Guide to corporate credit cards in India for 2023
Corporate credit cards in India came into existence to help businesses sort out business-related expenses of employees. Though reimbursements are more popular, it increases the workload of employees and accounting teams.
Many expenses go unreported or falsely reported leading to poor expense reporting. The payment mode that overcomes this and also makes the job easy for everyone is the corporate credit card in India.
By distributing the corporate credit card for employees, you empower them to cover their own business-related expenses with business funds.
How do corporate credit cards work?
Corporate credit cards look and work like any other cards. They come with the names of employees on top of them.
Specifically, corporate credit cards work differs from normal business credit cards in the following ways.
• Corporate credit cards come with the ability to be managed from a centralized dashboard.
• You can set budgets for each card controlling out-of-pocket expenses of employees. You can also set authorizations if more credits must be added.
• You can block or freeze the card anytime from the dashboard if the card should not be used further.
• The corporate credit card for employees gives you real-time visibility. You can keep an eye on where your card is used right from the dashboard.
• Corporate cards come in both physical and digital formats.
• You can link each card to a relevant department. So that makes it easy to see how much each department has spent.
Suggested read: Benefits of prepaid cards for businesses in India
What documents are required to apply for a corporate credit card in India?
Interested in assigning the corporate card for employees? The corporate credit card in India requires a business to submit the following documents.
The list of documents that you should gather is
Any government-issued ID card like Aadhar, pan card, voter ID, driving license, or passport works. This ID proof should have the full name and age of the applicant.
For address proof of the business, you can submit rental or lease agreements, utility bills, licenses or ownership documents, property tax, and rental receipts.
Every eligible and registered tax-paying business in India can obtain the GST certificate. You can download yours by logging into the government GST portal. GST number will be present in your login details of the GST platform.
CIN number means Corporate Identification Number or Company Identification Number. This is a unique identification number given to businesses.
You can find yours by running a search on MCA 21 portal. Search with your company name, ROC registration number, or old CIN. CIN number is a must to apply successfully for a corporate credit card in India.
Bank statements of a business are considered an important document proof to validate your eligibility to own a corporate card. They decide how much credit you are eligible for.
Fetch bank statements of your business checking account for the past 3 to 6 months.
To know more, read - How to get a corporate credit card in India?
Factors to consider when choosing a corporate credit card in India
There are countless options for Indian SMEs to provide corporate credit cards for employees. Before choosing an ideal product, you must be aware of certain factors related to the features of this product.
No two businesses spend alike. The spending habits vary based on the location, nature of the business, industry, and many more factors.
If you look at the types of corporate credit cards offered in India, there are travel cards, premium cards, platinum user cards, charge cards, cards with usage limits, etc.
Depending on your business requirements and employee travel needs, you can choose a card and plan that works well for you.
The reason that pushes businesses to go for corporate credit cards is its features. Some features that must be present ideally are
• Ability to set budgets for each card
• Monitor expenses of all cards in one place
• Should be able to set limits
• The number of cards generated shouldn’t be limited
• Should be able to delete or freeze the card if it’s not needed anymore
The bonus benefits of having a credit card are enjoying rewards and cash back. Corporate credit cards in India typically offer cash back. They might also offer cheap international transactions at a cut-down fx rate.
There are also cards that offer you discounts for specific spending, let’s say a hotel or air ticket booking through a particular app. By choosing such products, you can reap more of what you spend.
The corporate credit card in India is indeed an expensive product. But the price range differs from provider to provider. There might be annual costs or charges associated with each transaction.
Some providers emphasize hidden charges also. Compare the charges of different card providers and also analyze if their pricing is transparent.
You can predict how much you need to manage employee expense needs. Your credit lender must be able to provide that. Also, your current loan and other liabilities will be taken into consideration to determine your eligible credit.
Hence, you need to make sure that you will get the required amount of credit needed to load the corporate credit for employees.
Most providers of corporate credit card in India have a single-click application process. They require minimal information and documentation.
At maximum, it will take only a few minutes to fill out and submit an online application. They are also prompt in sharing the updates and sending the card.
Choosing such a provider will make the task easy for you. If you go for providers with lengthy forms and those who ask for old documents and statements, it will prolong the process.
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Corporate credit card options in India
With no joining fee or renewal annual fees, the SBI Platinum Corporate credit card might be one of the options for you.
Being a card on the Visa network, your SBI Platinum Corporate credit card will come with the Visa IntelliLink spend management tool, which enables you to set not only monthly limits but also daily and weekly ones for greater spend controls.
You can use your card in over 24 million outlets worldwide. If you lose or misplace your card, it can also be replaced within 72 hours from anywhere.
You’ll also gain access to complimentary travel insurance coverage with your SBI Platinum Corporate credit card.
There’s a 40.2% per annum APR for retail and cash transactions. However, you can get interest-free credit for retail spending for a period of 20-50 days, so long as your previous month’s outstanding credit card balance has been paid.
Not only can you get interest-free transactions for the first 50 days since your HDFC Business MoneyBank card creation date, but you’ll also be able to enjoy a number of rewards, exclusive deals, and cashback with this card. You can earn up to 3 times the reward points on purchases like airplane tickets and hotel bookings.
To create an HDFC Business MoneyBack credit card, you’ll be charged a joining fee of INR 500. Your annual fee for the second year onwards will also be the same. However, this fee can be waived if your annual spend is more than INR 50,000.
You’ll get perks like 5% cashback on business expenses such as T&E, electricity, and hotel books. The HDFC Business MoneyBack credit card also lets you gain 5x reward points on fuel and earn 2,500 reward points per anniversary year if you spend over INR 1,80,000.
Other perks include complimentary insurance and purchase protection covers that you’ll be eligible for after a minimum of making four INR 100 transactions on your card per month.
The Axis My Business credit card offers a number of rewards and benefits that will improve the way your business spends. It’s made to suit all your daily business needs.
With low interest rates and a custom Exclusive Business Savings Plan to suit your business operations, you can ensure that you spend efficiently. Axis My Business credit card offers various discounts and cashback on plane tickets and hotel bookings. Their eDGE Loyalty Rewards Program is how you earn points and redeem them for various rewards.
You can use your Axis My Business credit card to make cash withdrawals in over 1 million Visa ATMs worldwide. Up to 30% of your credit limit will be available as cash withdrawals.
There is a joining fee of INR 999 when you create an Axis My Business credit card. From the second year onwards, you’ll be charged an annual fee of INR 499. There are no additional joining fees for any add-on cards after your first card.
You’ll be able to enjoy benefits such as lounge access, fuel surcharge waivers, and even complimentary golf courses with the Yes Prosperity Business credit card.
You can get a Yes Prosperity Business credit card with a first-year fee of INR 399 plus taxes. This fee can be waived if you have made a total of INR 10,000 on retail spending within the first 30 days of setting up your card. Your annual fee for the second year onwards is also INR 399 plus taxes per year, which can be waived if you have a total of INR 1,00,000 on retail spending within 12 months prior to your renewal date.
If you spend over INR 6,00,000 within the year on your card, you’ll be awarded with 10,000 reward points. On top of that, you can get 2-4 reward points for every spend of INR 200. These points can be redeemed for various rewards, including air miles.
The Yes Prosperity Business credit card has a preferential foreign currency markup of only 2.50% and an interest rate of 42% annually for revolving credit, cash advances, and overdue amounts.
The Citibank Corporate credit card boasts automation tools to streamline your card expense reporting process and control your business spending better. With the Visa IntelliLink tool, you can access your card statements and have detailed summaries of your linked cards from anywhere.
When you create a Citibank Corporate credit card, you won’t be charged a joining or first-year fee. Your annual fee will be communicated to you during your first card creation.
You’ll have access to many Citibank features with your corporate credit card. SMS banking, mobile banking, over-the-counter assistance, and over 2 million ATMs worldwide will be available to you. Should you lose your card, you’ll also be able to get a replacement from anywhere in the world.
Get discounts of up to 55% when making business purchases like car rental, hotel books, and other T&E expenses. You can also enjoy discounts of up to 20% in numerous restaurants in India with your Citibank Corporate credit card.
For every INR 125 that you spend on your card, you’ll get 2 reward points that will not expire.
Volopay corporate cards for your business in India
Looking for a powerful card that comes with all the above features? Volopay is right here for you. Volopay corporate cards are the best for making online payments and out-of-pocket expenses for employees.
Here is why you must consider Volopay for providing corporate cards with credit.
• Volopay has both physical and virtual cards. Physical cards are premium, sleek-model, plastic cards with your employee names on top.
• Virtual cards can be created within the Volopay dashboard and used anywhere. Each card comes with unique card details. And you can create as many as you need.
• Along with assigning the cards for employees, they also work best to schedule monthly subscription bills in auto-pay mode.
• Be able to set budgets for each card and control how much employees spend. If they need more, they must get approval.
• No longer need a card? Simply freeze or block the card.
• Monitor from the main dashboard the transactions processed through each card.
• If you are eligible to borrow credits, apply within 3 minutes, get your profile validated in a few days and receive credit right into your Volopay wallet. All within the app.
Compared to other corporate card providers in India, Volopay cards are cheaper, reliable, and best for both local and international payments.
Suggested read: A guide on how credit card processing works in India
FAQs
No. Corporate credit cards only check the financial status of your business and verify your previous months’ bank statements and profit and loss statements.
It typically takes 3 to 5 business days to apply, verify your profile, and be issued a corporate credit card in India.
The credit score of your business is required to determine your creditworthiness and eligibility to own a corporate credit card in India.
With many fintech players and prominent banks in the game, it’s very easy for any growing business to apply for a corporate credit card for employees. But it also depends on the financial condition and other liabilities of the business.
No. On the contrary, it helps in boosting the credit score, given you repay the borrowed credit on time.