Company Credit Cards for Employees

Running a small business is no easy feat, and we understand that your time is valuable. This is why we want to introduce you to a solution that can make your life as a small business owner easier.

Employee credit cards give your employees the freedom to pay for business expenses while keeping you in control of their spending. No more headaches from managing reimbursements or sorting through piles of receipts. With employee credit cards, you can streamline your expenses and get back to doing what you do best - running your business.

What is an employee credit card?

An employee credit card is a payment card that businesses can give to their employees or partners to make purchases on behalf of the company. It works just like a regular credit card, but it's tied to the business account, which means that the employer can set spending limits and track expenses. 

This can be incredibly helpful for managing business expenses and streamlining the reimbursement process. With an employee credit card, businesses can reduce the need for manual expense tracking and reimbursements, which saves time and reduces the risk of errors.

What types of credit cards are available for employees?

There are several types of credit cards available for employees. Depending on the needs of your company, you may choose to take out a small business credit card, corporate credit card, or personal credit card, then provide supplementary cards to your employees. 

Each type of credit card comes with its own set of benefits and drawbacks, so it's important to consider your options carefully before making a decision.

Small business credit cards

Small business credit cards are a popular choice for business owners who need easy access to a revolving line of credit with a set credit limit. With a small business credit card, business owners can make purchases and withdraw cash up to their credit limit, giving you the flexibility to manage your business expenses as needed. 

These cards are designed specifically for companies with fewer employees, making them an excellent choice for startups and small businesses. Many small business credit cards offer additional employee cards to streamline expense management. 

While small business credit cards typically offer lower credit limits and more basic features than corporate credit cards, they are still a very valuable tool for managing expenses and earning rewards. However, it's important to note that like personal credit cards, a small business credit card carries an interest charge if the balance is not repaid in full each billing cycle. Business owners should always read the terms and conditions carefully and use their credit card responsibly to avoid incurring unnecessary debt.

Corporate credit cards

Corporate credit cards are designed for larger companies with more extensive financial needs. These cards often offer higher credit limits, more robust expense tracking features, and customised reporting options. Corporate credit cards can help streamline expense management and reduce the administrative burden associated with reimbursements.

Personal credit cards

Personal credit cards are not specifically designed for business use, but they can still be used by employees to make business-related purchases. While personal credit cards may offer more flexible reward programs and other perks, they may also come with higher interest rates and fewer business-specific features. 

You should be extremely cautious if you allow employees to use personal credit cards for business expenses, as it can be difficult to track and manage expenses effectively.

Should you give employees a credit card?

Deciding whether or not to give employees a credit card can be a difficult decision for business owners. While there are certainly benefits to providing employees with a company credit card, there are also risks to consider. 

For example, if an employee misuses the card or makes unauthorised purchases, it could lead to financial loss for your business. 

However, many employee credit cards allow business owners to set spending limits and track employee spending. 

An employee credit card can also make it easier for employees to make necessary purchases on behalf of the company without having to use their own money or wait for reimbursement. 

Ultimately, whether or not to give employees a credit card depends on the needs and goals of your individual business. It's important for you to carefully consider the potential benefits and risks before making a decision.

Benefits of employee credit cards

Employee credit cards can offer a range of benefits for both business owners and employees. Some potential advantages include:

Simplified expense management: Employee credit cards can streamline the expense management process by allowing business owners to set spending limits, track expenses, and automate reimbursements. This can save time and reduce the risk of errors.

Increased flexibility: Providing employees with a company credit card can give them greater flexibility when it comes to making necessary purchases on behalf of the company. This can help to ensure that employees have the resources they need to do their jobs effectively.

Enhanced control: With an employee credit card, business owners can maintain greater control over company spending, ensuring that purchases are aligned with the company's goals and priorities.

Improved cash flow: Employee credit cards can help to improve cash flow by reducing the need for employees to use their own money to make business purchases and wait for reimbursement.

How do employee credit cards work?

Employee credit cards function similarly to regular credit cards, but they are designed specifically for business expenses and are linked to a company account. 

To obtain employee credit cards, business owners can apply to banks or credit card companies and then set spending limits and assign the cards to specific employees. Employees can then use the cards for authorised company expenses such as travel, office supplies, or client entertainment. 

Business owners can monitor card activity in real-time and receive statements outlining all charges made during the billing cycle. They can then choose to pay the balance in full or carry a balance and pay interest on any unpaid charges. 

What to look for in a business card for multiple employees? 

When choosing the best business credit card for multiple employees, it's important to look for features that will help you manage your business finances effectively:

Reporting tools 

It's crucial to have access to detailed reporting tools that allow you to track expenses, monitor spending trends, and identify areas where you can save money. When choosing an employee credit card, consider the type of reporting tools that are available and how easy they are to use. 

At Capital on Tap, we offer accounting integration tools that allow you to track spending across all your employee cards, download reports, and categorise expenses. Our tools are designed to help you streamline your expense management process and make informed decisions about your business spending.

Spending control 

To ensure employees stay within budget, make sure to choose a card that allows you to set individual spending limits for each employee to help you control expenses and prevent overspending. Many employee credit cards also allow account holders to set a transaction spend limit, allowing them to control how much an employee can spend in one transaction. 

Extra fees 

Some credit card providers charge additional fees for adding supplementary employee cards, which can quickly add up and eat into your bottom line. 

We understand the importance of keeping costs low and providing affordable solutions for businesses of all sizes. That's why we offer unlimited free employee cards with all of our Capital on Tap Business Credit Card accounts. Whether you need to issue cards to one employee or a hundred, you won't pay a penny extra.

Interest rates

As a small business owner, it's important to consider the interest rates associated with any supplementary cards that you may be considering for your employees.

Some providers charge higher interest rates for supplementary cards than they do for primary cards. This can result in unexpected costs if you're not careful. 

Rewards 

While many credit card companies offer rewards, some may not extend those benefits to supplementary employee cards. 

With Capital on Tap, you can earn 1% cashback on both the main and supplementary employee cards, maximising your rewards potential. Plus, with no cap on rewards and no annual fee, our rewards program is a great way to save money and earn valuable perks.

Supplementary cards 

Some credit card providers limit the number of supplementary employee cards you can have on your account This can be a problem for businesses with a large number of employees as it can lead to a complicated process of deciding who should get a card and who shouldn't. 

Virtual cards 

Virtual cards ensure instant access to funds from the moment your application is approved, and can be used immediately online or in-store via Apple Pay or Google Pay. 

Virtual cards also eliminate the risk of losing a physical card. With a virtual card, employees can add their card information to mobile payment systems like Google Pay or Apple Pay, giving them the flexibility to make purchases both in-store and online. 

Customer service 

When choosing a credit card for your small business, it's important to consider the customer service provided by the credit card issuer.

As a small business owner, you may encounter unexpected issues or have questions about your account, or supplementary cards. It's crucial to have reliable and responsive customer support to address these concerns. 

Frequently asked questions

What if an employee uses a company credit card for personal use? 

If an employee uses a company credit card for personal use, it's important you address the situation as soon as possible. 

First, you should remind the employee of your company's policies regarding the use of the card and make it clear that personal expenses are not allowed. 

In order to prevent similar incidents from happening in the future, you can also consider setting up spending limits, regularly reviewing card activity, and implementing consequences for misuse. 

Is an employee card the same as an authorised user? 

No, an employee card is a type of credit card that is issued to an employee by their employer for business-related expenses. 

An authorised user, on the other hand, is an individual, such as a personal assistant, who has been given permission by the primary cardholder to use their credit card for either business or personal purchases.
 

What can I put on my company credit card?

What you can put on your company credit card depends on the terms of your credit card agreement and your company's expense policy. 

Generally speaking, you should only use your company credit card for legitimate business expenses, such as office supplies, travel expenses, and software subscriptions. 

Is it a crime to use a company credit card for personal use? 

Using a company credit card for personal use is not technically a crime, but it may be against the terms of your credit card agreement which can, in some cases, constitute fraud. 

While it might be tempting to use a company card for personal expenses, it's important to remember that the card is intended for business expenses only. 

Furthermore, if employees use a supplementary company credit card for personal expenses, it can lead to confusion and potentially cause issues with bookkeeping and taxes. Therefore, it is recommended that businesses establish clear guidelines and policies around the use of company credit cards to avoid any confusion or misuse.

Can a company credit card hurt your credit?

Yes, a company credit card can affect your credit, but the extent to which it does depends on how it is used.

If the card is used responsibly, such as paying the balance in full and on time, it can actually help establish and build business credit. 

However, if payments are missed or late, it can hurt your credit score and damage your business's creditworthiness. Additionally, if your company has a personal guarantee attached to the card, any missed payments or default will affect the owner's personal credit score as well. 

It's important to carefully monitor spending and payments on your company credit card to ensure it's helping rather than hurting your credit.

It’s time to streamline your expense management and earn rewards whilst you’re at it. The Capital on Tap Business Credit Card offers free and unlimited employee cards with uncapped 1% cashback on all spend.