What makes corporate credit
cards the best
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All companies have their own way of doing things – which forms their ‘corporate culture’. Most companies have their own cost structures and their expenses are usually much bigger than an average individual's expenses. Corporate credit cards is one of the payment methods that companies use to take care of their expenses.
What is a ‘Corporate Credit Card’?
This type of credit card is usually provided to its employees by companies to meet their expense needs – it is used on the company’s name by its executives and employees for official expenses. Companies may provide these cards to their employees to pay for various expenses incurred for business purposes. The advantage of providing such cards is that companies can restrict the approved expenses of their employees and trace all expenses easily.
These cards are different from personal credit cards and can be classified on the basis of payment as:
Individual Payment Cards
Company Payment Cards
What features should one look for in a Corporate Credit Card?
Global Acceptance: If your business spans nations, it is always good to choose a card that is accepted worldwide. This type of card helps to ease your employee’s transactions in foreign countries and minimizes the need to carry foreign exchange.
Rewards, Perks, and Incentives: These credit cards usually award ‘reward points’ and ‘incentives’ on specific transactions — a very attractive feature. Exciting offers and gift vouchers bring in additional benefits.
Insurance Cover: A card may provide insurance against many corporate-related risks, such as insurance protection against employees' fraud, travel insurance, and lost-car liability cover. These covers come really handy in times of need.
Expense Management Tools: These tools assist a company in managing expenses in a smarter way. They may be in the form of an efficient expense-tracking system tool for setting up a spending limit, or restricting transactions to only specified merchants.
Emergency Card Replacement: Getting a lost or damaged card replaced within a short period is essential, especially for corporates. 24x7 lost-card assistance is a good feature to have.
Emergency Cash Assistance: In an emergency, this can be a star feature.
24x7 Assistance: 24x7 customer service is a must in today's competitive world. A helpdesk should be always ready to address the needs of the card holder, both individual and corporate, at any time.
High on Card Security: Security is an important issue that should be addressed properly by the card-issuing company. Besides normal security features such as PIN, there are a host of additional security features to make a card more secure.
Anytime Access to Details: All-time access to your credit card’s usage details always helps. The card company should also provide periodic e-statements.
Cost Structure: The fees and penalties structure of a card defines its cost. Low-cost credit cards with good service tend to attract the most corporates.
Benefits at a glance:
The Bottom Line
Corporate credit card can be a very useful tool in the hands for both employees and employers. On one hand, it makes transactions easy for employees, and on the other, it facilitates business for employers and helps them control expenses. Properly used, this can be a powerful tool for companies.
Disclaimer: This Article is for information purpose only. The views expressed in this Article are personal and do not necessarily constitute the views of Kotak Mahindra Bank Ltd. and its employees
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