How to use your employer’s company credit card

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Published on May 28, 2024 | 5 min read

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Key takeaways

If your employer gives you a company credit card, you’ll want to make sure you understand your company’s use policy to avoid exceeding limits or making unauthorized purchases.
Save your receipts and any written purchase authorizations you receive from a supervisor, and submit expense reports promptly.
Keep a personal card with you as a backup — and if you do accidentally use a business card for a personal purchase, repay the charge and tell your employer immediately.

Your company has just issued you a credit card for job-related expenses. This can make daily life and business travel a lot more convenient. At the same time, it’s important to make sure you use the card in the way your employer intends.

That starts with understanding how corporate cards work, as well as your employer’s company card policy. If you work for a small business, you may be added as an authorized user on your employer’s business card, which works a bit differently. In that case, the card you’re given to use may function more like a personal credit card rather than corporate card.

Either way, you’ve been entrusted with a credit card connected to your employer’s business, and it’s important to use it responsibly. Here are some general guidelines to follow and actions to avoid when using your company’s credit card:

5 ways to use your company credit card responsibly

Using your company credit card the right way can show your employer that you can be trusted with it in the long run. To help you use your card responsibly, keep these tips in mind:

1. Know the credit card use policy

When you are first assigned a company card, your supervisor may walk you through the restrictions or provide you with a document outlining all the company’s rules. You might even be required to sign a statement confirming that you have read and understood these rules. Either way, make sure you familiarize yourself with your company’s credit card use policy regarding what can and can’t be charged to your credit card. You may be held accountable for any charges that are not authorized by the company.

Bankrate’s take: Some companies don’t have clear written policies about how to use a company credit card. When in doubt, ask your supervisor. You’re better off inquiring about the unwritten rules than being surprised that you’ve broken them later.

2. Understand your spending limits

Stay informed about the spending limits your company has for specific types of spending, such as booking hotel rooms, entertaining clients and covering meal costs while traveling. Some companies set spending limits on certain types of purchases made with their credit card company, and you may be held responsible for paying the difference if you overspend. Others don’t set such limits.

3. Save your receipts

Make sure you keep good records — even for minor purchases like a cup of coffee or a short Uber ride from your hotel. Your company will likely require you to submit receipts for these expenses. If you’re concerned about losing the receipts, take photos with your phone or use a free tool like CamScanner.

4. Have a backup card

When traveling for business, have your own credit card ready — preferably a card that earns rewards — for unexpected expenses that your company doesn’t cover. You don’t want your company credit card to be your only backup if you need to pay for something like a trip to the pharmacy for medication you forgot or for clothes to wear in case your luggage gets lost.

Similarly, you may need to make a business purchase using your personal credit card in certain situations and seek reimbursement for the purchase later.But make sure you’re following your company’s reimbursement policies in such cases.

Keeping a rewards credit card as your backup card is also a good way to maximize the rewards on your purchases while you’re away on business — especially if you’ll get reimbursed for a business-related expense at the same time.

5. Be prompt with expense reports

File your expense reports on time. It will be easier for your employer to stay on top of paying the card in a timely way if you provide the information the accounts payable team needs upfront. This can also help you stay in good standing when it comes to your company’s use policy and prevent discrepancies from piling up.

7 pitfalls to avoid when using your employer’s credit card

Having a company credit card can make your job a lot easier, but not if you’re consistently using it the wrong way. Some common pitfalls you should avoid when using your card include:

1. Starting to spend immediately

Don’t use the card until you know what the company’s rules regarding its usage. As stated previously, you’ll likely be walked through those rules by a supervisor or given a document outlining them. If you’re not given any documentation, it is advisable to request a copy of the rules so that you can refer back to them if you haven’t used the card in a while.

In addition to not using the card until you are familiar with your company’s use policy, you might have to wait because of accounting restrictions. Maybe your employer issued the card but requires you to hold off on using it until the beginning of next month, or maybe it’s only for use while on business trips. Paying attention to these details can help you avoid starting your company credit card journey on the wrong foot.

2. Making large unauthorized purchases

Avoid making large purchases without getting written approval from a supervisor, even if your company has no official policy on this matter. It’s always best to avoid surprising your employer with unexpected expenses, especially if the purchase comes close to maxing out your credit limit.

3. Exceeding the spending limit

Speaking of your spending limit, if you’re getting close and believe you may need to exceed the limit during a business trip, ask as soon as possible. Your company may be able to raise your spending limit without penalty or request that you charge some expenses to your personal card and submit them for reimbursement.

4. Using a company card for personal purchases

Never use your company card for personal expenses, unless it’s a real emergency. To avoid that scenario, keep an alternative payment card available for personal use. If an emergency arises and you must use it, notify your supervisor proactively, so there are no misunderstandings.

5. Keeping mistakes secret

Communicate with your employer about mistakes. Making personal purchases on a business credit card likely violates the terms and conditions of the card agreement, which can lead to serious consequences. If you accidentally use your business card, mistaking it for another card in your wallet, repay the charge immediately and notify your supervisor.

6. Using rewards points you earn

Never assume that the rewards points from your business card belong to you. Your company may have a policy in which the points belong to the company. Ask about the policy if you’re not sure.

7. Being lax about security

Even if it’s a corporate card, it’s your responsibility to report fraudulent charges to the card company and notify your employer. If you notice any unfamiliar charges, or if your card is lost or stolen, notify your company immediately. This way, they can take appropriate action to prevent future theft. Keep any business card as secure as you would keep your own personal card.

The bottom line

Corporate cards have perks and tools that can be valuable to any employee, saving you from the burden of having to put business purchases on your personal credit cards and maxing out your credit. However, it’s also a big responsibility, and you’ll want to make sure to use your card exactly as your company intends.