finder.com
US
AU
NZ
UK
CA
SG
More

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

What is a corporate credit card?

An excellent credit card option for large businesses.

Kliment Dukovski
Kliment Dukovski

Updated

Fact checked

Corporate credit cards are designed for companies with revenue in the millions and with a large number of employees. That’s because corporate cards come with features like employee spending tracking to reduce fraud and misuse, manual-task automation and streamlining finance management.

What's in this guide?

What’s the difference between corporate and small business cards?

The size of the company these cards are meant for is the main differences between corporate and small business credit cards. This table explains a few other key differences.

Corporate credit cards Small business credit cards
Who are they for? Issued to large companies and corporations with more than $1 million in revenue. Designed for the small business owner with one or two employees with access to a company credit card.
Who is liable? The company is entirely liable for all debt. Before issuing the card, the bank reviews the company’s finances and uses some of its assets as collateral. However, some banks will tailor cards allowing you to choose your liability options. In most cases, you are personally liable for any debt you incur on these business cards.
Do they report to personal credit? No. Your personal credit won’t be affected. Instead, all card activity is reported to business credit bureaus. Depending on which card you choose, the bank may report to personal and business credit bureaus. Your personal credit can take a hit if your business runs into financial trouble.
Can I monitor employee spending? Yes. This is the main perk of this type of card, especially if your business has several employees with access to business cards. You can easily track spending for each employee and approve reimbursements. Some banks offer spending management tools for small business credit cards. However, these are not usually as efficient as the custom-designed software used by corporate credit cards.

Who else can use corporate credit cards?

Corporate cards aren’t always limited to private entities. Government agencies and nonprofit organizations could find these cards helpful as well.

Brex 30 Card
Our pick for a small business corporate card
Brex 30 Card

Pros and cons of using a corporate credit card

A corporate credit card comes with some benefits, but there are downsides as well.

Pros

  • Management of expenses. With more employees using cards, it’s easier to manage spending with the tools offered by corporate cards.
  • Spending controls. Set spending limits and alerts for all of your employees to help manage your budget.
  • Fraud reduction. With alerts and reports, you can manage fraudulent spending before it gets out of hand.
  • Powerful reporting tools. Reporting tools put your employee’s business expenses all in one place to help you generate reimbursements and manage spending.
  • Less personal risk. Corporate cards don’t affect personal credit scores. Your business is responsible for all debt accrued on the cards.

Cons

  • Annual fee. Corporate cards may cost more than small business credit cards. Especially if you have a large number of employees and each card comes with an annual fee.
  • Can’t carry a balance. Because most corporate cards are charge cards you will have to pay your balance in full before it’s due.
  • Poor rewards structure. If you’re in it for the rewards, corporate cards may feel stingy. That’s because they either have no rewards program or they let you earn a meager 1x points on all purchases.
  • High eligibility requirements. You can get a small business credit card even if you’re a sole proprietor with no employees. But to get a corporate card, you need to have at least $1 million in revenue each year.

How do I qualify for a corporate card

The eligibility criteria vary between providers. In general, you need to have a revenue of at least $1 million, and some providers may even require a certain number of employees to use the card, to charge a certain amount each year and your company to be registered as an S or C corporation.

Should I get a corporate card?

If you need a large number of employee credit cards and if your business has a revenue of at least $1 million, a corporate credit card may be a better choice than a small business credit card.

Which banks issue corporate credit cards?

  • JPMorgan Chase corporate card. You can choose between six available card options. This includes cards that offer rewards, streamline business-to-business purchases, give perks for travel and entertainment expenses and help government and nonprofit agencies.
  • American Express corporate card. Select between seven corporate cards that streamline spending on travel and offer cash back on all purchases for a range of employees.
  • Citibank corporate card. With eight cards under the Citibank umbrella, this is the largest selection of corporate cards you can find. Choose between travel cards, cards for meeting and event expenses and virtual account cards.
  • Capital One corporate card. The only corporate card you’ll find with Capital One is its One Card that offers benefits like rewards, unlimited employee cards and no foreign transaction fees.
  • Wells Fargo corporate card. The WellsOne® Commercial Card reduces manual processes by up to 90% and helps you expand your business globally with cards denominated in local currency.

What to consider when choosing a corporate credit card

Before you choose a corporate card, here’s what to keep in mind:

  • Annual fee. Most corporate credit cards have an annual fee from $0 to $200, and some charge for each card your business owns. Make sure you can make the annual fee worth it through rewards and cash back before you choose.
  • Interest rates. Most corporate credit cards are considered charge cards with no APRs. So you’re expected to pay the balance in full monthly.
  • Foreign transaction fees. You can find strong travel corporate and business cards that waive the foreign transaction fees. If you choose a card that doesn’t focus on travel, you could be on the hook for fees at around 3%.
  • Rewards. Rewards for corporate cards are unimpressive at about 1x for all purchases, if they offer any at all. If your card offers rewards, you can arrange it so your employees can use rewards as a perk, or you can accrue them on the main account to boost business earnings.
  • Eligibility and business requirements. For corporate cards, eligibility criteria vary. But in general, your business will have to earn at least $1 million to $10 million annually.

Who is liable for corporate credit card expenses?

Corporate liability is most common with corporate credit cards. But if your business spends a lot and has many employees, some banks may tailor a liability program specific to your business.

  • Corporate liability. In this case, the company is liable for all charges, except in specific circumstances when there are unauthorized charges.
  • Individual liability. This program holds the employee fully liable for charges. Card issuers check employee credit scores with a soft pull and require that employees submit expense reports for company-related purchases.
  • Combined liability. This makes both the company and each cardmember jointly liable for the credit card. In this case, the company isn’t liable for purchases that aren’t related to the company.

Tips for using a corporate credit card

  • Consider creating a corporate credit card policy so your employees understand what spending is allowed in your company.
  • Set up spending limits and controls for employee cards to help manage spending and set parameters.
  • Setting up alerts to monitor card activity can help reduce fraudulent spending and help manage your budget.
  • Incentivize employees by allowing them to cash in rewards for personal use.

Featured cards: JP Morgan Chase corporate cards

JP Morgan Chase offers six corporate cards and are sold as commercial credit cards:

  • Single-Use AccountsSM. Also called SUA, it acts like a check that provides you with a 16-digit virtual account number for each payment. This helps you reduce check writing and standard card payments, and makes your payments more efficient.
  • Purchasing Card. Aimed at business-to-business payments with the goal of simplifying and managing purchases.
  • Corporate Card. This card is meant for businesses that spend on travel and entertainment.
  • One Card. Businesses that need both business-to-business management and traveling and entertainment spending can get them with One Card.
  • Corporate Flex Card. The only JP Morgan corporate card that lets you earn reward points on all of your purchases.
  • GSA SmartPay® 2 Solutions. Designed for government agencies to help streamline payment and procurement processes.

Compare small business credit cards

If your business is not ready for a corporate card, consider applying for a small business credit card.

Data indicated here is updated regularly
Name Product Rewards Purchase APR Annual fee
Ink Business Preferred® Credit Card
Ink Business Preferred® Credit Card
3x points on the first $150,000 on travel and select business categories annually, then 1x after and on all other purchases
15.99% to 20.99% variable
$95
100,000 bonus points after you spend $15,000 on purchases in the first 3 months after account opening. That's $1,250 toward travel rewards when you redeem through Chase Ultimate Rewards&reg
Apply now
View details
Ink Business Cash℠ Credit Card
Ink Business Cash℠ Credit Card
5% at office supply stores, on Internet, cable and phone up to $25,000 combined annually (then 1%), 2% on gas and dining up to $25,000 combined annually then 1% after that and on all other purchases
0% intro for the first 12 months (then 13.24% to 19.24% variable)
$0
$750 bonus cash back after you spend $7,500 in the first 3 months.
Apply now
View details
Ink Business Unlimited℠ Credit Card
Ink Business Unlimited℠ Credit Card
1.5% cash back on all purchases
0% intro for the first 12 months (then 13.24% to 19.24% variable)
$0
$750 bonus cash back after you spend $7,500 on purchases in the first 3 months after account opening.
Apply now
View details
United℠ Business Card
United℠ Business Card
2x miles on United, restaurants, gas stations, office supply stores, local transit and commuting, and 1x miles on all other purchases
16.49% to 23.49% variable
$0 intro annual fee for the first year ($99 thereafter)
Earn 75,000 miles once after spending $5,000 in your first 3 months.
Apply now
View details
Universal Premium Mastercard®
Universal Premium Mastercard®
3 cents off per gallon when you buy 30,000 or more gallons in a month plus 3 cents off at the Retail Savings Network
27.24% variable
Up to $120
Earn 3 cents off per gallon when you buy 30,000 or more gallons in a month plus 3 cents off at the Retail Savings Network.
Apply now
View details
loading

Compare up to 4 providers

Bottom line

With more invoices, employee credit cards and cashflow, your small business may be ready for a corporate card. These cards can help your business process payments easier and manage employee spending.

If your small business is still making less than $1 million annually, consider comparing small business credit cards.

Frequently asked questions

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site