How are funds spent using a physical card?

On Ramp, physical card transactions are authorized in real time against your card's spending limits and merchant controls, appear in your dashboard within minutes, and automatically prompt employees to upload receipts and add memos.

How the transaction process works

When an employee swipes, inserts, or taps a physical card:

1. Authorization: The merchant's terminal sends the transaction details to the card network (Visa), which forwards the request to Ramp.
2. Verification: Ramp checks the card status, spending limits and fund availability, spending controls, and merchant restrictions.
3. Approval or decline: If the transaction passes all checks, Ramp approves it and the merchant completes the sale. If it violates a control (spending limit, blocked merchant, or restricted category), the transaction is declined immediately.
4. Settlement:The merchant submits the transaction for settlement, and funds are transferred from Ramp to the merchant's bank within 2–3 business days.

How Ramp physical cards enforce controls

Ramp applies spending rules at the point of sale, preventing out-of-policy transactions before they complete:

• Spending limits: Set daily, per-transaction, or monthly limits on each card.
• Merchant restrictions: Block specific merchant categories (such as alcohol, entertainment, or personal retail) or limit cards to approved vendors.
• Geographic controls: Restrict cards to domestic use or specific countries.

When a transaction violates a control, the card is declined at the terminal and the employee is notified immediately.

What happens after a transaction is approved

Once a transaction is authorized:

• Real-time visibility: The transaction appears in the Ramp dashboard within minutes, showing the merchant, amount, date, and cardholder.
• Receipt collection: Ramp sends an automated reminder to the employee to upload a receipt via mobile app, email, or text message.
• Memo requirement: Employees are prompted to add a business purpose or memo before the transaction can be submitted for approval.
• Automated categorization: Ramp uses AI to suggest the correct GL code based on the merchant and transaction details.
• Approval routing: Transactions route to managers or admins for review based on your approval workflows.

Settlement and accounting sync

After settlement completes:

• Ramp syncs the transaction, receipt, memo, and GL code to your ERP (QuickBooks, NetSuite, Sage Intacct, or Xero).
• The transaction is marked as reconciled and ready for month-end close.
• All documentation is stored with the transaction for audit purposes.

Best practices

• Set spending limits and merchant restrictions on each card to prevent out-of-policy purchases.
• Enable automated receipt reminders to ensure employees upload documentation immediately.
• Review real-time transaction feeds daily to catch anomalies early.
• Use approval workflows to route high-value or unusual transactions for manager review before they sync to your ERP.