Corporate card FAQs: Common mistakes and how to avoid them

Corporate credit cards can be a powerful tool for managing business expenses. However, if used improperly, they can lead to financial issues, security risks, and administrative headaches. Find the answers to your corporate credit cards questions below.

What should we include in our corporate card usage policy?

One of the biggest mistakes companies make is issuing corporate credit cards without a clear usage policy. This can lead to confusion, overspending, and even misuse by employees. A well-defined policy helps set expectations and ensures responsible use.

What to include:

• Spending categories: Define what’s allowed (e.g., travel expenses, office supplies) and what’s not (e.g., personal items).
• Individual limits: Clarify spending limits based on each employee’s role to prevent overuse.
• Reporting procedures: Specify how employees should report expenses and handle receipts.
• Consequences for misuse: Outline actions taken if policies are violated.

How often should we monitor transactions?

Even with policies in place, monitoring expenses is essential to prevent unauthorized spending. If companies neglect regular monitoring, they risk overlooking unnecessary charges, potential misuse, or fraud.

Set a monthly (or even more frequent) review process. Assign a finance team member or a designated employee to keep an eye on spending and use tracking tools available through most corporate card providers, which often include alerts and transaction summaries.

Why are individual spending limits important?

Some businesses issue corporate cards without individual spending caps, which can lead to overspending and strain on the company cash flow. Customized spending limits for each employee based on their role can provide better control over expenses.

Tailor spending limits to each employee’s needs. For example, a sales representative who travels often may need a higher limit than someone who only purchases office supplies. Adjust spending limits as employee roles or responsibilities change.

What security measures should we take with corporate cards?

Corporate credit cards are convenient, but they also come with security risks. Neglecting proper security precautions can make your business vulnerable to fraud or cyber-attacks.

To keep your business safe, choose cards with security features like fraud detection, multi-factor authentication (MFA), and real-time alerts. These measures act as an additional layer of security. 

Educate employees on best practices, such as using secure websites for transactions and reporting lost or stolen cards immediately. 

How can we make sure we reconcile statements correctly?

Skipping the reconciliation process is a common mistake that can lead to duplicate charges, errors, or missed fraudulent activity. Reconciliation – the process of verifying financial transactions to align expected payments with actual ones – helps track expenses accurately and ensures every charge is legitimate.

Establish a monthly schedule for reconciling statements. Each cardholder or a finance team member should review charges and match them with receipts and approved expenses. Some corporate card providers offer automated reconciliation which simplifies the process and minimizes the risk of human error.

Should employees use corporate cards for personal expenses?

Personal expenses on corporate cards can create accounting issues and add unnecessary complexity to the reconciliation process. Even if employees plan to reimburse the company, personal expenses can lead to policy violations and increase administrative work.

Make it clear in your card policy that personal expenses are prohibited. Consider reimbursing employees for business-related charges on their personal cards when needed. This simplifies your accounting and reduces the chance of misuse.

Are there tools to help us track expenses automatically?

Many corporate cards offer automated expense tracking tools that integrate with your enterprise resource planning (ERP) system, making it easier to manage and categorize expenses.

Ultimately, choose the payment solution that will elevate your business, making your payment process efficient, fast, and secure.

For more insights and updates on corporate payments, check out:

• Your guide to virtual card rebates
• 2025 payment trends
• Is the secret to better cash flow management AI?

Learn more about how WEX payment solutions can be tailored to your business, so you can accelerate and streamline operations while creating lasting growth and success for your organization.

Stay up to date on the latest in business payments by subscribing to our blog! Simply hit the “Subscribe” button above or submit your email address in the form below.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax, or investment advice, you should consult your own legal counsel, tax, and investment advisers.