I am submitting this on behalf of one of my clients. They would like to know what other large companies are doing as far as the payment method of either corporate or individual liability cards? What are pros/cons of the method they are using? Thanks in advance!
I haven't seen any customers reply yet so I'll jump in with my 2 cents. On the client-facing training team I get to see what a lot of our customers are doing and in my experience the larger customers tend to move towards company-billed / company paid (CBCP) cards. This puts all the liability on the company, but the main pro is it allows them to pay the bill in-full every month and eliminate late fees. The cons are they now have to track users card charges more closely to make sure things are submitted in a timely manner and if the user makes a personal transaction on the card the company is now responsible for tracking and collecting those amounts from the user, which can be a challenge.
Something else to consider, my understanding is CBCP cards tend to offer higher rebates than the other types of cards. This can be a huge benefit for the customer. I have spoken to a number of larger customers where they had enough volume on their CBCP program that the rebate was large enough to cover their annual Concur costs and then some. The way they put it is "as long as we have this volume on our card then Concur is "free" to us." Who doesn't like free, even when it is in quotes?
in my previous project (MNC in 60+ countries with 170k+ users in Concur) we had a mix of different payment types. Preffered global - CBCP, but then due to local legislation/global credit card provider availability in the country we had to implement IBIP and IBCP sometimes. The main reason to implement CBCP was great rebates, however it resulted in more work for accounting department to recconcile it, so you have to consider that when running RFP/building business case. From cash management perspective IBIP or IBCP is much better as well as you don't have to pay it as long as employee have not submitted report, while with CBCP in many cases it takes longer to submit expense report. If your client will opt for CBCP, then make sure he has a process in place to temporary suspend corporate credit cards of employees who are not doing their expenses. That helps to avoid situation where you have thousands of unsubmitted transactions resting in accruals for months (in our case it was years)..We ended up having millions of accruals and huge backlog to clear just because that company decided not to cancel any credit cards for "bad guys"...2 years later with millions in backlog they had to review it and they started cancelling cards if expenses were not submitted for more than 60days.
Anyway feel free to drop me a message privately if you need more info.
And you can find more details here:
We use IBIP and this forces employees to complete reports for reimbursement and to pay their corp cards. Using CBCP needs more people to review and administer for any personal spend and retrieve that $ from the employees, along with getting reports in a timely manner. There are only 2 people in my group and manage other functions with Travel/Expense. We also have a stripped Central Billing for our airfare, so the airfare is charged to the employee's card but stripped off and paid directly to the card account. We use the Concur expense report to then reconcile the trip. We require one report per month and also batch every night so employees receive their reimbursement 4 business days after their mgr approves the report.
Our mtg cards are on an IBCP platform, since these have to be used only for business purposes, and are paid directly, reconciled then within 15 days.