Corporate Credit Card

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Company Credit Card

A company credit card is issued by an employer or a company to a specific employee to pay for business-related expenses. Some activities for which an employee can use a corporate credit card include hotel bookings for seminars, airfare for client meetings, etc. Companies grant such credit cards to employees so that business-related expenses are not borne by the latter.

Credit cards for corporate accounts are often misconstrued as business credit cards but there is a stark difference between both. A business credit card can be availed by anyone who needs a separate banking account for their business needs. This could be for a small- or medium-scale business. Company cards, on the other hand, are only offered to large corporations, with annual revenue in millions, to keep business expenses separate from personal transactions.

List of Top Corporate Credit Cards

Citibank Corporate Credit Card

Axis Bank Corporate Credit Card

SBI Platinum Credit Card

Kotak Mahindra Corporate Wealth Signature Credit Card

IndusInd Bank Corporate Card

YES FIRST Corporate Credit Card

How to Apply For a Corporate Credit Card

You can apply for a corporate credit card online through the official website of the respective bank. Alternatively, if you wish to opt for the offline mode, you can visit the nearest bank branch of your choice and apply for a corporate card. It is important to note that credit cards for corporate accounts are issued to registered corporations of prominence. To check the credit card eligibility for such cards, the issuing bank considers the company’s latest audited financial statements and tax-related information. So, when you apply for such a card, the financial health of the company is in focus and not that of the owner. It is important that you submit all the credit card documents as requested by the bank along with the application form.

How Does It Work

The liability against company credit cards may either be individual, corporate, or joint:

  • In case your company card has an individual liability clause, you, as an employee, must pay the credit card bill when it is generated and claim a reimbursement later

  • If the card comes with corporate liability, the company will be responsible for paying the credit card dues

  • Lastly, if the corporate purchase card has a joint liability clause, then both you and the corporation are liable to pay the bill. It is important to note that any default in bill payments in the case of joint liability has a direct impact on your own credit score

Features and Benefits of Corporate Credit Cards

Benefits for Employees

Owning a corporate purchase card is beneficial for employees in the following ways:

  • Some corporate rewards cards cover your travel expenses while letting you avail VIP lounge access at domestic and international airports. You can also use the card for foreign exchange on international travel

  • Some of the best corporate credit cards also provide travel insurance to help you travel worry-free

  • You need not worry about paying for business expenses from your own pocket

  • You can even benefit from the credit card reward points offered on the credit card

  • The 24x7 priority assistance offered on some cards can help improve your work efficiency

Benefits for Employers

Employers too can enjoy several advantages:

  • Having a credit card for a corporate account makes it easy to manage expenses as there is no need to disburse cash for miscellaneous business transactions

  • To ensure that the employee does not use the card for personal gain, the employer can choose the spending categories when handing out a credit card for company use

  • The employer can even set a credit card limit to control transactions

  • The employer can also choose where the card can be used and limit the purchases to specific merchants, depending on type and location

  • The employer can easily monitor the monthly spends done by the employee by checking the consolidated credit card statement

Adherence to Company Policies

Every company has certain policies regarding the use of its company purchase cards. It is very important for employees to familiarise themself with these policies. These may also vary based on your designation or position in the organisation. Some of the key things you should be aware of are spending limits, payment liabilities, and restrictions. The limits can be separate for different categories as well as for different merchants. As you are likely to travel using a company credit card, you should also check the travel policies along with the dos and don’ts associated with your card.

Things to Remember

  • Employees should refrain from making unapproved transactions on a company credit card as it can put them in an uncomfortable situation with the higher authority.

  • Employees must ensure that the card is used for work-related expenses only so that they do not waste company funds.

  • Often, the company does a background check to understand the financial habits of the employee before handing him/her a credit card for a corporate account. Hence, employees must make sure that they have a healthy credit score to qualify for such a card.

  • Employees must ensure that they keep their credit card safe and report loss or theft immediately.

FAQs on Corporate Credit Cards

  • ✔️How is a corporate credit card different from a business credit card?

    A business credit card can be availed by anyone who needs a separate banking account for their business, whereas only large companies can avail company credit cards.

  • ✔️Is it easy to get a corporate credit card?

    Lenders make the decision after checking the company’s most recent financials and tax filings. If the company has good financials, it is easy to get a company credit card.

  • ✔️Is personal credit score considered before approving a company credit card?

    When you apply for a corporate credit card, the financial health of the company is in focus and not that of the owner.

  • ✔️What is the difference between a corporate card and a credit card?

    The expenses borne by a credit card get deducted from an individual's personal bank account as they are generally for his/her personal needs. However, a company card is only used for business/corporate expenses, hence, the same is borne by the company.

  • ✔️Who pays for a corporate credit card?

    The employer/company pays for expenses made via a credit card for corporate accounts. However, in some cases, the liability can be either on an individual employee (subject to later reimbursement) or jointly shared between the employee and the company.

  • ✔️How do you qualify for a corporate credit card?

    The eligibility criteria to qualify for a corporate card may vary from one bank to another. At the time of reviewing the application, banks usually do an assessment of the company’s financial health and may ask for necessary documents such as profit/loss statements, annual revenue, tax filed, etc.

  • ✔️Do issuers check personal credit before they approve business credit cards?

    Yes. Even when you apply for a business credit card, card issuers are likely to closely inspect your personal credit in addition to the track record of your business. Such an exercise is done to ensure that you satisfy the eligibility criteria for the card. It also helps the credit card issuer analyse your creditworthiness and assess how likely you are to default on any credit facilities you may have availed.

  • ✔️What should be my ideal credit score to get a business credit card?

    Usually, credit card issuers require that the applicants seeking any credit card have an exceptional credit score. This is also true if you are applying for a corporate credit card or a business credit card. Therefore, it is ideal to have a credit score of at least 700 to qualify for the card. 

    In fact, a score of 800 and above will significantly improve the chances of you getting a business credit card. That said, there are also a few card issuers who may offer some relaxation on this front and allow individuals with lower credit scores — ranging from 650 to 699 — to apply for a business card.

  • ✔️Can anyone apply for a business credit card?

    All individuals who run a registered business can apply for a business credit card. You don’t necessarily have to be running a company. However, regular individuals cannot apply for such credit cards. That said, as an individual, you may be eligible for a corporate credit card issued to employees of large and established organisations. High-level employees in certain companies may be eligible for this kind of card.