Company Credit Card Policy and Procedures Template

BACKGROUND

A credit card policy is a set of implementing rules of the Company concerning the use of the corporate card issued to its employees. The Company ensures this Policy to protect itself from unwanted and inappropriate charges or unofficial business transactions that may directly or indirectly affect the Company’s financial position.

PURPOSE

The purpose of this Policy is to define the set of guidelines and limitations of the employee when it comes to the terms and conditions of the corporate card issued to the designated employee. This helps the employee cardholder understand the perks, risks, and proper management of the said corporate card.

DEFINITION OF TERMS

1. Company Credit Card or Corporate Card

The type of card usually issued to the Company for their employees, primarily those working in positions within management.

2. Cardholder

Refers to the designated employee to whom the corporate card is issued.

3.Credit limit

Refers to the maximum amount the employee can charge using the company credit card. In this case, the employee cardholder is entitled to a total of $10,000.

4.Rebates and Points

Refers to the rewards the cardholder can benefit from using the credit card. It is solely dependent on the point system, promos, or rebates system of the card issuer.

5. Interest rates

Refers to the amount it costs to borrow from the credit card company within a certain period. With this Policy, the interest rate is only 4% monthly if not paid in full. However, the Company ensures that the employee cardholder will keep a good credit record.

6. Official business transactions

Refers to the financial transaction between two or more parties that involves a change of goods, money, or services strictly related and in connection with the business.

7.Minimum and annual dues

Refers to the amount that a cardholder should pay after the billing period. Annual dues refer to the cardholder’s membership fees. These include purchases made within the billing period, possibly including interest charges if the previous balance hasn’t been fully paid. With this Policy, the employee cardholder must submit their statement of account every 7th of the month to the collection department for further processing. The employee must also submit all proof of transactions for proper documentation, such as official receipts, venue reservation confirmation, accommodation invoices, toll & gas receipts, hospital billings, and other related expenditures.

8.Finance charges

Refers to the charges incurred for borrowing money through a credit card.

9.Overlimit fees

Refers to the penalty charges the cardholder acquires if they breach the credit limit. It is always a good idea to keep your credit card balance as low as possible. It is advised that every cardholder should use only 30% of their credit limit.

10. Credit score

Refers to the rating that tells creditors how worthy you are as a creditor or, in other terms, your grade as a borrower. This rate changes depending on how responsible you are in paying all your monthly and annual dues. Generally, it ranges from 300-800, in which the higher the score, the better the lender views you as a borrower.

EMPLOYEE RESPONSIBILITIES

As the designated corporate card holder, it is expected to abide by the set of rules specified below as implemented by the Company:

1. Always ensure that approval has been granted first before charging any purchases, subscriptions, and billing to the corporate credit card.

2. The employee must give knowledge of the anticipated charges to their supervisor.

3. Arrangements and preparations should be made 1-2 months in advance for any official business travel to avoid rescheduling, rebooking, or cancellation of the flight schedule so charges made to the credit card are officially and orderly charged. An exception would be made for emergencies that may cause the traveler to cancel the flights.

4. For team meals, the team should prepare a proposal including the details of the gathering, proof of transactions such as restaurant reservations, food receipts, and the list of all employees present at the event.

5. The employee should submit their statement of account to the collection department every 7th day of the month for financial transactions documentation and accounting purposes, along with the following proof of transaction such as official receipts, venue reservation confirmation, accommodation invoices, toll & gas receipts, hospital billings, and other related expenditures.

6. The employee cardholder should remember that the Company owns the corporate card and should be used only for business-related activities and never for personal use.

7. Should the corporate credit card be used for personal purchases, the employee cardholder will submit an expense report stating which purchases should be tagged as personal charges. These expenses will be deducted from the employee’s payroll.

8. Medical expenses can be charged through a corporate credit card. If the employee happens to purchase any medical expenses with the card, the employee cardholder will submit an expense report and tag the charge as medical reimbursement.

9. The employee cardholder is prohibited from having or being subject to any supplementary credit card.

10. The employee is required to report lost cards immediately, within 24 hours, to properly lock and block the account should there be any loss, stolen, or compromised card. The employee should contact the card issuer, details provided below, and then submit a written incident report to the manager to be forwarded to the finance department for further processing.

Card Issuer Contact Details

Hotline 1:(contact number)

Hotline 2: (contact number)

Hotline 3: (contact number)

Email:(bank email concerning cards)

Failure to comply with the guidelines and rules stated above will subject the employee to the following:

1. Investigation

2. Disciplinary actions

3. A one-time payment for the equivalent compensation should there be any damages and reputational risk involved

4. Termination of employment contract along with all the charges made under the cardholder’s name