A Company Credit Card Policy Template serves as a comprehensive guideline outlining the rules and regulations governing the use of company-issued credit cards by employees. This document ensures consistent and responsible use of these financial tools, protecting the company’s assets and promoting ethical business practices.
Eligibility: Clearly define who is eligible to receive a company credit card, such as full-time employees, managers, or specific departments.
Card Types: Specify the different types of credit cards available, including corporate, travel, or purchasing cards, and their respective usage limits.
Card Issuance and Authorization: Outline the process for requesting and obtaining a company credit card, including necessary approvals and authorization procedures.
Cardholder Responsibilities: Clearly state the responsibilities of cardholders, including proper use, record-keeping, and timely repayment of charges.
Usage Restrictions
Authorized Expenses: Specify which expenses are considered authorized for company credit card use, such as business travel, client entertainment, and office supplies.
Prohibited Expenses: Clearly outline expenses that are strictly prohibited, such as personal purchases, cash advances, and gambling.
Spending Limits: Establish daily, weekly, or monthly spending limits to prevent unauthorized or excessive expenditures.
Foreign Currency Transactions: Address the handling of foreign currency transactions, including exchange rates and currency conversion fees.
Expense Reports: Require cardholders to submit detailed expense reports within a specified timeframe, including itemized receipts and justifications for each expense.
Reconciliation: Outline the process for reconciling credit card statements with expense reports, ensuring accuracy and identifying any discrepancies.
Reporting Requirements: Specify any additional reporting requirements, such as monthly or quarterly summaries of credit card usage.
Security and Fraud Prevention
Card Security: Emphasize the importance of safeguarding credit card information, including proper storage, password protection, and reporting lost or stolen cards immediately.
Fraudulent Charges: Outline procedures for reporting and resolving fraudulent charges, including steps to protect the company’s financial interests.
Password Management: Require cardholders to use strong, unique passwords for online access to their credit card accounts.
Regular Reviews: Conduct regular reviews of credit card activity to identify potential fraud or unauthorized use.
Termination and Return of Card
Termination of Employment: Specify the procedures for returning a company credit card upon termination of employment or change of position.
Unauthorized Use: Outline consequences for unauthorized or fraudulent use of a company credit card, including disciplinary action or legal proceedings.
Card Return Policy: Establish a clear policy for returning the physical credit card and any associated materials.
Additional Considerations
Travel Policies: Incorporate relevant travel policies, such as per diem rates, travel authorization procedures, and preferred travel vendors.
Tax Implications: Address any tax implications related to company credit card usage, including expense reporting and reimbursement requirements.
Employee Education: Provide ongoing training and education to employees on proper credit card usage, fraud prevention, and compliance with company policies.
Policy Updates: Establish a process for reviewing and updating the Company Credit Card Policy Template to ensure it remains current and effective.
By implementing a comprehensive Company Credit Card Policy Template, organizations can promote responsible financial practices, protect their assets, and maintain a positive corporate image.
