Corporate Credit Card Policy

What is a credit card policy?

A credit card policy is an internal corporate document for an organization or business that defines the terms and conditions of using corporate credit cards by employees and staff. This document template usually defines:

• approval and issuance of corporate credit cards;
• categories of employees eligible for corporate credit cards;
• list of eligible business expenses;
• list of prohibited business expenses; and
• approval of incurred business expenses.

The present company credit card policy template is suitable for various businesses, organizations, and startups operating within the U.S. It does not matter if you run a multimillion-dollar business or a boutique firm, as management of business credit cards and their usage by staff always requires a lot of attention.

How to draft a sample corporate credit card policy?

Creating a corporate policy from scratch is a challenging task. It does not only require a solid legal knowledge but also writing the document in plain, clear, and professional language. On top of that, failure to include certain clauses may result in a sample corporate credit card policy not being valid. Do not worry, we’ve got you covered. Below we made a short checklist for you to keep in mind when creating a business credit card policy for your business or organization.

Scope of Application

In this section of a credit card policy, you must define to whom exactly this policy shall apply. Usually those are employees in your company or organization who are eligible to get a corporate credit card for performing their daily job duties. To make things even clearer, the text of this policy must define:

• exact categories of employees eligible for card issuance (e.g., full-time and part-time employees, remote workers, etc.);
• person within a company’s management eligible for the approval of issuance of credit cards for staff; and
• process for how an employee can request issuance of a credit card.

Business Expenses

Every credit card policy sample aims to clarify types of expenses for which a corporate credit card could be used, as well as getting approval for those expenses. In this regard, it is essential to address the following information in the text of this policy:

• Business expenses without a prior approval. Usually every company or organization preauthorizes by default certain expenses for their staff. The best way to do so is to define a maximum threshold in U.S. dollars below which an employee can use a credit card without getting prior authorization. It is up to the employer to decide the exact amount they are comfortable going with.
• Pre-authorized business expenses. Those are expenses that bypass the minimum allowed threshold, which means an employee must seek prior approval first. An authorization process largely depends on a company’s internal infrastructure. In some businesses an approval process could be straightforward, while in others it may require an employee to go through multiple stages of approval. All in all, a business credit card policy must define a person or position within a company who has a right to issue such an approval as well as a period of time within which such an approval must be issued.
• Prohibited expenses. A well-drafted credit card policy template must include a list of expenses an employee cannot pay for using corporate credit cards. Usually those expenses include personal non-business expenses, purchase of alcohol or entertainment not connected to business or work, gambling or casinos, covering non-approved business expenses, etc.

Staff Obligations

As a part of employment, staff must comply with all internal organization’s policies, including this enterprise credit card policy. Apart from that, employees must also:

• not to give their authorized corporate credit cards to other staff or third parties;
• not to use credit cards for unapproved business or personal expenses; and
• keep all checks, invoices, and other documents proving incurred expenses, etc.

Stolen Cards

Another important section a solid company credit card policy must include is a list of actions an employee must perform once a corporate credit card is stolen or missing. In this regard the text of the policy must define:

• a person to whom information about a missing or stolen card shall be reported;
• a period of time within which such a notification shall be made (e.g., 24 hours); and
• consequences of not reporting on time (e.g., disciplinary or financial charges).

Policy Acknowledgment

Every credit card usage policy template shall define the process of communication of this policy to the company’s staff and employees. Neither federal nor state laws define the exact way companies must communicate their policies internally. Practically speaking, the most common ways to inform your employees about the new policy are the following:

• to send a copy of the adopted policy to their working email;
• to make a post on a company’s intranet or backoffice;
• to distribute physical copies of a newly adopted policy amongst all employees and staff.

How to customize a company credit card policy?

To get a fully customized corporate credit card policy template, follow the instructions given below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format—credit card policy PDF or Word.
4. Make a payment.
5. E-sign, download, print, and distribute this policy amongst your employees.