Once approved for an extension of credit from an issuing financial institution, a company distributes commercial cards to their employees. Employees can then make work-related purchases, such as travel, entertainment and business-to-business expenses. When William feels suffocated by his monthly payments and interest rate, he can feel tempted to rack up even more debt.
These companies generally have more competitive rewards and features to incentivize businesses to choose their companies over more traditional banks. Our list of the best corporate credit cards — both traditional banks and fintechs — are secure and worth looking into. Considering that the Blue Business Cash has no annual fee and a nice 0% APR period, it’s still an excellent value for businesses with more modest spending and travel needs or who need a 12-month window with no APR. According to our study on major credit card issuers, American Express is the third most popular credit card issuer, and when it comes to the American Express Business Gold card, it’s easy to see why.
Before a corporate credit card is activated, an employer may offer (or require) in-person or online training sessions designed to help employees learn the policies. In addition, an employer may post and update policies on its internal website. It’s always a good idea to stay informed, follow the rules, and avoid doing anything that could result in extra paperwork or be construed as fraud. Cardholders who have questions about their employer’s policies should contact the person (or department) that manages the program.
U.S. Bank Triple Cash Rewards Visa Business
- The company no longer advertises a welcome bonus or intro offer for new users.
- If you have a side hustle, run a freelance business or have a small business with revenue of less than a million dollars per year, you’ll probably want a business credit card.
- By using a business card to make larger payments, business owners can avoid racking up charges on their personal credit cards while steadily building their business credit.
- The rating of this company or service is based on the author’s expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication.
- While the benefits of a business card often outweigh disadvantages, you’ll want to know the potential downsides when deciding between a personal and a business card, too.
Because Brex is a corporate card and not a traditional business credit card, you can’t carry a monthly balance meaning there are no APR rates to worry about factoring in. There are downsides, however, as you’ll likely see higher fees per employee card, and you may have less earning potential when it comes to rewards. But corporate cards can be a good option, especially if you’re looking to move liability from the business owner and individual employees to the company. For instance, business travel cards offer perks like airline miles, airport lounge access and hotel points.
Spark Cash Select From Capital One
Once a corporate credit card is issued, both the company’s name and the employee’s name will appear on the card. Each employee typically gets their own individual credit card number, even though expenses roll up to a single corporate account. Since many employees might be issued a corporate credit card, businesses typically create guidelines for authorized expenses. For example, companies can set limits on how much cardholders can spend per transaction or at which merchants they can make purchases. While they provide typical credit card benefits, corporate credit cards are designed to meet the needs of companies that desire more full-bodied, customizable financial tools to track and control employee spending. They also have several unique characteristics that influence how they work.
Who is responsible for corporate credit card debt?
However, once they receive the card, their credit score could be impaired if they fail to make payments on time. A corporate credit card is a card companies issue to employees to make work-related purchases. The business is liable to repay the balance on the cards, rather than the business’ owners or the individual cardholders.
When To Choose The U.S. Bank Triple Cash Rewards Visa Business Card
However, getting a business credit card with no income is a risky gamble as it could impair your ability to pay off your card purchases. A business credit card is a revolving line of credit that lets you spend up to a certain amount, pay off some or all of what you owe, then repeat that process. This can help you make purchases you need, even when your cash flow is uneven. In the past, corporate cards were also pretty limited to LLCs, C-corps, and S-corps.
Arguably the most common type of business credit card is a cash-back card where you earn cash-back rewards on purchases made using the card. Whether you want cash back, travel rewards, or a great introductory rate on balance transfers, you’ll find the best credit cards for small business on this list. That said, some business cards — like the Chase Ink Business Premier® Credit Card and Capital One Spark Cash Plus — are actually charge cards, which typically require payment in full each month. The main upside to charge cards is that they generally have no set credit limit. Since they are sometimes more complex, corporate cards often come with their own designated customer service representative who can help resolve any issues quickly. These representatives are usually on-call 24/7 and have an intricate knowledge of each company’s individual needs.
Corporate credit cards can earn you points or cash back for your corporation’s purchases while offering spend management features, expense reporting tools, and more — all without personal liability. Small business credit cards tend to have fewer fees, including no additional charge for employee cards with cards such as Capital One Spark Cash Plus and the Ink Business Unlimited® Credit Card from Chase. The biggest perk attached to corporate cards is the ease of tracking employee spending. Rather than having employees make personal charges and submit expense reports or receipts for reimbursement, the company can easily manage spend limits, track budget needs and manage fraud risk.
With statement credits for TSA PreCheck, airport lounge access, dining discounts, and global card access, the BoA Executive Explorer card is a great option if travel is an important what is corporate credit card aspect of your business. Beyond flexible repayments and reasonable cash-back rates, Rho also offers unlimited physical and virtual employee cards, custom branding on cards, and card-level controls. The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.