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Policy for a Business Credit Card

by K.A. Francis

A credit card usage policy spells out how the card can and cannot be used, and by whom. The policy is a form of internal control for the business so card usage can be more easily tracked. Some companies restrict the card usage to certain employees, such as management or employees who travel for business on a frequent basis, or it can be used by any employee with a legitimate business expense. How the card is used is determined by the company's senior management.

The company credit card can be used for business purchases, such as office supplies, travel expenses and company dinners. In some cases, clothing for specific business functions can be placed on the card. Repairs and maintenance for company vehicles driven by employees can be charged to the card as well. Any expense that is directly related to doing business can be placed on the card.

The card should not be used for personal purchases, such as home utility bills, employee car payments or vacations. Any purchase that

is not directly related to business use should be prohibited, unless express permission from a member of senior management is given.

The use of the credit card should be monitored on a regular basis. The card usage should be reconciled with its monthly statement, and any discrepancies should be investigated immediately. Employees should be required to submit receipts for the usage of the card and the card should be kept by one person in senior management to lessen the chances of the card being lost or stolen.

It is important for a company to have its credit card usage policy in writing and that all employees are given a copy of the policy. With a written policy, there is no question as to what is acceptable use and what is not. Anyone who violates the use of the card will not be able to claim they did not know it was in violation of the policy. It is also important that not only the policy but also the consequences for misuse are outlined in the policy as well.


Category: Business card

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