This article has been updated in December 2023 to include the latest data.
Corporate cards are an essential tool for businesses of all sizes. If using the right solution, finance teams can use them to support employee expense management, add insight to decision-making, and implement robust cash flow control. These key benefits make them a super valuable asset for finance departments, but how do they work? In this blog, we’ll explain everything you need to know about corporate cards in 2024 and how they can benefit your company.
A corporate card is a payment card issued by banks or credit unions to organisations instead of individuals. It typically allows authorized users to make business expenses without using their own credit cards. There are many corporate card solutions on the market. For those with connected expense management software, the benefits for businesses include improved efficiency, reduced paperwork, enhanced security features, fraud protection, and more.
Corporate cards are often used for business-related costs such as travel expense management, entertainment, per diems, office supplies, and more. They provide detailed reports on what was purchased and who purchased it so that finance teams can track and complete accounting quickly and easily. The terms of each card may vary depending on the issuer. Still, most corporate cards come with features like expense reports, rewards points, or cash-back programs that allow the business to save money and increase efficiency when making purchases.
Coupled with modern expense management software, corporate card solutions can provide extra benefits, such as:
Looking to streamline corporate finances by implementing a corporate cards solution within your organization? Some of the biggest benefits of corporate cards in 2024  , include:
In conclusion, corporate cards offer numerous benefits for businesses, large and small, from improved efficiency to increased security against fraud. If you’re looking for an easy way to manage your company's spending while still maintaining proper oversight over expenses, then consider investing in corporate cards.
Businesses leverage corporate card providers to issue cards in the business's name rather than an individual employee. This means the business is responsible for repaying the balance rather than the individual cardholder. The business can then set up a system for reconciling expenses and ensure they are being incurred for legitimate business purposes.
Companies give corporate cards to their employees for various reasons, primarily to streamline and simplify the expense management process. Transactions with a corporate card are traceable and can be easily monitored for fraudulent activity. Additionally, businesses can set up alerts and notifications to monitor spending, credit limits, and other activities on the card.
A popular trend of recent years that shows no signs of waning in 2024 is to use virtual corporate cards for online transactions. A virtual corporate card is not quite the same as a physical card but instead has a virtual card number that cardholders can use for online transactions. The number can be generated for a specific transaction or vendor, providing an extra layer of security and control over expenses. These cards can also be easily connected to employees’ devices via third-party mobile payment service providers, like Google Pay and Apple Pay.
Unlike physical cards, virtual cards can often be used almost instantly, allowing a business to empower its employees to make payments for work in just seconds. Depending on the provider, virtual cards also feature the same card controls as physical card, including card freezes, spending limits, and more.
Whether you decide to go for a physical or a digital card, both can greatly simplify the expense management process, increase control and accountability, and provide enhanced security over traditional methods of payment.
Corporate cards are a game-changer for businesses, revolutionizing expense management and financial control. Companies give corporate cards to employees to streamline and simplify the expense management process, increase control and accountability, enhance security, increase productivity, and gain various rewards and perks. With Payhawk's innovative corporate card solution, managing company expenses is a breeze.
Discover how our advanced corporate card features, including enhanced fraud protection, improved cash flow control, and seamless accounting automation, can propel your organization to new heights.
But don’t take our word for it. Read how AIOPSGROUP saves two hours per day with Payhawk. Or book a demo to see for yourself with a guided walkthrough of the solution that addresses all of your questions and unique needs.
Trish Toovey works across the UK and US markets to craft content at Payhawk. Covering anything from ad copy to video scripting, Trish leans on a super varied background in copy and content creation for the finance, fashion, and travel industries.