Purpose:
Corporate credit card is provided to employees to help pay business expenses. The arrangement also facilitates hassle free travel and relieves employees from the risk of carrying cash taken as advance.
Eligibility:
While eligibility depends on company policy, several companies issue corporate credit cards to all sales personnel, heads of departments, and other employees in supervisory positions such as Assistant Manager & above.
(Consulting firms may provide corporate cards to all consulting staff)
Policy:
- One corporate credit card, with no supplementary card, is normally issued to the eligible employees.
[To its senior management team some companies however, issue more than one card and also permit supplementary cards.
Many organizations encourage eligible employees to apply for a credit card in their names, even though the company assists in the application. Since several credit card companies issue lifetime cards free, organizations have started to expect their employees to take the credit card without charges. As a policy therefore, they do not pay for such charges]
- The credit card is usually expected to be used strictly for business purpose. Concerned employees are therefore, advised that only business-related expenses as would ideally be incurred and approved by the company should be charged to the credit card. Employees are also encouraged to charge all business expenses such as those on hotel stay, client entertainment, car hiring and subscriptions and so on, to the corporate card.
- The use of personal credit card for a business expense is not allowed, except where an establishment does not accept the corporate credit card.
- In the event that an establishment does not accept the corporate credit card, employees can use any other means of payment and submit supporting documents of expense for reimbursement.
- Timely payment of card dues lies with the concerned employee. Late payment charges and interest due to late payment, is therefore, to be borne by the employee.
- Loss of the credit card should be reported immediately to the credit card helpline. In case of a failure to report the loss, the concerned employees will be responsible for the settlement of charges at their own expense.
- The company has the discretion to cancel or suspend the card of an individual for any reasons as appropriate, for example, late submission of Travel & Entertainment claims.
Procedure for reimbursement:
Step 1. Employees incurring expenses on the credit card, make payment of their dues as for any regular credit card.
Step 2. Concerned employees file reimbursement claim by creating Expense Report in the prescribed form/software with supporting receipts and charge slips.
Step 3. The department head -the final authority in deciding whether an item of expenditure is of personal nature or not- approves the claim.
Step 4. The claim, on approval, goes to accounts department who pay cash to the employee. Employees are expected to preserve all supporting receipts. In the absence of supporting, accounts will not reimburse the expense on that item.
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