How to pick best corporate credit card program for your business?
The benefits offered by corporate virtual cards have made it a no-brainer for organizations to select a corporate credit card program. For your employees, these corporate cards enable easy access to budgets for business travel, marketing-related expenditure, and other miscellaneous expenses without having to worry about lengthy reimbursement periods. On the business front, you and your finance team get to easily track, monitor, and control your budget on a granular level.
What are small business credit cards?
A small business credit card, as the name suggests is a credit card that is issued to small businesses by a bank. Of course, there are certain criteria that you must fulfill to get access to it.
While there is no universal metric to define a ‘small’ business, most organizations that are privately owned partnerships or run by sole proprietors with few employees and a low annual revenue as compared to corporates fall under the umbrella of ‘small business.’
This was the go-to option for business owners back in the day. But now, the trend is shifting in favor of corporate credit card programs as people are starting to learn more about it and what makes them a better option.
How do corporate credit cards differ from small business credit cards?
They differ based on who is eligible to receive and use them, who is liable to pay the credit, and other requirements that you must fulfill.
When it comes to small business credit cards, the owner of the business is liable to pay for the credit received even if the business is under another entity’s name.
With a corporate account, the liability can be divided between relevant stakeholders based on the corporate credit card provider you choose:
- When an employee pays for the expenses and is later reimbursed, it falls under individual liability.
- When the business pays off the bills, it is known as corporate liability.
- And another option is a joint liability, where both the company and the employee are liable to pay the debt.
Within Volopay, since we provide corporate credit cards that draw funds from the credit provided on the platform, it is only the business that is liable to pay for the amount utilized.
For any sort of credit or lending activity, there will be eligibility criteria to make sure that your business is financially sound.
To be eligible for small business credit cards:
- You must have business credit reports.
- Depending on the bank, the age of your business will be taken into consideration.
- And your annual revenue reports will be checked for financial stability and growth patterns.
To be eligible for a corporate credit card program:
- Depending on the provider, there might be a minimum number of users you must have to use their platform and be part of the corporate program.
- You must also be able to show a certain amount of forecasted credit charge based on past data. The amount again depends on the provider.
Some other common requirements for both these types of credit cards include:
- Financial statements of the organization
- Tax information
- Company structure
- Contact information of the representee.
Looking for the best corporate credit card program for your business?
Why do your employees need corporate credit card program?
A corporate credit card program eliminates the need for reimbursements by allowing your employees to spend from the company budget instead of spending their own money and filling for reimbursements later.
But just in case you do still need the reimbursement feature, it is available through the provider platforms where your employees simply have to upload a picture of the receipt through the mobile and add the necessary details to get their money back.
No more do your employees need to worry about paying from their pocket when traveling for business, or making subscription payments and getting overcharged.
They will spend less time worrying about when they’ll get their reimbursements and spend more time getting work done. All due to fast payment approvals and direct spending from the company budget instead of their own pockets.
Be it physical corporate credit cards or instant virtual cards; your employees and finance team will experience complete transparency as each transaction will be recorded on the credit platform being used.
All of this ultimately saves a lot of time for everyone, leaving more opportunities to engage in work.
Factors to consider while choosing corporate credit cards
There are different liability options when you opt for a corporate card program. Make sure that the provider you choose offers a type of liability option that you are comfortable with.
The whole point of opting for a new credit service like a corporate card program is to save time, save money, or do both. If the platform you choose does not allow you to process your payments faster than traditional options, what’s the point?
A good corporate card program comes with a good reward program. Since virtual corporate cards have pretty much no cost of being issued, they are built with a good reward system that offers cashback on various types of transactions. You can then use the cash back you receive as part of your credit budget for future expenses.
When choosing a provider, probably one of the most important factors to consider is whether you can integrate your accounting software with the platform so that all your expenses get synced in your ledger accounts.
If the provider does not mention the accounting software you use on their website as part of available integrations, you can always reach out to them and ask whether it is possible to execute a custom integration.
An expense policy allows organizations to set approval workflows, allot budgets to corporate credit cards, and enforce spending limits on each cards. Having the ability to create and implement an expense policy for your corporate card program is very essential.
Setting rules and guidelines through the provider platform for all the physical and virtual cards for businesses that you issue is crucial to tracking, monitoring, and controlling how budgets are spent by your teams and employees.
Each corporate credit card program provider will have different and many of the same offerings. Make sure to choose depending on your requirements. Most of them usually have the option for both physical as well as virtual credit cards.
You should ensure that they support the currency you transact daily and what their FX charges are for cross-border payments.
Get your corporate credit card program from Volopay
Volopay offers businesses a corporate credit card program that gives you access to physical cards, instant virtual cards, and many other product features. We give corporate credit cards for small businesses wherein you get 1 physical card per user and the ability to create unlimited virtual corporate cards.
Integrate with accounting software
Volopay offers integrations with major accounting software products like Xero, Netsuite, Deskera, QuickBooks, and more. Custom integrations are also taken into consideration as per the client's request.
Multi-level approvals
You can set multiple levels of approvers for transactions above a certain amount. For example, if an employee wants to conduct an expense that is above $100, then rules can be set wherein the payment first goes to the respective team member’s manager for approval before being able to conduct that expense.
Virtual cards for every employee
Under any of our plans, you can issue an unlimited number of virtual corporate cards for your employees.
Earn cashback and rewards
Depending on the type of transactions you incur, Volopay offers up to 5% cashback as part of our rewards which you can redeem and utilize at any point as part of your budget.
International transactions
If you’re tired of high cross-border transaction fees, then Volopay is definitely for you. Our cross-border transaction fees are very low as compared to traditional cross-border payments.
Real time reporting
Every transaction done through our corporate credit cards is instantly collated in a ledger tab specifically for card expenses. This allows you to see all expenses made by employees in one place.
Say goodbye to reimbursement culture
Implementing corporate credit cards eliminates the need for reimbursements. Through the Volopay dashboard, you can automatically enforce the expense policy without the accounts team having to continuously check for compliance.
FAQs
Any business is eligible for our corporate credit card program as long as they meet all the requirements:
- Should be a business registered in a market we currently serve.
- Some documents, such as the latest business profile of your company and due diligence (KYB) forms, may be requested during the process of opening your new account.
Post the verification from our end, we will send you an invite link to onboard the first member as the admin of your company.
Yes, corporate credit cards are safe to use for international transactions. While these cards are at risk of fraud just like any other credit card or debit card, certain features reduce the possibility of theft to almost zero.
Both physical and virtual cards have the option to be frozen or disabled immediately from the Volopay dashboard. Virtual cards have an added security benefit since you can create a card every time you need to make a transaction and disable it immediately after it is completed. This way, there is no chance of the card details being transferred and misused by someone.
Each business sets its policy within the Volopay platform for its employees. Hence it is completely in the hands of the business owner and the responsible authorities to deal with employees who misuse the platform or corporate cards acquired.
In reality, while using Volopay there is no chance of violating the policies as the corporate cards auto-enforce company policies. All the approval workflows that you create and implement ensure that employees can't add money or spend without the admin/manager's approval. Since you also get the option to add multiple approvers, there is complete compliance.
You earn up to 5% cashback rewards on all the FX transactions you conduct using the Volopay corporate cards.
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