Travel costs for transportation and accommodation expenses during business trips account for a considerable chunk of an organization’s expenditure. Companies adopt several measures to control travel expenses. Controlling and tracking travel expenses is a vital aim of the company’s travel policy. Business credit cards ensure a convenient and practical way to regulate and track travel costs. Companies issue business credit cards to employees who need not pay out of their pockets during business trips.
Organizations have seamless control over the business card utilization by employees. A corporate credit card is a key to cost control and revenue growth. Advanced travel management platforms present extensive visibility of credit card use with access to real-time analytics to monitor usage.
Types of business credit cards for travel
The best business credit cards guarantee several benefits, including lounge access to improve the travel experience of your employees. The perks may help you earn reward points on transportation and hotel accommodation. There may be some conditions or limitations depending on the type of business card.
1. Generic credit cards
Generic credit cards do not tie you to a specific airline or chain of hotels. The card has the name of the issuing financial institution, like a bank. You can apply for a business credit card from banks or other financial institutions. Your employees are free to use the card depending on the network of the issuing bank. Generic credit cards are helpful for budget travelers as they get the freedom to choose the most economical travel option.
2. Co-branded credit cards
Co-branded cards enable you to use the card at specific establishments of the retail brand. These cards have the backing of a reliable credit card network like a MasterCard or Visa. There are many perks to using co-branded credit cards, like travel insurance covering delays, loss of luggage, and accidents.
Corporate cards benefits credit cards for employees
There are several corporate travel card benefits for employees who need not spend money on the company’s behalf and wait for reimbursement. These are a few benefits of business credit cards for employees.
1. Simplifies expense report processing
There is faster processing of expense reports as a corporate credit card takes care of travel and accommodation expenses.
2. Facilitate smooth travel
A business travel credit card enhances the travel experience with access to travel assistance, lounges at domestic and international airports, and stress-free travel with no burden of carrying fiat currency. Employees can easily face unforeseen circumstances, like an extension of the business trip that requires access to extra funds. It is where credit card will act as a boon.
3. Other corporate credit card benefits
Employees using business credit cards are eligible for assistance for loss of luggage, lost-card replacement, and emergency advances.
Corporate cards benefits for businesses
Corporate organizations can exercise sound control over spending patterns to achieve better cost control. The following benefits of business credit cards for corporate are noteworthy.
1. Define limits
Limiting employee travel expenses and overall expenditure is possible. Companies can also extend restrictions to merchant establishments, regions, or countries.
2. Remarkable visibility into spending
Corporate travel managers gain exceptional visibility into how employees spend during business trips. The finance team has easy access to details of each transaction.
3. Smooth expense management
Integrating business credit cards into a SaaS-based travel management system like Paxes enhances access to all transactions and analytics for various employees and expense categories.
4. High-end security features
Choosing the best business credit cards enables the organization to enjoy advanced security protection against multiple risks, like loss, theft, or card misuse.
How to apply for corporate credit card
Companies must follow these simple steps to apply for a business credit card
- Research to discover the best business credit cards that integrate with your travel and expense platform like Paxes
- Check the organization’s repayment record and credit score are satisfactory for ease and prompt approvals
- Visit the card issuer’s portal or a local office
- Find out the most appropriate credit card option that matches your travel requirements
- The company must qualify for the credit card by meeting specific eligibility requirements
- Applying by completing the formalities
Suggested Read: Why Should Organizations Opt For Corporate Tour Packages
Conclusion
Business credit cards help small businesses and large organizations track and control travel spend. A SaaS-based travel management solution like Paxes helps integrate business credit cards with the expense management program for greater compliance with travel policy guidelines.
