As your business grows, you may decide to distribute business credit cards to your employees or at least to employees in management positions. There are some risks involved in allowing employees access to the company card. Handled properly, a business credit card makes purchasing and expense tracking much simpler.
Set Limits and Create Rules
Each employee needs to know the limit on the business credit card. They also need to know how they can use the card and what are considered inappropriate uses for the card. For example, using the card to purchase a meal while traveling on business is acceptable, but using the card to gamble in the hotel’s casino is not.
Put your rules and limits in writing and give a copy to your employees before handing out the credit card. Clearly list acceptable uses for the card so that there is no gray area or room for confusion on the employee’s part. The employees should sign the policy, stating that they understand it and will follow it.
When you give your employees credit cards, you need to be ready to act if one of them breaks the rules or goes over the limit on the card. You can institute a warning system or can choose to fire a person immediately if he uses the card inappropriately. Warnings are more lenient and may result and future abuse. Firing someone sends a strong message and will most likely insure that no one else in the company will abuse the card.
Consider Merchant Category Codes
As a business owner, you can set up merchant category codes with the credit card company to prevent the card from being used inappropriately. These codes may save you a lot of headache, as they stop any problems before they can start. The codes are programmed into the card and block it from being accepted at places you specify, such as bars and clubs or ATMs.
For more information, go to Business Credit Card at http://www.unsecuredbizloan.com/business-credit-card