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guevared
Occasional Member - Level 1

Use of Personal Credit cards vs. a Corp Credit card

Our organization is contemplating moving away from a Corp. CC program for T&E to a personal CC use.

Intersted in Pros/Cons to each strategy from this audience for both the company and the users(employees).  Thoughts?

3 REPLIES 3
Munari_alEXPert
Frequent Member - Level 1

dear @guevared 

this would be very unusual and means that the experierience got from Corporate card didn't work as expected. For the Company own interests, Corporate cards are best without doubt. Maybe the company should review contracts with the Corporate cards, increasing rebates, delay for late payment charges, or cards blocked, and focusing on specific trainings to "difficult" employees/departments.

 

Corporate CC:

Pros:

- Automatic feeding of transactions into the system;

- Clear visibility of accruals for transactions not submitted;

- Clear visibility of employees late on submitting expenses;

- Limited risk of fraud transactions or fraudelent expenses;

- Expense rebate (cash back) based on employees expenses.

 

Cons: 

- Risk for employees not submitting expenses with long delays (not on time), to have their personal credit rating score effected

 

 

Personal Credit card:

Pros:

- No risking credit rating effected for delays of submitting expenses;

- Have cash back on their personal account based on expenses paid on behalf of the company;(no relevant for the company)

 

Cons:

- Transactions entered manually like for "cash" transactions, more manual work;

- Risk to have transactions entered and expensed multiple times by just editing date, or exchange rates..

- No control for the company for real details of accruals.

 

 

 

 

Kind Regards

Alessandro Munari - Travel Expense Project Manager
https://www.linkedin.com/in/alessandro-munari/
Nancyagfa
Routine Member - Level 2

I have an add'l Con for personal cards - no visibility or tracking of credits for reimbursed items.

MSTEEN
Routine Member - Level 1

Hello, guevared. 

 

There are reasons why a company wants to move away from the corporate card program.  But, could it be possible the current supplier does not meet your needs?   Does the company want to move away from the liability of the card program? You did not mention which type of card program. 

There are several card programs that will shift the company's liability to the cardholder and the company will still get the transparency it needs for the spend. 

 

Let me know if I can help and be happy to connect with you 

Regards,

Maria Steen

 

Maria Steen