Corporate expense cards: advantages and disadvantages

Company expense cards are a convenient payment instrument that allows the cardholder to use funds from the company’s account to pay for goods and services necessary for business. The card can pay for representatives, business, or any other expenses authorized by the company’s financial department. Expense cards are an excellent substitute for the company’s checkbooks, as they provide 24/7 access to the corporate account regardless of the bank’s operation.

Purpose of a corporate expense card

A corporate card is linked to the account of a legal entity. It can be used to pay for the following expenses:

● Household expenses. You can buy office supplies, office equipment, and machinery;

● Overheads. Rent and maintenance of premises, depreciation of fixed assets, advertising and marketing expenses, telephone and Internet charges, information, consulting and legal services;

● Hospitality. You can pay by card for dinner with partners, organization of corporate events;

● Transportation. Purchase of train tickets, airplane tickets, and car rental;

● Business travel. Payment for hotel rooms and other expenses incurred by an employee on a business trip.

In addition to non-cash payments, cash can also be withdrawn from these cards. No wages or social benefits are charged on such cards. Thus, a corporate expense carat is an analog of a certain amount of money issued to the employee by the financial department under the report. The card can be debit or credit. A limit can be set depending on the holder’s position and the amount he needs to fulfill his job description.

Advantages of corporate cards  

Corporate expense cards can significantly reduce the time it takes to receive funds to fulfill job obligations. For example, there is no need to contact the finance department to pay for office supplies to receive an accountable amount. The purchase can be paid for with a card, or cash can be withdrawn from any ATM. The means of payment can be used not only in the country where it was issued but also abroad. Conversion takes place automatically at the most favorable exchange rate. Corporate expense cards have other advantages:

● corporate cards can be debit and credit, physical and virtual;

● cards can be used to withdraw money, pay for goods and services through POS terminals, and deposit funds to the account through terminals and bank cash desks;

● control over employee expenses reaches a new level. All transaction information is recorded online. Employees do not need to collect receipts to make a report; they only need to upload their photos to a particular mobile application. In the program, it is possible, with a few clicks, to form a detailed issue for each card;

● there are no risks associated with transporting large sums of cash. The company does not need to incur expenses related to encashment. If the card is lost or stolen, it can be blocked, and the funds on the account will be safe;

● the card can be used to pay for purchases in offline outlets and online.

When an employee is on a business trip or away from the office and urgently needs funds to fulfill his job duties, the card always lets him prompt in making decisions. Can you coordinate with the finance department to increase the card limit? The card status can be easily monitored not only through the self-service portal but also through SMS alerts.

Corporate cards can increase brand recognition. For this purpose, it is enough to use WhiteLabel solutions. This service will give the payment card an exclusive design with corporate symbols. Such cards draw the attention of others and increase interest in the company.

Disadvantages of corporate cards

The disadvantage of corporate cards is that to manage them, you need to go to a banking institution. It can take up some time and slow down the speed of decision-making. Business Wallester’s multi-functional platform makes getting rid of this disadvantage possible. It is a platform for issuing and managing corporate cards for any purpose. Such platforms can set card limits, quickly control expenses, and manage budgets. They can be easily integrated with the software already available in the finance department and allow automatic reporting.

Corporate expense cards simplify the work of their holders and the finance department, optimizing its processes and improving business performance as a whole. The card program can be launched by any company, regardless of its size and field of activity.