Keep costs down and prevent both misunderstandings and fraud by having a simple card policy. “Make it short and specific so that everyone can follow it,” says Beate Svendsen, Key Account Manager at Eurocard.
All workplaces where corporate cards are used should have a card policy, Beate Svendsen believes.
“A clear document describing the rules for using corporate cards and for business expenses saves time and minimises the risk of misunderstandings and the misuse of cards. But make it short and specific so that everyone can follow it,” she says.
A successful card policy depends on the company using corporate cards for which the company assumes the credit risk; in other words, it is ultimately liable for payment.
“Then the cards work seamlessly with business solutions that allow you to see purchases in real time, set purchasing limits and cancel cards”. The cards can also be integrated with expense and travel management systems, to make paper receipts digital and automate expense management.
Then it’s just a matter of getting started with the card policy. To help you, here are four questions that should be answered in the document:
What type of corporate card will your company use?
State the card that will be used, the application criteria and describe how to apply for the card. Also tell employees which app should be used with the card.
How should the corporate card generally be used?
Explain the types of purchases/expenses that are authorised and give examples. Tell employees about the rules for entertainment expenses and what the cardholder needs to do if they accidentally use the card for personal expenditure. Inform them of the cardholder’s responsibility for their card and for complying with the card issuer’s terms and conditions.
If the card is lost or stolen, there should be a card cancellation procedure that the cardholder can easily follow. The policy should also be clear about the consequences if employees do not follow the guidelines for card use.
How should the corporate card be used on business trips?
Explain which portals and apps the card should be used in as a means of payment, e.g. travel agencies, car hire companies, etc. The policy should also set out the rules that apply to gratuities and cash payments, or if a receipt cannot be given after an authorised expenditure.
How will invoicing and expense reporting be organised?
Will invoices be sent directly to employees or to the company? Clear information should be given about who is responsible for ensuring that invoices are paid on time. It is also important to explain which systems/tools should be used to report expenses. Describe, step by step, how expenses should be reported, and what kind of receipts and invoices are required.