Issuing credit cards to employees is a trust based exercise. Employers count on their employees to use their credit cards appropriately and not abuse the privilege. To ensure that trust isn’t broken, it falls upon employers to draft a set of policies to outline proper credit card usage. What follows is a list of tips to be taken into consideration when formulating an employee credit card program.
Setting clear guidelines outlining which employees are eligible to receive a credit card will prevent misunderstandings and employee resentment. Being issued a company credit card can be interpreted as a status symbol by both the recipient and their coworkers. For this reason there should be a clear explanation as to why certain employees receive credit cards whereas others do not. Transparent rules explaining the criteria for the issuance of cards can prevent jealousies and lowered company morale.
Before a card is issued, a recipient should be educated on what constitutes acceptable and unacceptable spending behavior. They should also be informed of the consequences of improper spending. Without effectively communicating these guidelines from the outset, a company runs the risk of credit card misuse and inconsistent disciplinary measures.
Using credit cards as part of an expense management system can cut down on a lot of paperwork. However, a company should still have expense reporting procedures in place. Regardless of your company’s expense report requirements, a formal policy outlining employee obligations will prevent any confusion.
Incorporating regular reviews of the employee credit card system is important for both the company and the employees using the cards. A regular review will allow the company to ensure the expense system remains efficient while letting the employees know of any changes or concerns regarding their spending privileges. Regular reviews will also improve communication between the company principals and their employees.
The Emburse Employee Credit Card
Emburse now offers employee credit cards as part of its expense management platform. To learn more about how Emburse can streamline your business expense systems, schedule a free demo today.