Company Credit Card Policy Template

Why is a credit card policy important?

A credit card policy is crucial as it establishes clear guidelines for the responsible use of company funds, ensuring transparency and accountability. It helps prevent misuse, fraud, and unauthorized spending by outlining permissible expenses, spending limits, and reporting procedures.

A well-defined policy also promotes efficiency in financial management, enhances compliance with regulatory requirements, and protects the company's financial interests. Additionally, it fosters a culture of fiscal discipline and supports effective monitoring and auditing practices.

What should be included in a credit card policy?

A comprehensive credit card policy should include the following elements:

• Eligibility criteria: Clearly define who is eligible for a company credit card and under what circumstances. This could include job title, seniority level, or specific job duties that require frequent travel or expenditure.
• Card usage guidelines: Specify what purchases are allowed with the corporate card and what restrictions apply. For example, prohibit using the card for personal expenses or cash withdrawals.
• Spending limits: Set spending limits for different categories such as travel, entertainment, and office supplies. This helps control expenses and prevents overspending.
• Approval process: Outline the procedure for obtaining approval before purchasing with the company credit card. This could include pre-approval from a supervisor or submitting receipts after the transaction.
• Documentation requirements: Clearly state what documents, such as receipts or invoices, must be provided to support each transaction. This ensures transparency and accountability for all expenses.
• Consequences of policy violations: Specify the consequences employees may face if they violate the credit card policy. This could range from a warning to revoking their access to the corporate card.

How to implement a credit card policy

To implement a credit card policy, 

• Develop and approve the policy with stakeholder input. 
• Communicate it to employees and conduct training sessions for those receiving cards. Issue cards and require signed agreements. 
• Set up an expense reporting system and enforce compliance through regular audits. 
• Address violations promptly and seek feedback for continuous improvement. 
• Review and update the policy periodically to ensure it meets business needs and complies with regulations.

Company Credit Card Policy Template

Please customize this template to meet your organization’s needs. 

[Your Company Name] Company Credit Card Policy

Purpose:

This policy outlines the responsibilities and guidelines for using company credit cards to ensure responsible and appropriate use for business expenses.

Scope:

This policy applies to all employees issued a company credit card.

Policy:

Eligibility:

• Company credit cards will be issued to employees who require them for business-related expenses.
• Employees must complete a credit card agreement and acknowledge understanding of this policy before receiving a company credit card.

Authorized Use:

• Company credit cards are only for legitimate business expenses, such as travel, accommodation, meals, and office supplies.
• Personal use of company credit cards is strictly prohibited.

Card Security:

• Employees must take appropriate measures to safeguard the company's credit card and prevent unauthorized use.
• Lost or stolen cards must be reported immediately to the credit card issuer and [Finance Department/Manager Name].

Expense Reporting:

• Employees must submit itemized receipts for all transactions made with the company credit card.
• Expense reports must be submitted within [specific time frame, e.g., 30 days] of the transaction date and include each expense's business purpose.
• Failure to provide proper documentation may result in the suspension or revocation of credit card privileges.

Spending Limits:

• Each company credit card will have a spending limit based on the employee’s role and business needs.
• Employees must stay within the credit limit assigned to their card.

Prohibited Expenses:

• The following expenses are not allowed on company credit cards:
  • Personal purchases
  • Cash advances
  • Alcoholic beverages (unless part of a business meal and within reasonable limits)
  • Non-business-related entertainment
  • Any expense not directly related to company business

Cardholder Responsibilities:

• Employees are responsible for reviewing their monthly credit card statements for accuracy.
• Any discrepancies or unauthorized charges must be reported immediately to [Finance Department/Manager Name].
• Employees must return the company credit card upon termination of employment or when it is no longer required for their role.

Compliance and Auditing:

• The company reserves the right to audit credit card statements and receipts to ensure compliance with this policy.
• Misuse of company credit cards may result in disciplinary action, including termination of employment.

Enforcement:

• Violations of this policy may result in disciplinary action, including termination of employment.
• The severity of the disciplinary action will depend on the nature and frequency of the violation.

Acknowledgment

By signing below, I acknowledge that I have read, understood, and agree to comply with the [Your Company Name] Company Credit Card Policy.

Employee Name: [Employee Name]

Signature: _______________________

Date: _____________