A corporate card is a charge card used to cover certain expenses incurred by business people or corporate executives. The corporate card helps separate business expenses from personal expenses. Additionally, the corporate card allows a company to keep track of all business-related spending.
A corporate card can be either credit or charge. The corporate credit card allows the cardholder to use revolving credit to pay off the expenses over a period of time. The corporate charge card requires full payment of all expenses incurred during each billing period.
The corporate card is used for expenses incurred for business. These business expenses can include airline tickets, hotel and car rental, meals and incidental expenses related to official business. Some corporate cards are designed to control spending by having charge limits.
Different corporate cards have extra benefits like a rewards programs, negotiated supplier discounts, cash access and travel protection.