Business Credit Card Policy & Procedures

When you decide to issue credit cards to certain employees you need to institute rules and regulations governing the use of those cards. It is also a good idea to have a set of procedures in place that will help to keep track of credit card spending, and keep spending under control. Company credit cards should only be issued to employees who need them for business purposes such as travel or office expenses. One of the stipulations of a company credit card should be that abusing the card will result in termination.

Personal Use

Business credit cards may provide a convenient way to fund occasional purchases and business trips, but they also present a significant opportunity for abuse. Good policies and procedures can help protect businesses from employees who use the cards to cover their personal expenses, and can protect employees by letting them know what sorts of purchases they can safely make without fear of reprisals.

One of the ways to keep a company credit card from being used by employees for personal use is to only issue cards to employees who show good financial responsibility. This may require running a credit check on employees being considered for a card. A policy should be drafted that prohibits using company credit cards for personal purchases. To help moderate this, cards should be issued to employees through the company and the company should receive the monthly bill. Employees should be required to submit an expense form to outline every expense charged to their card. If the expense sheet does not match up with the actual bill, then there may be personal use of the card. This system of checks and balances helps to remind an employee that they are responsible for how their card is used.


A company credit card should only be used for business purposes, but when an employee is on the road entertaining clients, the line between business purposes and personal use can be blurred. Each use of a company credit card should be preapproved by the company. For variable charges such as entertaining clients, a protocol should be adopted that outlines and defines acceptable forms of entertainment. Prior to entertaining clients, the employee should be given a predetermined limit on how much the company will pay for when it comes to charges on the company credit card. Charges over the predetermined amount will be the responsibility of the employee, and use of the credit card in any unapproved forms of entertainment should result in termination.


Since company credit cards will only be used for preapproved company purposes, it may be a good idea to not allow employees to carry company credit cards with them, except for specific purposes. Issuing credit cards only on an as-needed basis can help to ensure that there are no unauthorized charges being made on company credit cards.