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

How to compare employee credit cards

From personal assistants to CEOs, there's a wide range of people who can benefit from company credit cards.

Last updated:

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 our partners.

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

Our pick for no-annual-fee employee cards

American Express® Blue Business Cash Card

  • Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
  • From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power§.
  • Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the card, your payment history, credit record, financial resources known to us and other factors.
  • 0% intro APR on purchases and balance transfers for 12 months, then a variable rate, 14.99%, 17.99%, or 20.99%, based on your creditworthiness and other factors as determined at the time of account opening.
  • No annual fee
  • Terms apply
Read less
Read more
See Rates & Fees
Promoted

Compare business credit cards

Updated September 22nd, 2019
Name Product Filter values Rewards Purchase APR Annual fee
2% cash back on all purchases on up to $50,000 per calendar year, then 1%
0% intro for the first 12 months (then 14.99% to 20.99% variable)
$0
Earn 2% cash back on all purchases on up to $50,000 per calendar year, then 1%. Rates & fees
2% cash back on all purchases
19.24% variable
$0 intro annual fee for the first year ($95 thereafter)
Earn $500 after spending $4,500 in the first 3 months.
1.5% cash back on all purchases
0% intro for the first 9 months (then 15.24%, 19.24% or 23.24% variable)
$0
Unlimited 1.5% cash back on every purchase, every day.
2x points on everyday business purchases on up to $50,000 annually, then 1x points
0% intro for the first 12 months (then 14.99% to 20.99% variable)
$0
Earn 2x Membership Rewards® points on everyday business purchases on up to $50,000 with no category restrictions. Rates & fees
2x miles on all purchases
19.24% variable
$0 intro annual fee for the first year ($95 thereafter)
Earn unlimited 2x miles on every purchase for your business, with no blackouts or seat restrictions, and no minimum to redeem.

Compare up to 4 providers

What is a company credit card?

Company credit cards are just like personal credit cards, except they’re designed with specific perks and tools to benefit businesses. With company credit cards you can easily analyze and manage your employee spending and earn rewards on business-specific purchases like office supplies and business travel.

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:

Small business credit cards

Business credit cards are linked to a 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 cash back, points or frequent flyer miles for their spending. Additionally, business credit cards can provide a range of extra benefits, including liability insurance, spending reports and compatibility with popular accounting software programs such as Quickbooks or Microsoft Excel.

Corporate credit cards

Corporate credit cards don’t require a personal guarantor. Instead, you’ll need to submit your company tax ID number and the bank will audit your company financials. Once you get the cards, you’ll start building your company credit. And you’ll only stain your company credit score without affecting your personal credit if you fail to make your payments on time.

This type of card offers higher spending controls and powerful analytics tools to help you monitor and optimize your company expenses. This is a great choice for companies with a large number of employees where tracking your business expenses can be difficult.

Unlike regular cards that are offered by almost any bank, corporate cards are only offered by:

  • American Express
  • JPMorgan Chase
  • Citibank
  • Capital One
  • Wells Fargo

Personal credit cards

Employees may choose to use a personal credit card for their work expenses. The main benefit of this is that you can choose your own card. 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. Usually this is the best option for an employee card as you’ll get to earn rewards for business spending.

The downside of using a personal credit card for work spending is that you’ll 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. Also, work-related purchases can put a strain on your utilization ratio, especially if a you have low credit limit.

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’ll have to prove that you only used the card for work expenses and that you weren’t reimbursed for what you claim.

Comparing employee credit cards

Pros

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

Cons

  • Some company credit cards report your activity to personal credit.
  • Personal liability options could leave you accountable for any issues.
  • You may not be able to choose the business credit card you want.

What to consider when choosing company credit cards

When you’re looking for company credit cards, you should consider what they offer. Primary consideration factors should include:

  • Reporting tools. Consider getting cards with solid reporting tools if your company has many employees. This can help you optimize your spending and negotiate better terms at merchants where you spend the most money.
  • Spending controls. Opt-in for a card with spending controls for your employees. Controls usually include times and locations that the employee can use their card — or controls on specific categories, like gas, office expenses, travel and more.
  • Interest rates and fees. The variable interest rates for purchases, cash advances and balance transfers, as well as the card’s annual fee — both for primary and additional cardholders — can sometimes determine whether the company cards you’re looking at are worth having.
  • Rewards programs. Company cards can offer a wide range of rewards that can be earned by all cards, but the rewards are usually added to the main account.
  • Complimentary extras. Some cards offer travel insurance, car rental insurance and even business liability insurance, just be sure to check whether these perks only apply to the primary account holder or if they’re available to the authorized users as well.
  • Other fees. Credit cards may apply a range of other fees, including late payment and overlimit charges, 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.

4 tips for using a company credit card

In case the company card you’re using doesn’t have active spending limits, be sure to:

  1. 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.
  2. 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.
  3. 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.
  4. Keep your receipts. In case there’s an error or if any issue arises, you’ll always have proof of your spending.
Benefits of a company credit card

Employer benefits

  • Spending limits and controls.
  • Track and monitor your employee spending.
  • Reduce fraud and misuse.
  • Earn rewards for the master account.

Employee benefits

  • You don’t have to use a personal credit card.
  • Won’t affect your credit score if you’re not liable for the card.

What can I not use my employee credit card for?

You shouldn’t use your employee credit card for personal purchases. Aside from legal issues, it’s likely that you’ll be liable for those purchases and you may lose your job.

Bottom line

Company credit cards can be a great choice for your business if you have a number of employees and you want to simplify their spending process. With a company card, you’ll get better spending controls and limits, and you’ll be able to monitor and track employee card activity with ease.

If you’re not certain which credit card can serve your business best, check out our business credit card guide and compare your options.

Frequently asked questions

Back to top
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.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 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