At A Glance
Get control of your company's credit card usage:
- Investigate setting up a centralized card if you don't have one already.
- Choose a card with expense control features built-in
- Hold travelers responsible for unapproved purchases.
- Ensure your card has liability coverage for terminated employees.
For more tips on controlling credit card usage, contact your account manager today.
Credit Cards - A Little Too Convenient?
Everyone knows credit cards are convenient. The problem is sometimes they're too convenient.
Occasionally personal purchases make their way onto company cards and expense reports, and that's where the trouble begins. You or someone else in the company must reconcile the paperwork and check the purchases.
Fortunately there are some easy steps you can take to seize control of your company's credit card usage:
- Consider setting up a centralized card. This is not for everyone. Depending on your company's specific needs, setting up a central card can have its advantages. One of the best benefits is that all purchases come back on a single bill. Additional benefits of a central card program include easier management with only one statement to reconcile. There's one bill to pay instead of several individual expense reimbursements and better company management with timely payments and elimination of late fees. When travelers don't have to reconcile charges, the time is better spent on company business.
- Use a card with expense control features. The Egencia credit card is a great example, but there are many others. When choosing a company credit card, look for one that has features that will help your company control its travel spending. For example, a card might only allow purchases of particular items, such as air, car and hotel, or it might set spending limits to prevent runaway spending. Additionally, cards can be limited to specific vendors so, for example, an employee can't use their card to purchase groceries.
- Hold your travelers responsible for unapproved purchases. A traveler will be more responsible for credit card charges if they know unpaid balances will affect their credit score - not the company's. Setting up individual liability on a card is usually done at the time an employee is given a card, although it can often be added later. Just contact your credit card company to see if they offer such a program.
- Keep track of traveler purchases. An important part of managing travel spend is being aware of what purchases are being made. Fortunately Egencia makes it easier with some helpful tools. For example, TripController™ lets you manage travel spend in real time by limiting certain purchases before they're made. Or you can simply notify designated users by e-mail when purchases are made.
- Use a card with liability coverage for terminated employees. If you don't currently have this coverage, you should. You never know when an employee is going to be terminated, leaving your company with an invoice of unapproved purchases to cover.
There are many more ways to take control of credit card spending. Contact your company's account manager today to discuss strategies for maximizing the effectiveness of your credit card program.
Companies can also consider weighing corporate liability against individual liability, which can further reduce administrative expenses.
Not sure if a centralized card is the right move for your company? Contact your account manager for personalized advice geared toward your company's needs.