Corporate Credit Cards

Ideal for governments and large organizations

A business credit card generally refers to the small business sector, whereas a corporate card is aimed at governments, large companies and nonprofit organizations. These corporate cards are often tailor-made for the demands and needs of the individual company or organization, and for this reason you won’t usually see them advertised in the mainstream media. The cards are often advertised in specialty publications, and credit card companies may approach potential corporate customers directly. If you’re interested in ordering corporate credit cards, you can also inquire about them with one of the issuers.

These credit cards are especially popular with large charitable organizations, along with city, state and federal government departments. This is because these organizations often need to track, review, approve and reimburse their members and employees for various types of travel and entertainment expenses by using custom-designed software programs.

Another difference between corporate and small business credit cards is that corporate cards are usually issued in the name of the corporation, not the person who is using the card. This is important as American business law states that a corporation is considered to be an individual and the organization is responsible for paying the credit card debt off, not the people who are using the cards. Each corporation then has its own policy on any repayment plans between itself and its employees or members.

Corporations and governments often order dozens of credit cards and many of them come with benefits such as special hotel rates and air miles. Most cards also come with relatively low interest rates as the companies and organizations using them are generally considered to be good credit risks. Many of these cards also have no preset spending limits, and it’s up to each individual organization to decide if any limits should be imposed on specific people who are using the cards.

Because large corporations and organizations often make hundreds of transactions a week, it’s important that you keep track of all your purchases for security reasons. A corporate card could easily be lost or stolen for a few days before anybody realizes it’s missing. This is because many corporate credit cards are used for transactions all over the country, and possibly the world, and it may be difficult for the organization to notice any unusual spending trends.