Many businesses, both large and small, utilize company-issued credit cards as a way for employees to complete small purchases or pay for other business-related expenses. In order to reduce the possibility of misuse, well-defined policies for card usage should be communicated to employees and their supervisors. These policies should address issues such as appropriate usage, security, limitations and review procedures.
Employees selected to receive business credit cards should be held responsible for the security of the card, as well as the privacy of company-related information. This responsibility should include keeping the card in a secure location, protecting the card personal identification number and reviewing statements for fraudulent activity. Company credit cards should never be used by anyone other than the cardholder. Lost or stolen cards should be reported to the card issuer and the company as soon as possible.
Company credit cards should include spending limits in accordance with the anticipated needs of the employee. These limits should be communicated to the employee, at the time of issuance, and strictly observed. Employees should ensure that usage does not exceed this limit or incur over-limit penalties or fees. Company credit cards should never be used for cash advances.
Employees should be held responsible for regular usage reports to the designated supervisor. These reports should include a detailed explanation of individual charges, original receipts and appropriate company accounting codes. This information should be attached to the applicable monthly statement and submitted with enough time to avoid late payment fees.
Unless included as part of an employee compensation package, personal usage of a company credit card should not be permitted. Personal usage should be defined as any charges not directly related to the operation of the business or related expenses. Personal usage in an emergency situation should require additional explanation and immediate repayment to the company.
Review of employee credit card usage should be conducted on a regular basis. This review should be conducted by both the employee's immediate supervisor and a member of the business accounting department. The employee's supervisor should be held responsible for determining usage as applicable and appropriate for the employee's job responsibilities. The accounting department should ensure that payments and credits are processed properly and usage limits have not been exceeded.
- Photo Credit Jupiterimages/Comstock/Getty Images
Company Fuel Card Policy
Fuel cards with a clearly stated policy can help a company control and track costs. Cards can prevent fraud, encourage fuel efficiency...
How to Issue Credit Cards
Credit cards can be a great convenience to your customers. If you have a sufficiently large customer base, issuing a credit card...
How to Use a GM Card Rebate
Employees and suppliers of General Motors with one of the company’s branded credit cards can earn money to spend on a new...
How to Handle Credit Card Misuse Among Employees
Many companies issue credit cards to employees for various purchases, including office supplies, business-related meals and travel expenses. However, at times, employees...
What Is a Credit Card Policy?
Credit cards allow you to easily and quickly make payment without having to worry about using cash or writing a check. Credit...
Are Employees Entitled to Keep Tips on Credit Cards?
It's the end of the day. You've gone out to a nice restaurant and had a good meal with wonderful service. You're...
Credit Card Reimbursement Policies
If your organization has more than one employee, and those employees travel or make purchases for the company on their personal credit...
Examples of Incentives for Employees
Whether you manage an international corporation or a small family business, your employees are your company's lifeline. Providing incentives for employees can...
Business Credit Card Policy & Procedures
When you decide to issue credit cards to certain employees you need to institute rules and regulations governing the use of those...