught up in the day-to-day and forget about your corporate card program once it’s launched. That’s why a careful selection of a corporate credit card program is the first step to mitigate risks. Yet, even with the best corporate cards, challenges may arise. 

Preventing and detecting fraud

Preventing and detecting fraud within a corporate card program requires a proactive and systematic approach. Protect your company with:

• Realtime alerts: Immediate notifications of transactions can help catch fraud the moment it happens.

• Custom spending controls: Limit spending to specific vendors or categories to reduce exposure to unauthorized purchases.

• Regular audits: Frequent and random checks can deter fraudulent behavior by employees.

• Employee verification protocols: Ensure each card is linked to a verified employee to maintain accountability.

Managing employee misuse

Employee misuse of company cards can be both intentional and accidental. That’s why a clear and well-communicated policy is vital, along with:

• Spending limits: Set per-transaction or monthly limits tailored to the employee's role.

• Mandatory training: Conduct regular sessions to educate employees on policy and the consequences of misuse.

• Expense validations: Require receipts and explanations for all transactions to discourage personal use.

Handling lost or stolen cards

A lost or stolen corporate card isn’t just a nuisance; it can pose significant risks to corporate security. To quickly handle a situation like this, set immediate reporting protocols into place for employees to report lost or stolen cards. Ensure cardholders and admins can instantly freeze or cancel a card via an online platform or mobile app, and choose a vendor who will quickly issue a new card to minimize business disruption.

Ensuring data security and privacy

Data security and privacy play a crucial role in protecting the financial and personal information involved in corporate card programs. To solidify security, make sure there are:

• Encryption technologies: Secure transmission of data ensures that sensitive information is not intercepted.

• PCI compliance: Adherence to the Payment Card Industry Data Security Standard is a must for minimizing risk.

• Access controls: Only authorized personnel should have access to card program data, with strong authentication measures.

Try the Expensify Visa® Corporate Card

The Expensify Card is a corporate card solution designed to meet the needs of small business owners, global corporations, and those in between. Cardholders benefit from cashback on all purchases, making it one of the best corporate cards for rewards. Additionally, the program offers robust spend control features, allowing companies to easily manage their budgets and prevent unauthorized expenses before they happen.

The seamless automatic expense tracking and reconciliation process are only some of the many robust strengths of the Expensify Card. These features simplify the reporting and submission procedures, significantly reducing the administrative burden on employees and finance teams alike.

Expensify provides both physical cards for in-person transactions and virtual cards for online purchases, ensuring comprehensive and convenient coverage for all types of company expenses. 

Here’s a snapshot of the Expensify Card advantages:

• Rewards: Get up to 2% cash back on US purchases: Get 1% cash back with every swipe on US purchases — no minimums necessary — and 2% back if you spend $250k+/month across cards.

• Spend control: Enhanced spend management tools.

• Expense tracking: Automatic categorization and reconciliation.

Try the Expensify Card today, and revolutionize the way your business handles expenses.

FAQs about corporate card programs

• Do they run your credit for a corporate card?

  When applying for a corporate card program, the need for a credit check can depend on the provider and the structure of the program. Typically, corporate credit card programs under the company’s name and liability may not require individual credit checks for employees who will be using the cards. However, if the card is issued under an individual liability program, where the employee is responsible for the charges before being reimbursed by the company, a credit check might be necessary.

• How does a corporate card work?

  A corporate card is a type of credit card issued to employees by their employer to pay for authorized business expenses. These cards streamline the expense management process by consolidating business-related transactions on a single platform, thereby facilitating ease of tracking and reconciliation. Most corporate card programs also offer various control settings, allowing companies to set spending limits and restrictions on the type of purchases made, thus ensuring adherence to company budgets and policies.

• Does everyone get a corporate card?

  Getting a corporate card typically depends on the role of the employee within the company and the nature of expenses they are expected to incur. Not everyone in an organization will receive a corporate card; it's often reserved for those who travel frequently for business, engage in client entertainment, or have other roles that involve regular business expenses. The decision to issue a corporate card is determined by the company's internal policies and the specific needs of each position.