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Imposing Policies for Corporate Credit Card Usage


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It is not clear whether when the use of credit cards started; however, today, the usage of corporate credit cards is rapidly increasing. Many businesses and companies are now applying to have their own corporate credit card accounts. More and more companies are applying for a corporate credit card due to the fact that it can be very helpful because it allows the company to make debts.

A business that plans to apply for a corporate credit card may also provide individual cards to their employees. Most employees think that their credit cards are just like money, they tend to buy stuffs and pay off their personal debts.

But, this mentality may bring great danger to the company. Continuous usage of corporate credit cards for personal reasons may tend to let the company end up paying many debts. Plus, if great debts will be deducted to the employees’ salary, what will they receive during payday? Over use of corporate credit cards by the employees can also pose great danger to the employee's salary.

For this reason, employers must put rules, protocols or policies regarding the employees’ usage of their corporate credit cards. A corporate credit card should be used to buy stuffs that the company or the employee needs, which should be related to their work. If not, then an employee must not use it otherwise. This is the main purpose of getting a corporate credit card.

Nevertheless, it is hard for your employees not to use their corporate credit cards, which is why it is imperative to make a policy regarding its usage and impose this policy.

Imposing a policy and making sure that those who violate it will suffer (suspension, warning/memo, salary deductions and etc. ) may prevent them from ever using their individual cards for their own purpose. This may seem a bit harsh, but if you really want to prevent them from ever using this for personal interests, you need to impose it.

In addition, the employer should do this because primarily, most credit card issuers hold the employer as the one who's liable for all charges on the corporate credit card account. In spite of the any verbal or written agreement between the employer and the employee, the issuers still consider the employer as responsible for any charges on the said account, since he is the primary cardholder.

Putting up a policy on credit card usage may establish the procedure for the use of corporate cards, even the protocol. This will also help the employees in better understanding the liabilities and accountabilities regarding their use of the cards. The employer must see to it that the employees have read the policies before handing them out. However, these policies must be unbiased between the company and the employees.

If the employer wants to be fair, he or she can put a limit as to how much personal charge an employee can put on the card. Or, the employer may also provide a policy which is beneficial for both parties. This may be hard; however, doing so will make the company fairer and more unbiased in the eyes of the employees.

Thus, the employees will happily oblige themselves into following the company's corporate credit card policies. This may also with an opportunity to improve the relationship between the employer and his or her employees.

Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information on a credit card or to apply for a credit card checkout his recommended websites.


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