Company Credit Card Policy

1. Introduction

Credit cards are essential tools that facilitate various business transactions, providing convenience and efficiency. However, it is crucial that they are managed and used in compliance with company policies and industry regulations to safeguard our financial resources and maintain our reputation. This section provides an overview of the Company Credit Card Policy, outlining its purpose and the importance of maintaining financial control within the organization. It sets the stage for understanding how credit cards should be used to support business operations efficiently while ensuring compliance with company standards.

2. Purpose

The purpose of the company credit card policy is to establish corporate credit card usage guidelines for the issuance and use of company credit cards, ensuring they are used appropriately for business-related expenses. This section emphasizes the need for fiscal responsibility and aims to prevent company credit card misuse penalties while facilitating smooth and transparent financial transactions.

3. Scope

This policy applies to all employees who are issued a company credit card, covering various departments and roles within the organization. It defines who is eligible for a credit card and specifies the operational boundaries and procedures that must be followed to ensure consistency and accountability across the company.

4. Objective

To promote responsible use, ensure proper management, and maintain accountability for company-issued credit cards.

5. Eligibility and Issuance

5.1 Eligibility Criteria

This employee credit card eligibility subsection details the criteria employees must meet to qualify for a company credit card. It includes factors such as job role, seniority, and the nature of business expenses, ensuring that only those who require a credit card are issued one.

Other employee credit card eligibility criteria include at least 2 years of employment at the company.

Job Role:

  • Range: Positions requiring regular business expenses or travel, such as managers or team leaders. Examples are Sales Representatives, Project Managers, Executives, and Senior Managers

Seniority:

  • Range: Typically, employees at the manager level or higher, or those with significant financial responsibilities. Examples are Senior Managers, Directors, and Team Leaders.

Nature of Expenses:

  • Range: Roles with frequent or substantial business-related expenses that cannot be easily managed through personal funds. Examples are frequent travelers, event coordinators, and procurement officers.

5.2 Application Process

Describes the steps for applying for a company credit card, including the required documentation and approval process. It outlines how employees can request a card, who must approve the request, and what criteria will be evaluated to ensure the application process is efficient and transparent.

5.2.a Complete Application:

  • Fill out the company credit card application form.
  • Include personal identification, job role, and justification for the card.

5.2.b Submit Supporting Documents:

  • Provide proof of employment, recent performance evaluations (if required), and departmental budget details (if applicable).

5.2.c Forward to Finance Department:

  • Send the completed application and supporting documents to Finance or Accounting for review.

5.2.d Complete Training and Acknowledgment:

  • Attend required training on card use and sign an acknowledgment form.

6. Usage Guidelines

6.1 Authorized Uses

Specifies the types of expenses that can be charged to the company credit card, such as travel, software purchases, and client-related expenses. This section ensures that credit cards are used only for legitimate business purposes, supporting operational needs while maintaining financial integrity.

6.2 Prohibited Uses

Lists expenses and activities that are not permitted on the company credit card, including personal expenditures and non-business-related costs. This section helps prevent misuse of company resources and reinforces the policy's focus on maintaining ethical financial practices.

6.2.a Personal Expenditures

  • Examples: Personal groceries, household items, and non-business-related clothing.

6.2.b Non-Business-Related Travel

  • Examples: Vacation expenses, personal trips, and leisure activities.

6.2.c Entertainment and Leisure

  • Examples: Movie tickets, sporting events, and concerts not related to business.

7. Expense Reporting and Documentation

7.1 Expense Reporting Procedures

 Procedure for Reporting Company Credit Card Expenses

7.1.a Submission Deadlines:

   - Monthly: Submit expense reports within 5 business days of month-end.

   - Quarterly: Submit within 10 business days of quarter-end.

7.1.b Required Forms:

   - Expense Report Form: Complete with transaction details.

   - Receipts and Supporting Documents: Attach clear, legible copies.

   - Detailed Descriptions: Provide explanations for each expense.

7.1.c. Reporting To:

   - Direct Supervisor/Manager: Initial review and approval.

   - Finance/Accounting Department: Final review and reconciliation.

7.2 Documentation Requirements

It describes the types of documentation required to support reported expenses, such as receipts, invoices, and detailed descriptions. This ensures that all expenses are properly justified and can be verified during audits or reviews, maintaining transparency and compliance with financial policies.

1. Receipts: Receipts should include the 

  • Date of the transaction.
  • Vendor name.
  • An itemized list of purchased items or services. 
  • Total amount paid.

2. Invoices: Invoices are necessary for services or goods purchased on credit. They should detail

  • Vendor information
  • Description of goods or services provided
  • Date of the invoice
  • Total amount due

3. Expense Reports: A detailed description of the expense is required to explain the business purpose. This should include:

  • Reason for the expense
  • Names of individuals involved (if applicable)
  • Connection to business activities

4. Bank Statements or Credit Card Statements: Credit card statements help verify that the expenses were charged to the company card. They should show:

  • Transaction dates
  • Merchant names
  • Amounts charged

5. Travel Itineraries: For travel-related expenses, itineraries are needed to justify the travel. They should include:

  • Dates of travel
  • Destinations
  • Purpose of the trip

8. Cardholder Responsibilities

8.1 Safeguarding the Card

Provides proper corporate credit card usage guidelines on how cardholders should safeguard company credit cards from loss, theft, or unauthorized use. It includes best practices for securing the card and the immediate steps to take if the card is compromised, ensuring that the risk of company credit card misuse penalties is minimized.

8.2 Reporting Lost or Stolen Cards

Outlines the procedures for reporting a lost or stolen company credit card, including who to contact and the actions required to mitigate potential risks. This section helps ensure prompt reporting and resolution, minimizing the impact of lost or stolen cards on the company's financial security.

9. Disciplinary Actions

Describes the potential disciplinary actions for non-compliance with the company credit card policy, including warnings, reprimands, and other corrective measures. This section emphasizes the importance of adhering to the policy and the consequences of failing to do so, reinforcing the company's commitment to financial discipline and accountability.

Disciplinary Actions for Non-Compliance with Company Credit Card Policy

Verbal Warning:

  • An informal discussion addressing minor violations.

Mandatory Training:

  • Required completion of additional policy training.

Reimbursement of Improper Charges:

  • Repayment of unauthorized or personal expenses.