Employee credit cards - What to know and the benefits | finder.com
employee credit cards

How to compare employee credit cards

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money.

From personal assistants to CEOs, there’s a wide range of people that can benefit from employee credit cards.

Employee credit cards help keep track of work expenses, simplify accounting, keep track of spending across different departments and ultimately streamline accounting processes. With benefits for both individuals and businesses, this type of credit card allows employees to separate their work and personal spending.

What types of credit cards are available for employees?

Most employee credit cards are business or corporate credit cards assigned to specific employees. We’ve outlined the key differences between these cards below:

Business credit cards

Business credit cards are linked to the main account and can be assigned individual spending limits from a centralized system. Providing employees with business credit cards reduces the need for expense reports and reimbursement processes, as only business funds are being used.

Business credit cards can also be linked to rewards programs, giving employers and employees the opportunity to earn points or frequent flyer miles for their spending. Additionally, business credit cards can provide a range of extras including liability insurance, spending reports and compatibility with popular accounting software programs such as Microsoft Excel.

Personal credit cards

Employees may choose to use a personal credit card for their work expenses and the main benefit of this is that you can decide on the features that are most important to you. If you want to save money on spending, you may choose a low rate or a low fee option. If you want additional benefits, a rewards or frequent flyer card might suit your needs.

If you use a personal credit card for work spending, you will also be responsible for keeping your account in order by submitting statements or expense reports to your employer in order to claim reimbursement for spending on your card.

Extra costs
There could be annual fees and interest charges that your employer won’t cover. In some cases, you may be able to claim tax deductions for these costs, but you will have to prove that you only used the card for work expenses and that you were not reimbursed for what you claim.

Comparing employee credit cards

Pros

  • Keeps work and personal expenses separate.
  • Allows businesses to track and manage work-related payments for staff.
  • Potential tax deductions.
  • Personal liability and business liability account options available.
  • Reward options.

Cons

  • Restrictions on what you can use the card for.
  • Personal liability options could leave you accountable for any issues.
  • You may not be able to choose the business credit card you want.
  • Interest rates and fees may apply for personal credit card options.

What to consider when choosing employee credit cards

If you’re in a position to choose a business credit card or a personal credit card for employee spending, it’s important to compare a range of factors to find the right option. We’ve outlined the key details to consider below.

  • Standard rates and fees. It’s important to consider the standard variable interest rates for purchases, cash advances and balance transfers, as well as the card’s annual fee (both for primary and additional cardholders). Ideally, the benefits of the account should outweigh the potential costs of an annual fee or interest charges.
  • Grace periods. Many personal and business credit cards offer up to a certain number of interest-free days for each statement period, as long as you pay your balance in full by the due date on your statements. This gives you a window of time when you can use the card without being charged interest, for example, when you’re waiting to be reimbursed for work expenses.
  • Rewards programs. There’s a wide range of personal rewards credit cards that employees could use if they want to earn points for their spending. Many business credit cards also come with rewards programs, although employees may need to request that they be included in the program to earn points.
  • Complimentary extras. Travel insurance, car rental accident insurance and even business liability insurance can add a lot of value to a card, as long as you can actually use them. In the case of business credit cards that offer additional cards for employees, some of the perks may only be available to the primary account holder.
  • Security features. Credit cards for employees often include 24/7 fraud monitoring services and liability insurance to help cover the cost of unauthorized transactions.
  • Other fees. Credit cards may apply a range of other fees including late payment and overlimit charges, cash advance fees, foreign transaction fees, emergency card replacement fees and printed statement fees.

Always check the terms and conditions before you apply so you can learn if you’re subject to fees, eligible for rewards and promotional offers, or if there are any complimentary extras.

Tips for using an employee credit card

Keep the following tips in mind to make sure that this type of card works for you.

  • Stick to work spending. It’s essential that you only use your card for business expenses. Otherwise, there could be legal implications and other issues if it’s misused.
  • Check what transactions are approved. Ask your boss or the appropriate work colleague before you use your card so that you know the cost will be covered.
  • Take note of the statement due date. Even if you’re not responsible for paying the balance of the account, make sure you check the due date to help reduce the risk of late payments and additional charges.
  • Track your spending. Keep an eye on your account spending so that you can make sure you have enough credit available for all your transactions. If you find you’re regularly maxing out the card, you may want to request a credit limit increase.
  • Provide your frequent flyer details. If you’re an employee with a business frequent flyer credit card option, you will need to provide your membership details for the frequent flyer program so that you can earn rewards points for your spending.

Before you start using an employee credit card, make sure you read through its terms and conditions and any work documents that could impact on your card use. This will help ensure that you follow the correct processes and get the most out of the card.Now that you know more about employee credit cards, you can compare a range of options and find one that really suits your needs.

Compare business credit cards

Updated August 20th, 2018
Name Product APR for Purchases (Purchase Rate) Intro APR for Balance Transfer Annual Fee
None (Charge Card)
$450
Earn 75,000 Membership Rewards® points after you spend $20,000 on purchases within your first 3 months of card membership.
$0 annual fee for the first year ($250 thereafter)
This Charge Card gives you the option to pay in full each month or to carry a balance for up to 60 days with no interest.
$0 annual fee for the first year ($175 thereafter)
13.99%, 18.99% or 20.99% variable
$0
Earn cash back with buying power to help pay for business needs.
14.99% to 20.99% variable
0% for the first 12 months (then 14.99% to 20.99% variable)
$0
$500 bonus cash back after you spend $3,000 in the first 3 months
17.74% to 22.74% variable
$95
80,000 bonus points after you spend $5,000 on purchases in the first 3 months after account opening. That's $1,000 toward travel rewards when you redeem through Chase Ultimate Rewards®.
17.74% to 24.74% variable
$99
75,000 Bonus points after you spend $3,000 on purchases in your first 3 months from your account opening with your Marriott Rewards Premier Business credit card.
24.74% variable
$0
Get the credit you want for your business, and unlimited 1% cash back on every purchase, every day
14.74%, 18.74% or 22.74% variable
$0
Unlimited 1.5X miles per dollar on every purchase, every day
18.74% variable
$0 annual fee for the first year ($95 thereafter)
Unlimited 2X miles per dollar on every purchase, every day
14.74%, 18.74% or 22.74% variable
$0
Unlimited 1.5 cash back on every purchase, every day.
18.74% variable
$0 annual fee for the first year ($95 thereafter)
Unlimited 2% cash back from Spark Cash could mean thousands of dollars each year going back into your business. No minimum to redeem.
17.74% to 24.74% variable
$0 annual fee for the first year ($95 thereafter)
50,000 bonus miles after you spend $3,000 on purchases in the first 3 months your account is open.
17.74% to 24.74% variable
$99
Earn 2x points on Southwest® purchases and 1x point on all other purchases. Plus 6,000 anniversary bonus points.
17.74% to 25.74% variable
$0 annual fee for the first year ($95 thereafter)
Earn 70,000 American Airlines AAdvantage® bonus miles after you spend $3,000 in purchases within the first 3 months of account opening.

Compare up to 4 providers

Back to top

Frequently asked questions

Back to top

Kyle Morgan

Kyle Morgan is a writer and editor for finder.com who has worked for the USA Today network and Relix magazine, among other publications. He can be found writing about everything from the latest car loan stats to tips on saving money when traveling overseas. He lives in Asbury Park, where he loves exploring new places and sipping on hoppy beer. Oh, and he doesn't discriminate against buffalo wings — grilled or fried are just fine.

Was this content helpful to you? No  Yes

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 only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our and .

US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
More info
First Access Visa Card®
First Access Visa Card®

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info
Go to site