Corporate Credit Card Policy

The key rule in corporate credit card is that the primary cardholder is fully responsible for the account charges, despite of any contract between him and the employee. On the other hand, if the terms of the corporate credit card will render an equal responsibility to both parties, the employer shall inform the employees of his duty to this matter. The policy will state an agreement regarding the liabilities of the primary cardholder, who is the employer, and the authorized cardholders or the employees.

Corporate credit card policy:

1) To explain how the system of the corporate credit card will work. This includes the benefits, conditions, the eligible to posses the card and the documents required in order to charge the expenses to the corporate credit card.

2) To explain to the eligible employee his responsibilities regarding the use of the card which he had to sign such as providing an accurate record of transactions that will stand as evidences.

3) To indicate the maximum credit depending upon the employee's designation in the company.

4) To monitor the procedure of auditing the purchases monthly.

5) To set up a policy on lost or misuse of the corporate credit card.

The policy on corporate credit card must be developed and communicated to the corporate cardholders for strict adherence and thereto avoid any misapprehension to occur. More importantly, the policies must be fair and reasonable for both parties.