Guide to corporate credit card management

Managing corporate credit cards effectively is crucial for any business. Corporate credit cards streamline expenses, enhance tracking, and offer financial flexibility.


However, without proper management, they can lead to inefficiencies and financial pitfalls. To avoid these pitfalls, you must understand the essentials of corporate credit card management, ensuring your business maximizes the benefits while minimizing risks.

What are corporate credit cards?

Corporate credit cards are financial tools issued to the employees of a business so that they can cover work-related expenses without spending their personal funds. Unlike personal credit cards, these are designed to simplify expense management for companies.


While most companies will limit the type and amount of expenses an employee can make using these cards, generally speaking, employees can use corporate cards for business expenses like travel, office supplies, client meals, and other business-related purchases. 


The charges are typically billed directly to the company, and the company is responsible for payment. This system aids in accurate expense tracking, easier auditing, and improved cash flow management.

spend analytics

Types of corporate credit cards

Corporate credit cards come in various forms, catering to different business needs. The two primary types are individual liability corporate credit cards and corporate liability corporate credit cards.

Individual liability corporate credit cards

With individual liability corporate credit cards, the responsibility for payment lies with the employee. The card is issued in the employee’s name, and they must pay the balance each month.


The company then reimburses the employee for approved expenses. This type ensures employees are accountable for their spending, reducing the risk for the company.

Corporate liability corporate credit cards

Corporate liability corporate credit cards place the payment responsibility on the company. The card is issued in the company's name, and the company pays the balance directly.


This type simplifies the reimbursement process and enhances control over expenses. However, it requires robust monitoring to prevent misuse and ensure compliance with company policies.

Benefits of corporate credit cards

1. Increased spend control and visibility


Corporate credit cards provide businesses with greater control over employee spending. Detailed statements and online account management tools allow companies to set spending limits, monitor transactions in real time, and flag unusual activity. This level of control helps prevent overspending and ensures that expenditures align with company policies.


2. Streamlined expense management


Managing expenses can be a daunting task, especially for larger companies with numerous employees making frequent transactions. Corporate credit cards streamline expense management by consolidating all expenses into a single system.


This centralized approach reduces the administrative burden of tracking and approving individual expense reports, making the entire process more efficient.


3. Cashless transactions


Corporate credit cards eliminate the need for employees to carry large amounts of cash for business expenses. This not only enhances security but also reduces the risk of theft or loss. Cashless transactions are more convenient and can be easily tracked, ensuring accurate financial records.


4. Employee convenience


Employees benefit from the convenience of using corporate credit cards for business-related expenses. They do not have to use personal funds and wait for reimbursement, which can be particularly beneficial for frequent travelers.


This convenience can improve employee satisfaction and productivity, as they can focus more on their work rather than managing their expenses.


5. Improved data integration


The best corporate credit card programs often integrate seamlessly with expense management software and accounting systems. This integration allows for automatic data transfer, reducing manual entry errors and ensuring that financial records are up-to-date. Improved data integration also facilitates better financial analysis and decision-making.


6. Access to capital


Corporate credit cards provide businesses with access to a revolving line of credit. This access to capital can be crucial for managing and improving cash flow, especially during periods of fluctuating revenue or unexpected expenses. Companies can use this credit to cover short-term financial needs without depleting their cash reserves.


7. Reduced paperwork


Corporate credit cards significantly reduce the amount of paperwork associated with expense reporting. Digital records of transactions replace traditional paper receipts and expense forms.This reduction in paperwork streamlines the expense reporting process, saving time for both employees and the finance department.


8. Easier expense reporting


Corporate cards help businesses by making expense reporting much more straightforward. Employees can easily categorize and submit expenses through online platforms, and managers can quickly review and approve these reports.


The streamlined process ensures timely reimbursement and accurate financial tracking, reducing the administrative workload and improving overall efficiency.



These benefits highlight how corporate credit cards can enhance your expense management. To learn more about selecting the right one for your business, check out our blog on choosing the right corporate credit card.

Take control of your business finances with Volopay's corporate cards

What is corporate credit card management?

Corporate credit card management involves overseeing and controlling the use of corporate credit cards issued to employees for business-related expenses.


It ensures proper use, accurate tracking, and timely payment while preventing misuse and optimizing financial processes.


All of this is done through a systematic process and structure often aided by expense management software to keep track of things and organize important system elements.

corporate cards

Things to consider before selecting corporate credit card programs

1. Payment options and security


Corporate cards are the most modern tool for making payments. These can include in-store as well as online fees. The Visa corporate card should support various modes of payment like PayPal and Google Pay. Having your cards protected by authorized companies ensures theft.


2. Seamless customization


The right corporate card program should be flexible enough to incorporate any immediate changes. Since every employee card will have a unique spend limit and diversified expenses, it should allow customization of each card according to different employees.


3. Cost


The most crucial factor before finalizing the right corporate card program is the cost the company has to bear. Apart from the regular charges, there are many other costs associated, which come into light later on.


For example, new card issuing costs, distribution costs, money transfer charges, annual maintenance charges, and more. These costs do not come upfront, so it's necessary to evaluate the company’s spending capacity before taking any action.


4. Integrations offered


The corporate card software should be flexible enough to integrate with other platforms to improve the entire system's functionality. The most common type of integration a company desires is accounting. They require a platform that can easily sync into their accounting or ERP system without affecting other processes and improving the workflow.


Related read : How to choose the right corporate card program?

Ways to keep corporate card spending under control

Implement spend alerts

Setting up spend alerts is a proactive way to monitor card usage. Notifications can be sent for transactions that exceed predefined limits or occur outside of usual business hours. These alerts help detect unusual or unauthorized spending promptly, allowing for quick intervention.

Monitor spending in real-time

Real-time monitoring of corporate card transactions provides immediate insights into spending patterns. This enables finance teams to track expenses as they occur, identify any discrepancies, and address issues before they escalate. Many credit card providers offer online portals or mobile apps for easy access to transaction data.

Provide employee training and support

Educating employees on the proper use of corporate credit cards and company expense policies is crucial. Regular training sessions can help employees understand their responsibilities, the importance of adherence to guidelines, and the consequences of misuse. Ongoing support ensures they have the resources needed to manage their expenses correctly.

Access to selected employees

Limiting access to corporate credit cards to essential personnel reduces the risk of employee corporate card misuse. Only employees with a legitimate need for a corporate card should be issued one. This selective distribution helps maintain tighter control over who can make charges on behalf of the company.

Set an approval system

Implementing an approval system for significant or unusual expenses adds an extra layer of oversight. Requiring managerial approval for transactions above a certain threshold ensures that all substantial expenditures are reviewed and justified, preventing unauthorized or unnecessary spending.

Automate expense reconciliation

Automating the expense reconciliation process can save time and reduce errors. Integrating corporate credit card data with expense management software allows for automatic matching of receipts to transactions, streamlined reporting, and quicker reconciliation.


This automation enhances accuracy and efficiency, ensuring that all expenses are accounted for correctly, making the corporate card reconciliation process faster and more reliable.

Get better control and visibility over your business spends

Benefits of automating corporate card management

1. Reduced administrative burden


Automating corporate card management significantly reduces the manual tasks associated with expense tracking and reporting. Automation handles repetitive tasks such as data entry, receipt matching, and transaction categorization. This reduction in administrative workload allows finance teams to focus on more strategic activities, improving overall productivity.


2. Time and cost savings


Automation streamlines expense management processes, leading to substantial time and cost savings. Employees spend less time on manual expense reporting, and finance teams can quickly review and approve transactions.


The efficiency gained through automation translates into reduced labor costs and faster reimbursement cycles, enhancing cash flow management.


3. Enhanced accuracy


Manual processes are prone to errors, such as incorrect data entry or lost receipts. Automation ensures greater accuracy by capturing transaction data directly from the source and matching it with corresponding receipts. This accuracy minimizes discrepancies, reduces the risk of fraud, and ensures that financial records are precise and reliable.


4. Streamlined auditing


Automated systems maintain comprehensive digital records of all transactions, making the auditing process more straightforward and efficient.


Auditors can easily access and review expense data, reducing the time and effort required for compliance checks. This streamlined auditing process ensures that companies meet regulatory requirements and maintain financial integrity.


5. Improved vendor relationships


Automation facilitates timely payments to vendors by ensuring that all expenses are processed and reconciled promptly. This reliability strengthens vendor relationships, as vendors appreciate timely and accurate payments. Improved vendor relationships can lead to better terms, discounts, and overall cooperation.


6. Enhanced employee experience


Automating corporate card management simplifies the expense reporting process for employees. They no longer need to manually compile reports or worry about misplaced receipts.


This ease of use enhances the employee experience, leading to higher satisfaction and morale. Employees can focus more on their core responsibilities rather than administrative tasks.


7. Data analytics and insights


Automated systems generate valuable data analytics and insights. Businesses can analyze spending patterns, identify cost-saving opportunities, and make informed financial decisions.Detailed reports and dashboards provide visibility into expenses, helping companies optimize their spending and budgeting strategies.


8. Policy enforcement


Automation ensures consistent enforcement of company expense policies. Predefined rules and limits can be embedded into the system, automatically flagging non-compliant transactions for review. This enforcement reduces the risk of policy violations and ensures that all spending aligns with company guidelines.


9. Security and privacy


Automated corporate card management systems offer enhanced security and privacy features. Sensitive financial data is protected through encryption and access controls, reducing the risk of data breaches. Automated systems also provide audit trails, ensuring that all transactions are traceable and secure.

Best practices to manage corporate credit cards for your business


1. Establish clear policies and procedures


Develop comprehensive policies and procedures outlining the appropriate use of corporate credit cards. These should include guidelines on allowable expenses, spending limits, and the consequences of misuse.


Clear policies ensure that employees understand their responsibilities and help prevent unauthorized spending, especially when implementing a corporate credit card program for small businesses.


2. Expense management software


Utilize expense management software to streamline the process of tracking and reporting expenses. This software can automate many aspects of expense management, from capturing transaction data to generating reports. It ensures accuracy, reduces manual effort, and provides real-time visibility into spending.


3. Card customization


Customize corporate credit cards based on the specific needs of different employees or departments. Setting different spending limits and restrictions ensures that cards are tailored to the user’s role and responsibility. This customization helps control spending and reduces the risk of misuse.


4. Employee confidence


Instill confidence in employees by providing them with the tools and knowledge they need to use corporate credit cards responsibly. A well-implemented corporate credit card program can empower employees to manage their expenses efficiently, boosting their confidence and job satisfaction.


5. Provide employee training and support


Regularly train employees on the proper use of corporate credit cards and the company’s expense policies. Offer ongoing support to address any questions or issues that arise. Well-informed employees are less likely to make errors or misuse their cards.


6. Authorize employees


Issue corporate credit cards only to authorized employees who need them for business purposes. Limiting the number of cardholders reduces the risk of misuse and ensures better control over expenses. Conduct thorough background checks before issuing cards to ensure trustworthiness.


7. Mandate proper documentation


Require employees to provide proper documentation, such as receipts and expense reports, for all transactions made with corporate credit cards. Proper documentation ensures transparency and accountability, making it easier to verify expenses and identify discrepancies.


8. Multi-level approval process


Implement a multi-level approval process for expense reports and transactions. Requiring approvals from multiple levels of management ensures that all expenditures are reviewed and validated. This process adds an extra layer of oversight, reducing the risk of unauthorized spending.


9. Regularly review and update policies


Regularly review and update your corporate credit card policies to ensure they remain relevant and effective. As your business evolves, so do its needs and risks. Keeping policies up-to-date ensures they address current challenges and support best practices.


10. Conduct regular audits


Conduct regular audits of corporate credit card transactions to identify any irregularities or areas of concern. Audits help ensure compliance with policies, detect fraud, and highlight opportunities for process improvements. Regular audits demonstrate a commitment to financial integrity.


11. Quickly address discrepancies


Address any discrepancies or suspicious transactions promptly. Investigate the issue, take corrective action, and update policies if necessary to prevent future occurrences. Swift resolution of discrepancies maintains trust and ensures financial accuracy.


12. Data security


Prioritize data security to protect sensitive financial information. Implement robust security measures, such as encryption, secure access controls, and regular monitoring, to safeguard against data breaches and fraud. Ensuring data security is essential for maintaining the integrity and confidentiality of your financial information.


To effectively implement these best practices, it’s important to recognize that corporate credit cards offer enhanced security features and spending controls that may not be present in business credit cards. Understanding this distinction ensures that your organization maximizes the benefits of using corporate cards.


For more insights on this topic, check out our page on difference between business and corporate credit cards.

Transform your expense reporting with Volopay's corporate cards

Streamline corporate card management with Volopay's all-in-one solution


Volopay offers an all-in-one solution to streamline corporate card management, simplifying expense tracking and control for businesses of all sizes.

1. Corporate cards for expense management


Volopay provides corporate cards that make expense management straightforward and efficient. These cards allow employees to make business-related purchases while providing the company with real-time visibility and control over spending.


2. Get physical cards for your team


Equip your team with physical corporate cards tailored to their specific needs. These cards come with customizable spending limits and restrictions, ensuring that expenses stay within budget and align with company policies.


3. Manage subscriptions with virtual cards


Volopay’s virtual cards are perfect for managing recurring payments and subscriptions. Each virtual card can be dedicated to a specific service, making it easy to track and control subscription costs while enhancing security.


4. Seamless bill payments


With Volopay, bill payments are seamless and hassle-free. The platform integrates with your financial systems, allowing you to automate payments, reduce manual processing, and ensure timely settlements.

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FAQs

How can corporate credit card data aid strategic decision-making?

Corporate credit card management data provides insights into spending patterns, cost centers, and budget utilization. This data can be analyzed to identify cost-saving opportunities, optimize budget allocations, and make informed strategic decisions that align with business goals and financial health.

What are the benefits of centralized corporate cards for multi-location businesses?

Centralized corporate credit card management allows multi-location businesses to maintain consistent expense policies, streamline expense reporting, and consolidate financial data. It ensures uniform control over spending, enhances visibility into company-wide expenses, and simplifies auditing and compliance across all locations.

How do corporate credit card programs differ from personal credit cards?

Corporate credit card programs are designed for business use, offering features like expense tracking, reporting, and integration with accounting systems. Unlike personal credit cards, corporate cards often include spending controls, policy enforcement, and the ability to issue multiple cards to employees, with the company being responsible for payment.

What security and fraud prevention features do corporate card programs offer?

Corporate credit card programs offer security and fraud prevention features such as transaction monitoring, spend alerts, fraud detection algorithms, and secure access controls. These features help detect and prevent unauthorized transactions, ensuring the security of company funds and financial data.

What are the benefits of providing corporate credit cards to employees?

Offering corporate credit cards to employees streamlines expense management, reduces the need for cash advances, and improves tracking and control of business expenses. It enhances employee convenience, ensures timely payments, and provides valuable data for financial analysis and decision-making.

What are the benefits of using Volopay corporate cards for employees?

Volopay corporate cards offer real-time expense tracking, customizable spending limits, and integration with expense management software. Employees benefit from the convenience of physical and virtual cards, simplified expense reporting, and seamless bill payments, enhancing overall financial efficiency and control.

How can Volopay help companies establish effective spending controls for corporate cards?

Volopay helps companies establish effective spending controls by allowing customizable spending limits, implementing approval workflows, and providing real-time transaction monitoring. These features ensure that all expenses are within budget and compliant with company policies, reducing the risk of overspending and misuse.

Looking for the best corporate cards for your business? Get Volopay now!