Corporate expense cards for travel ensure easy payment and streamlined management of expenses. These cards can be of any type such as corporate credit cards, prepaid corporate cards, VCC, Airline specific cards, and many more. The cards come with numerous benefits such as expense tracking, spend control, integration with EMS, etc. These cards can further be customized as per the requirements of the organizations or individuals. Let’s understand the different kinds of corporate expense cards and their benefits in detail.
Types of corporate expense cards
There are numerous kinds of corporate travel expense cards available in the market. All of these cards are highly customizable and have different offerings as per the requirement of the customer and supplier’s policies. Here are some common types:
Corporate Credit Cards: Just like traditional credit cards corporate credit cards are issued to employees and associates to pay for the expenses incurred on the business trip. The companies can easily pay for the amount that employees use on their trips to the issuer of the card.
1. Prepaid corporate cards
Prepaid cards are funded by the company in advance, and employees can use them to make travel-related purchases up to the available balance. These cards are not linked to an employee’s personal credit or bank account. Prepaid cards are often used for controlling and limiting expenses.
2. Virtual corporate cards
Virtual credit cards are available with a limited amount for a defined period. The cards can be used to pay for the expense online or over the phone. As the cards are only available for single-time purchases, it adds an extra layer of security to online transactions.
3. Lodging specific cards
Some organizations provide lodging cards to their employees. These lodging cards are designed to cater to hotel-related expenses. The cards can be used to pay accommodation tariffs, meals, hotel services, and more.
4. Airline specific cards
To pay for the airlines, employees can use airline-specific cards. These cards help in generating rewards on the booking of the airlines and provide airline miles, priority boarding, and other such perks.
5. Expense management cards
Some of the cards can be directly integrated with the EMS. These cards help manage the expenses of the employees. The cards assist in tracking and reporting expenses and streamlining the reimbursement process.
6. Multi currency cards
As the name suggests, multi-currency cards are best for employees traveling to a foreign land. The cards can be used to pay for the expenses incurred in other currencies with lower transaction fees.
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Benefits of using expense cards
1. Payment for travel expenses
Corporate expense cards allow employees to make purchases related to travel, such as airline tickets, hotel accommodations, rental cars, meals, and other travel-related expenses. The cards can be used for both online and in-person transactions.
2. Expense tracking
These cards are typically linked to an expense management system or software that helps employees and the company track and categorize travel expenses in real time. This simplifies the process of expense reporting and reimbursement.
3. Spending controls
Companies can set spending limits and restrictions on corporate expense cards to ensure that employees adhere to the company’s travel and expense policies. These controls can include daily or monthly spending limits, merchant category restrictions, and transaction limits.
4. Receipt capture
Many corporate expense card programs offer the ability to capture and store digital receipts, either through mobile apps or by linking the card to expense management software. This eliminates the need for manual receipt collection and reduces the risk of lost or misplaced receipts.
5. Integration with expense management systems
Corporate expense cards can be integrated with expense management systems, allowing for seamless synchronization of transaction data. This integration enables faster and more accurate expense reporting and helps automate the reimbursement process.
6. Rewards and incentives
Some corporate expense card programs offer rewards, cashback, or incentives for employees who use the card for business travel expenses. These rewards can include travel points, airline miles, or cash back on eligible purchases.
7. Enhanced security
Corporate expense cards often come with enhanced security features such as EMV chip technology and PIN verification, reducing the risk of fraud and unauthorized card usage. Additionally, companies can monitor transactions in real time and receive alerts for potential fraudulent activities.
Corporate expense cards for travel provide a convenient and efficient way for employees to manage their travel-related expenses while helping companies enforce spending policies and improve expense management processes.
Conclusion
Corporate expense cards for travel offer significant advantages in terms of expense tracking, control, and efficiency. By utilizing these specialized payment tools, businesses can simplify the payment landscape for travel-related expenses, improve policy compliance, and gain better visibility into their travel spending. Careful consideration should be given to provider selection, cardholder policies, and integration with existing systems. With effective implementation and adherence to best practices, corporate expense cards can streamline travel expense management and enhance overall financial control within organizations.
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Corporate Expense Cards FAQs
What are corporate expense cards for travel?
Corporate expense cards help in paying for the expenses incurred by employees on travel.
How do prepaid corporate cards function?
Prepaid corporate cards have limited funds that are provided by the company to the traveling employee.
What are virtual corporate cards used for?
VCC or virtual corporate cards provides single-time payment for travel expenses of the employee.
How do airline-specific cards benefit employees?
Airline specific cards help in acquiring rewards, and miles on the booking of flights.
