What is a corporate card and how does it work?
When it comes to managing company expenses, corporate cards linked with tracking and controlling features have become the go-to choice for most organizations. Corporate card programs are coming out on top as one of the best options for businesses to give their employees the liberty to spend while proactively controlling their budgets.
What are corporate cards?
A corporate card is a credit card issued by a company that is provided to its employees. These corporate credit cards can be used by a worker to carry out business expenses such as corporate travel, hotel and lodging, subscription payments, and so on.
The major benefit of using these cards is that they allow an employee to make relevant and necessary expenses without having to spend directly out of their account. They no longer have to worry about filing reimbursements and waiting for weeks and months to get their claims.
How do corporate cards work?
Corporate credit cards are generally a part of a corporate card program that offers companies the ability to issue individual cards for all their employees. These cards are connected to a credit line from the provider. The credit limit that each company gets for their cards is decided based on their financial eligibility and as per the card program that they choose.
Once the company cards are issued and delivered for each employee that the organization requested, they must be activated as per the provider’s system requirements. For Volopay cards, the activation process is as simple as logging in to the mobile app and entering the activation code that you received along with your card.
Looking for corporate cards to meet your business needs?
Factors to consider when opting for corporate cards
When choosing a corporate credit card provider, check whether you are getting both virtual and physical cards. In this day and age, it should not even be a question. Yet, some providers may not offer virtual cards. Having the facility to use both types of cards is a dynamic feature that gives an employee the ability to spend wisely.
The last thing you want is employees having complete access to your entire budget and spending it rashly on expenses. This is what often happens with traditional corporate cards. You should choose a corporate card program that allows you to set limits on how much can be spent through each credit card as is the case with business debit cards.
Setting payment limits is one form of control. But traditional employee debit cards are also prone to spending on unnecessary expenses without prior approval or confirmation from major stakeholders. Select corporate cards that give you the ability to create and set up custom approval workflows.
If corporate cards are meant to make managing expenses easier, the accounting of all these transactions should also be simple. All the tracking and reporting of expenses made through cards must happen in such a way that can easily and automatically sync with your accounting software.
Do not choose a corporate card program that does not give you the functionality to track and control how your money is being spent by employees. Real-time visibility over each transaction from every card allows the finance department to monitor and keep track of all expenses so that there is complete transparency.
While you want your employees to have the freedom to make spending decisions, there will be certain expenses that are not allowed as per most company expense policies. To enforce these rules, your corporate card system should have the option to block specific merchant category codes and stop transactions from such vendors from being executed.
What are virtual cards?
Virtual cards put simply are corporate cards that don’t have a tangible/physical form. Business virtual cards are used for online purchases. They function in the same way any other credit card would work, except that they are not usable for physical in-person purchases.
A virtual credit card exists digitally in the software system of the corporate card provider that you select. It makes sense for a business to get virtual cards when employees who need to carry out online purchases are spread out in different countries. This makes it easier for an employee overseas to get immediate access to a corporate card without any delay.
Spend smarter with virtual cards
Issue individual virtual cards
A great benefit of choosing Volopay’s corporate credit card program is that you get to create unlimited virtual cards for each employee who is a part of the platform. The ability to issue virtual cards with no limitations helps you manage expenses in a versatile way as per your needs.
Manage your subscription easily
Since you can make unlimited virtual cards, you can create a card for every subscription that your company uses and assign it to the employees who deal with the particular subscription. This way, the virtual card dashboard on Volopay pretty much becomes a way to manage payments for all your subscription services.
Request for funds
Using the Volopay mobile app or the dashboard on your computer system, employees can easily request additional funds whenever required. All of this happens in real-time making the process of getting funds smoother than the traditional approach where it took weeks for an employee to receive the requested amount.
Allocate budgets as per departments
Virtual cards that your employees use won’t directly utilize the credit from your Volopay balance. You will get the option to create separate budgets for each department in your company. The cards will then be assigned to a particular budget for spending purposes. This way you get deeper control of your company funds.
Set multi level approvals
To ensure that employees are complying with the company’s expense policy, you can set up multi-level approval workflows. You can set custom ranges of the amount being spent through a card that will trigger the need for approvers to approve a transaction before it is executed.
Earn cashback
Volopay virtual cards give you anywhere between 3 to 5% cashback on your international spending, depending on the plan you choose. The cashback you earn is added to your dashboard and can be redeemed at any time as part of your balance on Volopay to use for other expenses.
Freeze and block corporate cards
If you feel like your card data has been compromised due to entering it on a site, then you can temporarily freeze or permanently block the card through the Volopay dashboard. This way, no money from your budget will be at risk of further fraudulent activity.
Single & recurring payments
Virtual cards are a great option when you want to purchase something just once or want to create recurring payments. For one-time purchases, you can set the expiry date for a virtual card as low as one day. For recurring payments like subscription services, you can set the expiry date till the time you’re going to use the service so that you don’t overspend. These expiry dates are modifiable as long as the cards have not already expired.
What are physical cards?
Physical cards are quite simply the same as traditional credit or debit cards. When you select Volopay as your corporate card provider, you get the option to issue a physical card for every employee. Having a physical company card with you at all times is quite beneficial. It allows an employee to make smart spending decisions and not have to rely on their funds.
Since no out-of-pocket expenses are made by employees, it eliminates the need for submitting expense reports and all the stress that comes with reimbursements.
Why should you choose physical card for your business?
The benefit of these physical corporate cards over virtual cards is that they can be used for both in-person as well as online transactions. These company cards are essential for traveling sales members who need constant access to funds for client visits, business dinners, commute, and so on.
You might come across many merchants, stores, restaurants, etc. that accept common wallets and payment methods like Google Pay and Apple Pay. To make contactless payments through these apps, you can simply add your Volopay corporate card to both these apps.
Employees can use the Volopay corporate card as a travel and expense card for business trips. Depending on the company expense policy that you have set up, employees can use their cards to make purchases for entertainment and dining purposes. You can also use it for foreign transactions wherever VISA is accepted.
As your company scales up, new employees will be joining your organization. To issue corporate credit cards for them, all you have to do is head to your admin dashboard, fill in the necessary details and submit the request for new cards.
Giving your employees a premium company card helps them feel more trusted and become a deeper part of the organization. It is also a great way to promote your company culture.
When an employee is traveling to another country and has to make a card payment or needs to withdraw cash from an ATM, they can do this using their physical Volopay cards. The admin from your company on the Volopay platform must simply enable this setting through the dashboard.
Get full control of your business expenses with corporate cards
Get a business line of credit
As your organization starts scaling up, you realize the need for business credit. Carrying out daily business transactions on a debit basis can be risky if something in operations goes wrong. Availing business credit provides companies a safety net to carry out operations and also improves the financial health of the business if all dues are paid on time.
Flexible credit for every business
A great part about choosing Volopay as your credit partner is the immense flexibility we provide for a business to get credit. We don’t have a fixed threshold credit eligibility but rather we check the financial health and stability of your company to decide how much credit we can offer you.
Faster approval process
In the past, getting credit traditionally was a lengthy process. Volopay provides your business with a hassle-free credit line that you can easily apply for online. Our seamless application and approval process helps your company start using credit instantly for all your corporate card expenses and money transfers.
Minimal hassle
A customer success executive will be assigned to your account who will help you with the entire process. This ensures that you face no hiccups to avail credit and always have someone from our side to clarify any doubts or queries.
Smart corporate credit cards
The credit you get through Volopay can be used for the Volopay corporate credit cards. This saves you the trouble of connecting your account with our cards service and getting it to work together. This makes corporate cards a complete end-to-end solution without your business having to interfere in between.
Earn rewards
Every time you make an online expense through Volopay, you get anywhere from 3 to 5% cashback depending on the plan you have chosen. You are also incentivized with early invoice payment discounts for your vendors when you transfer money through Volopay.
Build business credit score
Lastly, using business credit is also important as it helps improve your credit score. This will help your business develop a good reputation in the eyes of financial institutions which is great for future purposes like trying to get a business loan.
Keep your personal and business expenses separately
Getting business credit is also helpful to keep personal and business expenses separate. Business owners tend to use personal credit cards for business purposes which can not only hurt their credit score but also hinder the business entity from building its creditworthiness.
Easy real time expense reporting
Since every expense is tracked and recorded, you can constantly check the difference between planned budget utilization and the actual amount that is being used. This gives a good insight into whether the budget forecasting was accurate or tweaks need to be made in the future.
Every transaction that is made through a Volopay corporate card will be recorded in real-time on your dashboard. This gives finance teams the visibility to control and rectify anything fishy immediately. It also gives you the ability to measure expenses on a day-to-day basis and make any changes to budgets if required.
Your company’s financial controller or whoever is an admin on the Volopay platform can easily access, update card settings, and approve requests from both a desktop as well as our mobile app. In situations where the admin cannot access a laptop/desktop, they can still manage the corporate cards using their smartphones.
How to manage corporate card expenses?
Set limits on spending
Another way to manage employee spending through corporate cards is by setting custom limits for each card. You can easily do this for each physical and virtual card that you have issued through our platform.
Provide corporate cards for employees
The great part about our corporate card program is that you get to choose how many employees get a company card. There are no minimum amount of employees required for you to get Volopay corporate credit cards.
Employees should be aware of the expense policy
While making sure that all your employees are aware of the guidelines in your company expense policy, you don’t get real control unless you can enforce these rules. But with Volopay, you can make sure that no expenses outside the ones that the company policy allows are made thanks to approval systems. You can also directly block certain merchant category codes to avoid any transactions being processed with them.
Monitor employee spending
Have your employees submit expense reports when they make payments using their corporate cards. You can assign approvers to approve or reject expense reports that come in. This way, you can monitor your employee spending and pinpoint any card misuse. Monitoring your employee spending will also discourage them from misusing their cards to begin with.
Benefits of using Volopay’s corporate cards for your business
Set custom controls
Spending limits on each card that can be modified at any time and custom approval workflows ensure that the business is always in control of how the budget is being utilized throughout all the departments.
Enhanced security
The ability to instantly freeze or block a card from your mobile app makes using Volopay corporate cards a more secure option than traditional business credit cards. Virtual cards are also more secure than physical cards as they are not directly linked to any bank account.
5% cashback
Based on the plan you have chosen with us, you get up to 5% cashback on all international expenses. This helps you earn as you spend and redeem these rewards whenever you want into your Volopay balance.
Simple and easy to use
Your Volopay corporate cards can be used to make business expenses as soon as you receive them. Like any other cards, all you have to do to use them is swipe your card in-store or enter your card details for online payments. Expense reporting is equally easy and can be done on the go using Volopay’s mobile app, which is tied to your corporate cards.
Maker checker
Volopay corporate cards use the maker checker approach. This ensures that there are no chances of expenses that are not allowed. One person might make a mistake, but when there is an expense maker and an expense checker, or in this case multiple checkers, then you can be sure that all transactions follow the company policy.
Sync all transactions with accounting software
Once the expenses are recorded on our platform, you can easily sync them to your accounting software. Our integrations support some of the most widely used accounting tools including Xero, Quickbooks, Deskera, Netsuite, and MYOB. This ensures that you have no problems seamlessly moving data from your Volopay ledger to your entire company ledger and closing the books of accounts faster.
FAQs
Using corporate credit cards to make your business expenses means that your employees don't have to make out-of-pocket expenses and wait around for reimbursement. Issuing cards to your employees will empower them. With designated cards for business expenses, you can also set spending limits, have multi-level approval policies, and earn rewards to cut back on your spending.
You can manage and control your business spending better with corporate cards. They also often offer other perks such as easy accounting integration and no personal guarantees when it comes to business expenses. Some corporate card issuers will also have rewards and a cashback system that could benefit your company and its spending.
Businesses should opt for corporate cards when many employees need access to funds on a day-to-day basis for their tasks. Common examples include marketing teams who need budgets for advertising, software subscriptions, etc., and sales teams for client visits, stay at hotels, and travel expenses.
A physical card can be used for both physical in-store and online transactions, whereas a virtual card can only be used for online purchases. When it comes to safety and security, a virtual card is a better option as there is no chance of losing it. It is also more secure as it is not directly connected to a bank account; so even if the card details are compromised, the hacker won’t be able to withdraw any money.
If you’re going to pay back employees in the form of reimbursements, you might as well give them smart corporate cards. Most organizations are worried about employees making expenses that are not allowed.
When you choose to issue Volopay cards, you don’t need to worry about these issues. We call them smart corporate cards for a reason. You get to choose the spending limit of each card and also set custom approval workflows.
By doing this, you not only maintain control over your budgets but also avoid the lengthy and cumbersome process of reimbursements.
Based on the selected plan, you will receive cashback on your online card expenses that will be shown to you on your dashboard. You can redeem this amount at any time as part of your balance and use it for other card expenses.
An AMEX card will have a higher credit limit but it is also tougher for most businesses to acquire. While AMEX also offers employee cards, you probably won’t find the same level of tracking and real-time control that you get with smart corporate cards with Volopay.
If you aim to optimize the utilization of your budget to the highest efficiency, then you should choose a corporate card program such as the one offered by Volopay.
A traditional business credit card does not offer the same level of control and tracking that is offered by a smart corporate card provider like Volopay. Plus, you only get to issue one business credit card for your business entity rather than having multiple cards for your employees.
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