A quick guide to corporate credit cards
Quick insights
- Corporate credit cards can help companies streamline expense management, centralize billing, earn rewards and more.
- Corporate card features are often customizable based on the business’s size, industry and operational needs.
- The rewards earning potential may be lower with corporate credit cards compared to business credit cards.
Corporate credit cards—sometimes called commercial credit cards—allow employees to charge business expenses to a company account. This tool enables them to cover costs like hotels, flights for business trips and client dinners without using their personal credit cards or cash.
Employees may appreciate not having to wait or submit paperwork for manual reimbursement, while business owners may find that these cards help simplify expense management and control spending.
However, not all businesses qualify for corporate credit cards, and some business owners may prefer business credit cards, which differ in several ways. Here’s a guide to corporate credit cards, including some qualification criteria, benefits and features of these cards.
What is a corporate credit card?
A corporate credit card is a financial tool designed for larger, established businesses—typically S-corps, C-corps and certain LLCs—to allow their employees to make work-related purchases. To qualify for a corporate credit card, businesses typically need to meet specific annual revenue and spending requirements.
With corporate credit cards, the business assumes liability for any debts, not the business owner or employee cardmembers, as opposed to business credit cards that usually require a personal guarantee. However, there may be corporate cards with other liability options.
These cards are not generally suited for small or medium-sized businesses. Companies of this size may find business credit cards more closely align with their operational needs.
Note that Chase doesn’t offer corporate credit cards.
Benefits of corporate credit cards
Some potential benefits of these cards include:
- Streamlined expense management
- Fewer manual reimbursements
- Centralized billing that consolidates charges for all employees
- Potential to earn rewards
- Coverage to reimburse eligible items if things go wrong during business trips
- Tools to help protect against unauthorized purchases
3 Corporate credit cards features to look for
Corporate credit card features can vary widely. Due to the complex financial needs and high spending volumes of many corporations, credit card issuers tend to offer more customizable features to meet the unique needs of these larger businesses compared to business credit cards. Features may be designed for specific industries or based on the size of the business.
While the specific features often depend on a corporation’s needs, here are some features that may be helpful regardless of business type.
1. Expense management tools
Some corporate credit cards offer in-depth reporting capabilities, potentially allowing financial controllers to track spending by department, project or individual. Expense management tools may allow for real-time tracking to monitor spending. These tools may help identify areas of concern or opportunities to save money, helping to reinforce expense management best practices.
These reporting capabilities typically integrate with a business’s existing financial management software, supporting a clearer view of spending and supporting informed financial decision-making. Additionally, there may be tools to streamline the reimbursement process, which could be helpful for companies with employees who travel frequently or entertain clients.
2. Employee spending controls
Corporate credit cards often allow businesses to set individual spending limits for each cardmember. There may be other capabilities to control employee spending, including restrictions on spending in certain categories.
These tools may help with budgetary constraints as you adjust spending limits in real time based on business needs.
It’s generally recommended to establish a corporate cardmember policy for employees—and if travel is part of the business, a corporate travel program—which can emphasize the importance of using the card wisely.
3. Rewards program
While rewards are generally less common with corporate credit cards, you may find that some cards offer them. In some cases, the card issuer may offer rewards customized to the spending and travel patterns of the corporation.
There may be volume discounts (negotiated based on the company’s spending level) and rebates when the corporation uses the card issuer’s preferred vendors and service providers. For instance, you might get access to competitive rates with certain airlines, hotels and car rental companies.
Keep in mind that corporate credit cards may have lower rewards earning potential compared to business credit card rewards.
In summary
Corporate credit cards could be a suitable choice for large, established businesses that meet specific annual revenue and spending requirements, while business credit cards may be appropriate for businesses of any size, including small businesses, startups and solo entrepreneurs.
Some potential benefits of corporate cards include efficient expense management, centralized billing and discounts with preferred vendors and service providers. These cards may be customized to meet a company’s needs, though their rewards earning potential may be lower compared to business credit cards.
