Companies issue virtual debit cards or credit cards to their employees, which allows them to make purchases on credit. At the end of each month, companies must clear all the payments and ensure that the employees will be able to spend depending on the balance available on the corporate card.
What Are The Various Types Of Corporate Cards?
There are three specific types of cards available in the market at present, and those are as follows:
1. Virtual Cards:
A virtual debit card is similar to a physical or digitized card that is easy to issue. For example, companies should track employee expenses as per their business growth. Sometimes, giving physical corporate cards can become expensive and also cumbersome. Therefore, issuing virtual cards makes it easy to track all business-related transactions. In addition, there is significantly less chance of losing the card, and it provides best-in-class safety and security.
2. Corporate Liability Cards:
The repayment responsibility of a corporate liability card lies with the company that issues the card to its employees. Therefore, employees will get specific financial relief since they will not be responsible for repaying the amount. Though the card makes it easier for an organization to track payments and pay the dues directly, credit limits and guidelines are associated with it.
3. Individual Liability Cards:
An individual liability card is handy for the employees while making payments to the card issuer. In this case, individual cardholders can ask for reimbursements from the company for any business expenses. Most importantly, companies may outline the costs and card limits for each fee that require invoices to clear the payments.
Benefits Of Holding Corporate Cards To Run A Small Business:
1. Get An Overview Of Expenses:
A corporate card may help business owners gain better control over business expenses. It gives real-time visibility of spending and sets limits on the account that employees can spend. Moreover, it allows spending on specific categories with selected merchants to increase the overall transparency of the businesses.
2. Safety & Security:
A corporate card provider always ensures the safety and security of its users. It comes up with top-notch security options that make it convenient for employees. They also take care of lost cards or any compromised information; therefore, employees can freeze, block, or cancel their cards instantly if they face fraudulent online transactions.
3. Transparency in Expense Management:
Nowadays, expense management has become easy and more transparent with corporate cards. Moreover, card providers allow employees to integrate their corporate debit or credit cards with accounting and expense management systems. It also makes the whole process straightforward, smooth, and hassle-free.
4. Travel Benefits:
Corporate cards come up with some excellent features that include travel benefits for employees who need to travel a lot for business purposes. Benefits include flight upgrades and lounge access, which may also provide extra hotel benefits during their stay.
Apart from all the benefits mentioned above, corporate cards also offer some other exciting reward programs. For example, it could reward points, cashback, and discounts on bulk spending. Therefore, using these perks carefully can help employees save money in the long run.