Corporate companies can select an appropriate method to settle travel expenses, thanks to the broad spectrum of travel payment options. However, the availability of many payment methods makes it difficult to select the business travel payment solution to suit a particular organization’s business travel program. The choice of a business travel payment solution is crucial as business travel expenditure is the second-highest cost component for the organization. Here are a few state-of-the-art corporate travel payment solutions to help you select the suitable option.

Different business travel payment methods

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Technological innovations in contactless payment methods are driving future payment trends. The innovative business travel payment solutions enable several value-add features besides ensuring end-to-end security. Smart and digital business travel payment solutions have the potential to fulfill every business traveler’s needs.

1. Personal cards to minimize upfront travel costs

Companies can mitigate upfront travel costs by allowing employees to use personal cards. These cards reduce the cash-flow burden as employees bear the initial cost of airfare through their accounts. Personal cards reduce employee satisfaction, as they must claim their travel expenditure in expense reports and wait for approvals and reimbursements.

Returning refunds to the card can lead to problems if the employee cancels the booking after receiving expense reimbursement. Travel policy compliance may be an issue unless the company sets proper policy measures by adopting an online travel management platform.

2. Central corporate card for controlling travel costs

The central corporate card enables companies to manage travel expenses centrally. Businesses can avoid using multiple cards and ensure strict travel policy compliance by withholding payment information. The card service provider may support simplified reconciliation of travel expenses. Business travelers can readily adopt a central corporate card, improving the traveling experience. Most hotels and other travel suppliers welcome central corporate cards for online payments.

Suggested Read: What Is The Travel Expense Approval System

3. Virtual payment cards for centralized billing

As the name suggests, virtual payment cards exist in the digital form, allowing use for a particular time, amount, and travel supplier. Virtual payment card enables organizations to enhance the travel experience as employees need not pay from their own pockets and wait for reimbursements. The virtual business travel payment eliminates the need for a complex expense reporting process.

The cards have better acceptance across many travel suppliers. Business travelers can opt for central payment by retaining the non-refundable credits in their name. Virtual payment cards facilitate negotiated hotel amenities and rates of travel booking.

Virtual payment cards ensure greater compliance with the travel policy and minimize the possibility of expense fraud. These cards facilitate the central billing option by providing security with a single card number for one-time use. The corporate travel payment option of the virtual card does not allow its usage outside the pre-defined parameters. It helps real-time travel expense tracking with automatic reconciliation.

4. Individual corporate cards for greater flexibility

The individual corporate card is the most flexible business travel payment solution. It streamlines business travel, as employees can book business travel to suit their convenience and choice. The individual corporate card supports only legitimate travel expenses.

Companies can adopt expense management tools to improve travel policy compliance while using individual corporate cards. These cards boost travel program adoption by streamlining data consolidation by separating personal and business travel expenditures. Companies may experience difficulties controlling travel costs unless they adopt an efficient travel management platform. These SaaS-based programs enable corporate travel managers to incorporate cost-control measures.

Benefits of using a corporate credit card for business travel

  • Easy to use
  • Helps in recording the transactions
  • Higher credit limits
  • Loyalty rewards

5. Prepaid top-up cards

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The corporate travel payment option of topping up the prepaid card in real time is a universal practice in several organizations. Crediting the top-up card after each travel expense streamlines expense management. Prepaid cards facilitate expense management, as the company can preload an entire amount to cover the business trip’s expenditure.

There is an extensive acceptance of prepaid credit cards because of excellent cost control and real-time visibility into travel expenses. Organizations can load an adequate amount to support business trip expenses. Organizations can lock or cancel the prepaid top-up card in case of any security issue, such as loss or theft.

How long does it take to get reimbursed for business travel expenses?

On average business takes about 2 weeks to reimburse the travel expenses of an employee. However, some companies can even take up to 1 month to repay the employee for the transactions he made on behalf of the company. This can really demotivate the employees for business travels.

Wrapping it up

Many business travel payment options exist to support travel and expense management by improving travel policy compliance. Credit card is the most popular payment method among several businesses. Knowing which corporate payment option suits your organization’s travel policy helps you choose the proper payment method. Companies are adopting contactless and centralized business travel payment solutions and use SaaS-based travel management programs for seamless travel policy implementation and control of business travel costs.

Paxes is an artificially advanced platform that provides efficient solution to every business requirements. Travel management companies and corporations can utilize Paxes for affordable corporate hotel and flight bookings with different payment methods.

Suggested Read: How To Get Best Corporate Hotel Rates For Greater Savings

Business Travel Payments FAQs

What are the advantages of using business credit cards?

Companies get a higher credit limit on business credit cards than personal credit cards. These cards facilitate setting up expenditure limits as per employee levels and benefit multiple users in the organization.

What is the SEPA payment facility?

SEPA is a short form for Single Euro Payments Area enabling payments across 36 countries. SEPA enables risk-free, secure, prompt, and cashless payment transfers with no hidden fees.

How does an ideal business travel payment method benefit an organization?

Besides enabling payments to travel suppliers, an ideal corporate travel payment method generates critical data for tracking and analyzing corporate travel costs. These payment solutions feed credit card data into expense systems. Companies can improve travel policy compliance across employee levels by integrating business travel payment solutions into SaaS-based travel management platforms.

What factors drive the adoption of secure business travel payment methods?

Companies want to minimize the potential for expense fraud by adopting secure payment methods besides incorporating payment security.

What is the emerging trend in the domain of business travel payment?

Virtual business travel payment solutions like the virtual card are the new trends gaining widespread popularity. It ensures payment security and ease of reconciliation, and improves travel policy compliance.

How much should my company pay for mileage?

As of July 2022, the IRS has decided the standard mileage rate to be $0.625 per mile.

Should I use a corporate credit card or a personal credit card for business travel?

Using a corporate card for business travel is much more convenient than a personal card as it saves the hassle of reimbursement and makes the recording and tracking of expenses easier.


Pratyush

Pratyush is a traveling enthusiast who always looks for innovations in business travel management. He has 5 years of experience writing content on corporate travel management and working closely with expert business travel facilitators.