Select Page


It will also have adverse effects on the What To Do If An Employee Misuses A Corporate Card’s tax liabilities. In more serious cases deliberate card misuse is considered fraud. Some corporate credit cards, like American Express cards, offer joint liability as an option. Depending on the card type, either the employer or the employee is liable for payment charges and non-payments.

What is corporate card usage policy?

What is a corporate credit card policy? A credit card policy is part of a company's accounting policies. It clarifies the terms of use of a company card issued in employees' names. These policies also aim to protect the company from inappropriate use and to make sure the repercussions are clear.

An employment lawyer can advise on options, such as subjecting employee to civil and/or criminal prosecution for unauthorized use of the card. It’s just how much is going through—that’s what surprises me—how far people can take it. If you’re not worried about expense report fraud, you should be,” said Anant Kale, the CEO ofAppZen, which uses AI to help companies manage employee spending and find invoice and expense fraud. If an internal audit reveals missing funds traced back to a particular employee, a company may use that evidence to file a legal report. Law enforcement officials may review the findings of an employer’s internal review and then conduct their own investigation.

Monitor and report spending

Our digital content is for information purposes only and does not constitute legal or tax advice. However, they do not replace binding advice and are not guaranteed to be correct or complete.

credit card misuse

Depending on the amount of money in question, this could have a serious impact on credit eligibility, investor confidence, even customer confidence. You can use automation to route card requests for approval before they get issued to ensure that company funds are being used for valid reasons. It also allows finance teams to track spending in real time, giving them the visibility they need. Many organizations rely upon the convenience afforded by credit cards to cover various expenses. Under certain circumstances, however, those employees entrusted with them might experience the temptation to use them for other than company business.

Employer Benefits of Using a Corporate Credit Card:

People can do their work faster and more efficiently because they’re able to access the company budget they need for their projects, when they need it.Empower your employees. Company card policies control employee spending, ensure compliance, and minimize fraud risk. It’s even easier to maximize your results by integrating it with Pluto’s expense management software. As per the above criteria and information, credit card issuers decide if the company qualifies for a corporate credit card or not.

credit cards

Ultimately, education, documentation, and open conversation can support your organization’s fraud awareness and preventionefforts in the long run. It’s important to clarify who, exactly, has permission to use a commercial card. The specifics of each commercial card policy will be unique to your business, but there should be no question as to who is authorized to use a commercial card. Be proactive in leading a discussion around employee misuse of commercial cards. Present the reasons why you’re granting employees the privilege of a commercial card and reinforce that the system only works when the card is used responsibly and in accordance with company policy.

Effective New Year Employee Retention Strategies Businesses can Use

If you have a common credit card that’s used by everyone in your company, employees might use them for personal purposes. Even if it’s noticed and found, it can be hard to track who did it. They also are used for personal lunches that get reported under business. An employee can also share the card with his/her coworker who is unauthorized to use the card. Company credit cards link directly to company funds or credit, and any mis-spend directly affects the company’s finances.

  • This prevents employees from using their own money and lets the company pay directly, thereby making things easier for both of them.
  • Our cards can be linked to multiple departmental budgets or a single one according to your need.
  • The offers that appear on this site are from companies from which receives compensation.
  • As the pandemic continues to get worse, so do the challenges, risks, and consequences of expense report fraud.
  • According to the Inside Indiana Business website, check charges every month and flag those that look suspicious.

The privacy policies and security at the linked website may differ from Regions’ privacy and security policies and procedures. Customer information provided in order to set up this appointment will not be used to update any customer records, and this information will only be used to service this appointment. Keep in mind that even the most straightforward commercial card policies will usually include some exceptions or special circumstances that require extra documentation or permission.

Monitoring this behavior allows you to easily track employees who consistently violate company policy, so you can take immediate action and lessen the impact to your organization’s bottom line. One is that you have an employee who has, essentially, been stealing from the company by using a company credit card for personal expenses. The other is that the person you have been counting on to look out for such problems has failed to do so – removing the one safeguard you have in place to prevent employee card misuse. Companies using business employee credit cards have an extensive expense policy in place to prevent and penalize credit card abuse. Knowing about your company’s expense compliance regulations in advance can help you spend more conscientiously than before. A one-off incident of going over budget could be an accident, but a repeated pattern is a deliberate misuse.

Fyle does much more than just streamlining your expense reimbursements. Schedule a demo with us today and hop on to the bandwagon of digital change. For advice on how to get the most from your legal spend, check out our blog. Submit a Request with your details to schedule a free half-hour consultation. Attorney fees often run more than the debt itself and the prevailing party may not want to be responsible for the legal costs.

Reserveer een tafel