Imposing_Policies_For_Corporate_Credit_Card_Usage - DOC

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					Imposing Policies For Corporate Credit Card Usage

Word Count:
557

Summary:
It is not clear whether when the use of credit cards started; however,
today, the usage of corporate credit cards is rapidly increasing. Many
businesses and companies are now applying to have their own corporate
credit card accounts. More and more companies are applying for a
corporate credit card due to the fact that it can be very helpful because
it allows the company to make debts.

A business that plans to apply for a corporate credit card may also
provide individual c...


Keywords:
credit card, apply for a credit card, credit card offer


Article Body:
It is not clear whether when the use of credit cards started; however,
today, the usage of corporate credit cards is rapidly increasing. Many
businesses and companies are now applying to have their own corporate
credit card accounts. More and more companies are applying for a
corporate credit card due to the fact that it can be very helpful because
it allows the company to make debts.

A business that plans to apply for a corporate credit card may also
provide individual cards to their employees. Most employees think that
their credit cards are just like money, they tend to buy stuffs and pay
off their personal debts.

But, this mentality may bring great danger to the company. Continuous
usage of corporate credit cards for personal reasons may tend to let the
company end up paying many debts. Plus, if great debts will be deducted
to the employees' salary, what will they receive during payday? Over use
of corporate credit cards by the employees can also pose great danger to
the employee's salary.

For this reason, employers must put rules, protocols or policies
regarding the employees' usage of their corporate credit cards. A
corporate credit card should be used to buy stuffs that the company or
the employee needs, which should be related to their work. If not, then
an employee must not use it otherwise. This is the main purpose of
getting a corporate credit card.

Nevertheless, it is hard for your employees not to use their corporate
credit cards, which is why it is imperative to make a policy regarding
its usage and impose this policy.
Imposing a policy and making sure that those who violate it will suffer
(suspension, warning/memo, salary deductions and etc.) may prevent them
from ever using their individual cards for their own purpose. This may
seem a bit harsh, but if you really want to prevent them from ever using
this for personal interests, you need to impose it.

In addition, the employer should do this because primarily, most credit
card issuers hold the employer as the one who's liable for all charges on
the corporate credit card account. In spite of the any verbal or written
agreement between the employer and the employee, the issuers still
consider the employer as responsible for any charges on the said account,
since he is the primary cardholder.

Putting up a policy on credit card usage may establish the procedure for
the use of corporate cards, even the protocol. This will also help the
employees in better understanding the liabilities and accountabilities
regarding their use of the cards. The employer must see to it that the
employees have read the policies before handing them out. However, these
policies must be unbiased between the company and the employees.

If the employer wants to be fair, he or she can put a limit as to how
much personal charge an employee can put on the card. Or, the employer
may also provide a policy which is beneficial for both parties. This may
be hard; however, doing so will make the company fairer and more unbiased
in the eyes of the employees.

Thus, the employees will happily oblige themselves into following the
company's corporate credit card policies. This may also with an
opportunity to improve the relationship between the employer and his or
her employees.

				
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