When used wisely, corporate credit cards can definitely help businesses achieve professional goals and personal benefits at the same time. Conversely, this can lead to a corporate free fall when misused.

Corporate credit cards are different from both personal and small business credit cards. These are offered only by a few issuers. Typically, such accounts are established by businesses through the use of a banking relationship or through an agreement negotiated directly with the card issuer. To develop this type of relationship, the credit of the company will be considered.

Companies can give their employees corporate credit cards to pay for business-related expenses, which are often related to travel. Although it is often issued in the name of the company, keep in mind that it can also show the name of the employee who owns the card.

They are classified into 2: individual payment cards and company payment cards. Those who opt for individual payment cards will be responsible for submitting their own expense report. In addition, they will pay directly to the issuer any charges. On the other hand, the employer will pay the bill for all changes sanctioned by the company with the company’s payment cards. But for any unapproved or personal charges, the employee will continue to pay the issuer directly.

Tips when using these cards

Be aware of your company policies – Cardholders should familiarize themselves with the reporting and spending rules provided by their employers. In addition, they should educate themselves on the specific policies of their position or department. They need to know the rates and limits to make charges. Cardholders are strongly encouraged to attend training sessions and get updated on policies.

Learn to avoid cheating – In fact, there are many pitfalls that cardholders should avoid. These will include unapproved charges that can end up hurting your wallet and combining personal spending with business spending that can put you on a collision course with management.

use your common sense – The lack of common sense is one of the greatest dangers of having corporate credit cards. Before you slip it in, ask yourself if said expense is directly related to your job.

Always secure your card – Be sure to keep your card in a safe place to avoid theft or loss. Immediately after noticing that you have lost it, report it to the authorities. This will help prevent fraudulent charges. Cardholders should be aware that when they lose their card, a new card or account number can be provided immediately during emergencies.