Corporate Credit Card Policy

The Corporate Credit card policy was adopted to enhance the payment performance and to simplify the clerical processes. The plan of action of this card was high volume but low value transactions. Corporate credit card policy helps to strengthen the cash management effectively and reduce overall purchase processing cost

Usage:

The Corporate credit card policy enables employees to conveniently pay business expenses. This policy is also meant to communicate employees about the application procedures for getting the Corporate Card. Not only this, corporate credit card policy also impart the users about when to use this card and what benefits and services one can get by using this corporate card.

Rule:

Rule of paying Corporate card Bill:

Normally a monthly statement is sent directly to the customer. But it is the customer's responsibility to pay all his corporate card bill in full upon the receipt.

Benefits:

The major benefits of implementing corporate credit card policy are:

• Less paperwork is needed
• One can get the items and services in a faster way with more flexibility
• Processing cost of purchases reduces, as requisitions, orders, invoices, or cashes cuts down

Benefits from suppliers point of view:

• possibility of instant payment
• Due to improved flow of cash, cost of invoicing and collection reduces

Policy Statement:

The main objective of corporate credit card policy is to shape the transaction processes and improve the efficiency while accepting goods and services or payment to suppliers.

Some major policies:

Corporate Credit Card policy regarding issue, amendment and method of Withdrawal:

• Issuing a corporate credit card: The authority can not issue the corporate credit card to any visitor or casual staff.

• Credit Limits: the credit limit on corporate credit card is normally be decided by the expected monthly expenditure incurred by the position held within the unit. If one purchases less than $500.00 per month, his card limit should be $1000. In this way, if he purchases anything less than $2000.00 per month, his card limit should be $2500. If the corporate card is expended for travel purposes, then the card limit will be determined on the basis of frequency of traveling by the staff member.

• Approval: The approving officer have the power to either disapprove the application or cut down the credit limit if not justified enough. The applicant will also needs to lodge on the basis of application procedures.

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