Company Credit Card Policy Template

Purpose

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 policy ensures responsible financial practices, prevents fraud, and maintains a positive company image.

Key Components

1. Card Issuance

Eligibility: Clearly define the criteria for employees who are eligible to receive a company credit card. Consider factors such as job position, tenure, and performance.

Card Types: Specify the different types of credit cards available (e.g., corporate, travel, purchasing) and their corresponding limits and usage restrictions.

Card Activation: Outline the procedures for activating new credit cards, including necessary documentation and approval processes.

2. Authorized Users

Delegation of Authority: Establish guidelines for delegating card usage authority to other employees, such as assistants or team members.

Secondary Cardholders: Determine whether secondary cardholders are allowed and specify their responsibilities and limitations.

3. Permissible Expenses

Business Expenses: Clearly list the types of expenses that are considered legitimate business expenditures, such as travel, meals, entertainment, and office supplies.

Prohibited Expenses: Outline expenses that are strictly prohibited, such as personal purchases, gambling, and excessive or unnecessary expenditures.

4. Expense Reporting

Timely Submission: Specify the deadline for submitting expense reports, typically within a specific timeframe after the expense is incurred.

Required Documentation: Indicate the necessary documentation to support expense claims, such as receipts, invoices, and travel itineraries.

Expense Report Format: Provide a template or guidelines for the format and content of expense reports to ensure consistency and accuracy.

5. Card Usage Limits and Restrictions

Spending Limits: Set daily, weekly, or monthly spending limits for each card type to prevent unauthorized or excessive spending.

Transaction Restrictions: Impose restrictions on certain types of transactions, such as cash withdrawals, gambling, or high-risk purchases.

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6. Fraud Prevention and Detection

Fraudulent Activity Reporting: Outline procedures for employees to report suspicious or fraudulent activity on their company credit cards.

Fraud Investigation: Describe the steps the company will take to investigate and resolve cases of fraud.

Fraud Prevention Measures: Implement measures to prevent fraud, such as requiring two-factor authentication, limiting online purchases, and regularly monitoring card activity.

7. Card Security

Card Safekeeping: Instruct employees on the proper storage and handling of their company credit cards to prevent loss or theft.

Password Management: Require employees to create strong and unique passwords for online access to their credit card accounts.

Phishing Awareness: Educate employees about phishing scams and how to identify and avoid them.

8. Card Termination

Termination Procedures: Outline the procedures for terminating a company credit card, including notification requirements and return of the card.

Outstanding Balances: Specify how outstanding balances will be handled upon card termination, such as payment arrangements or collection procedures.

9. Policy Violations

Consequences: Clearly state the consequences for violating the company credit card policy, including disciplinary actions, financial penalties, or legal repercussions.

Dispute Resolution: Provide a mechanism for employees to dispute charges or address policy violations.

10. Policy Review and Updates

Regular Review: Specify the frequency with which the company credit card policy will be reviewed and updated to ensure it remains current and effective.

Policy Distribution: Outline the procedures for distributing the policy to employees and ensuring their understanding and compliance.

By implementing a comprehensive Company Credit Card Policy Template, companies can establish clear guidelines for credit card usage, minimize financial risks, and maintain a positive corporate image.