As an important part of a company’s travel policy, a well-defined card policy helps ensure that business travel runs smoothly and consistently. Beate Svendsen believes that every organisation using corporate cards should have one.
“A clear document describing the rules for using corporate cards and for business expenses saves time and minimises the risk of misunderstandings and the misuse of cards. However, it should be kept short and specific so that everyone can follow it,” she says.
"A strong card policy can only be effective when corporate cards are issued"
A strong card policy can only be effective when corporate cards are issued with corporate liability, meaning that the company is ultimately liable for payment.
"This allows the cards to work seamlessly with digital solutions that provide real-time visibility of spending, enable purchasing limits to be set and allow cards to be cancelled when needed," says Beate Svendsen.
Corporate cards can also be integrated with travel and expense management systems, making it easier to digitise receipts and automate expense reporting. Once the card programme is in place, the next step is to define how the cards should be used.
To help you create a policy that supports both your travel programme and your employees, here are four key questions your card policy should answer:
What type of corporate card will your company use?
State the card that will be used, the application criteria and describe how to apply for the card. Also tell employees which app should be used with the card.
How should the corporate card generally be used?
Explain the types of purchases/expenses that are authorised and give examples. Tell employees about the rules for entertainment expenses and what the cardholder needs to do if they accidentally use the card for personal expenditure. Inform them of the cardholder’s responsibility for their card and for complying with the card issuer’s terms and conditions.
If the card is lost or stolen, there should be a card cancellation procedure that the cardholder can easily follow. The policy should also be clear about the consequences if employees do not follow the guidelines for card use.
How should the corporate card be used on business trips?
Explain which portals and apps the card should be used in as a means of payment, e.g. travel agencies, car hire companies, etc. The policy should also set out the rules that apply to gratuities and cash payments, or if a receipt cannot be given after an authorised expenditure.
How will invoicing and expense reporting be organised?
Will invoices be sent directly to employees or to the company? Clear information should be given about who is responsible for ensuring that invoices are paid on time. It is also important to explain which systems/tools should be used to report expenses. Describe, step by step, how expenses should be reported, and what kind of receipts and invoices are required.
About the expert
With a long career at AirPlus and SEB Kort, Beate Svendsen has built extensive expertise in business travel and payment solutions, helping organisations streamline payment processes, improve control and create value through digital solutions. She has also served for many years as a board member of the Norwegian Business Travel Association (NBTA) and is an active contributor to the Nordic business travel community, including through the annual Nordic Business Travel Summit (NBTS).
