The guide to corporate credit card programs

Managing business expenses can be complex—not to mention time-consuming. If you’re tired of the hassle of expense management, a solid corporate credit card program could be the solution you’ve been looking for.

Corporate credit cards offer a centralized platform to track and control business spending with customizable controls and automated reporting.

In this article, we’ll explain how corporate credit cards work, their various and benefits, plus how to qualify so you can select the right program to optimize your business finances.

‍What is a corporate credit card?

A corporate credit card is a type of card given to employees for business-related purchases. Also known as company cards or commercial cards, their balance is paid off by the company, not the employees or business owners.

Corporate credit cards operate similarly to personal or small business credit cards in several respects. They allow you to make business-related purchases, and often offer rewards and perks. Your company is responsible for making timely payments on a corporate credit card, usually full monthly balance payments, and this activity will impact your business credit score.

A corporate card will display your company's name, and each employee's name as the authorized cardholder. The employee's signature will be placed on the back of the card, similar to how it would be signed on a personal credit card. Each employee card can be customized with unique spending limits and vendor controls.

Pros and cons of corporate credit cards

Corporate credit cards offer a range of benefits and drawbacks for businesses.

Pros:

• Higher credit limits than business credit cards
• You can issue physical and virtual cards to employees
• Come with expense management features
• Often no personal guarantee or credit check required
• Rewards and perks

Cons:

• Must be a registered LLC, C-corporation, or S-corporation to qualify for most corporate cards; not suited for sole proprietors or partnerships
• Must meet annual revenue or cash-on-hand requirements
• Balance must be paid in full each month

Do all employees get corporate cards?

Typically, not all employees receive corporate cards; whether one is issued depends on the company’s business credit card policy and the employee's role. Employees who travel frequently for business, incur regular expenses, or need to make purchases on behalf of the company are more likely to receive a corporate card. Senior management and executives often receive corporate cards due to their responsibilities and the nature of their expenses.

Companies also consider financial risk management, assessing who should have corporate cards based on position and necessity. Employees without corporate cards may use personal cards for business expenses and get reimbursed. It's essential to check your company's policy for specifics on corporate card issuance.

» Learn more: The best corporate credit cards

How do corporate card programs work?

Once the company is approved for a line of credit, it distributes corporate cards to authorized employees, which they in turn can use for business expenses like travel, client entertainment, and vendor or supplier payments.

Each transaction is recorded and tracked by the card issuer and the company's accounting system, and all charges made on the corporate cards are consolidated into a single monthly bill, sent to the company. For instance, with the Ramp Corporate Card, the business has real-time insights into company spend, as it integrates with your company’s Enterprise Resource Planning systems (ERPs) to streamline visibility.

Other potential features include more advanced spend management functions (such as setting spending limits and auto-approving transactions) and the chance to earn cashback or points and miles.

Who offers corporate credit cards?

There are two main players when it comes to corporate credit cards: traditional banks and innovative software providers. Here’s an overview of each type of corporate card.

From traditional banks, like American Express or Chase

Corporate cards offered by traditional banks are generally tailored for larger corporations with substantial annual revenue. These cards often come with a set of stringent requirements, including a strong credit history, a high credit score, and a certain annual revenue—often in the millions. These standards are in place to reduce risk for banks, since corporate cards typically have higher credit limits. Traditional corporate cards also usually come with high annual fees, and often charge foreign transaction fees for international usage.

Examples of bank-backed corporate cards include:

• American Express Corporate Card
• Chase Ink Business Preferred Card
• Citi Commercial Card
• Capital One’s Spark Cash Plus

From software providers

Corporate cards offered by software-oriented providers cater to a broader range of businesses, including startups and small to medium-sized enterprises (SMEs). These cards have more flexible eligibility criteria, making them accessible if your business has lower annual revenue or is still establishing a credit history.

Using a tech-forward approach, these providers offer features like real-time business expense tracking, integrations with accounting software, automated expense management and savings insights. It's a user-friendly experience that allows for a quick application process.

Examples of software-backed corporate cards include:

• Ramp corporate card
• Brex card

Benefits of corporate credit cards

Beyond consolidating all business expenses onto a centralized platform and into a single payment, the best corporate credit cards also offer the following benefits.

• Customizable spend controls. With some corporate cards, employers can set custom spending limits for their employees as part of their company credit card policy. These limits can be for each purchase, specific types of purchases, or overall spending. You can also choose the vendors, categories, and locations where employee cards are accepted.
• Easier expense reporting. Corporate cards with preset spending limits mean that employees don’t have to use their personal cards for business purchases. This eliminates the expense approval and reimbursement process, saving hours of manual work for your finance team.
• Breezier tax season. Cards that come with software make things even easier come tax season since automatic expense tracking by category and automated reports ensure that all of your spending data is easily accessible.
• Rewards on spending. Some cards come with points-based rewards with bonus points in spending categories like travel, dining, or software. These rewards can be redeemed for gift cards, statement credit, or travel bookings. Other cards offer simple cashback rewards with no category restrictions, so every purchase earns a flat rate back in redeemable cash or statement credit.

Types of corporate cards for businesses

Business cards vs. corporate cards

While both business cards and business corporate credit cards are designed for work-related spending, they have distinct differences. Here’s a quick overview.

Let’s take a closer look at the differences between a corporate card and a business credit card.

Corporate cards (like the Ramp card) place liability on the company only, whereas business credit cards may hold either the individual business owner or the company responsible for the charges. Corporate cards are primarily issued to employees of organizations for covering business-related expenses such as travel, client meetings, and office supplies. These cards are designed to help organizations manage their finances with features like spending limits and integrations with accounting platforms.

Business credit cards, targeted towards SMEs and entrepreneurs, are used for similar purposes but have different eligibility criteria. Small business owners typically have to use their personal credit score to apply for a business credit card, and there may be no revenue requirements.

Unlike corporate cards, business credit cards have fewer expense management features. There may be spending controls, but they’re usually less customizable than with corporate cards. These types of cards are better suited to sole proprietors or small businesses with a small number of employees, whereas corporate cards are more efficient for managing company spending on a larger scale.

Understanding commercial debit cards

Commercial debit cards are distinct from credit cards and are connected to a company's bank account instead of a credit line. When employees use their commercial debit cards, payments are taken from the business bank account balance rather than a monthly credit limit. This means that there’s no interest or risk of credit card debt.

Like credit cards, corporate cards also have a deferred payment model. Corporate credit card balances typically must be paid in full each month, whereas credit cards allow for the option of a minimum payment with interest. Both types of cards are distinct from commercial debit cards which pull directly from funds in a business bank account rather than a revolving line of credit. Credit cards and debit cards alike may charge foreign transaction fees.

Other types of corporate credit cards

In addition to the corporate card types we’ve outlined above, there are a handful of other types of corporate cards that cater to specific business niches.

• Corporate travel cards: Corporate travel cards are a specific type of corporate credit card designed primarily to manage and streamline travel-related expenses for businesses.
• Corporate expense management cards: Corporate expense management cards are a type of corporate credit card designed to help businesses manage, control, and streamline a wide range of business expenses.
• Corporate prepaid cards: Corporate prepaid cards are payment cards issued by businesses to employees or contractors that are preloaded with a specific amount of money. Unlike credit or debit cards, corporate prepaid cards are not linked to a bank account or a credit line.
• Corporate virtual cards: Corporate virtual cards are a type of payment card issued by businesses for managing and controlling expenses, but unlike physical cards, they exist only in digital form. It’s a one-time use card number that your company can use for one-off purchases.

How to get a corporate credit card

If you own a registered LLC, C-corp, or S-corp with annual revenue in the millions and total business expenses of at least $250,000 per year, your company might qualify for a corporate credit card.

While small businesses and sole proprietorships can get a small business credit card, corporate credit cards are designed for more established companies.

A corporate credit card issuer will typically ask for your business address and legal information, corporate formation information including your EIN number, average monthly spending, credentials linked to a business bank account, and your personal contact information as the business owner.

Your company's formation details can typically be found in your Articles of Incorporation, tax records, and loan requests. Your EIN may be listed on previous tax filings and loan applications. In case it isn't included in any of these documents, you can call the IRS for assistance.

To estimate your monthly business expenses, tally up the total amount spent on your business credit cards in the past month. If your spending varies greatly or follows a seasonal pattern, report the average of the last 3–6 months. Exclude any payments made through ACH, check, or wire transfers.

Discover Ramp's corporate card for modern finance

Learn more

How to implement a corporate credit card program

Pick your card

The first step in implementing a corporate credit card program is selecting which corporate credit card is best for your business. Different cards come with their own revenue and spending requirements as well as unique reward program structures. Some cards offer tiered rewards systems, where different types of expenses, such as travel, dining, or office supplies, earn varying rates of cashback or points. There are also cards that specialize in travel rewards, accumulating points for flights and hotel stays. Others offer a flat cashback rate on all purchases, providing a consistent return regardless of spending category.

Lean on corporate credit card policy best practices

Once you’ve decided on a card, the next step is to establish a corporate credit card policy. This policy should clearly outline which employees get corporate cards, permissible uses of the card, and spending limits. It's important to define what counts as a legitimate business expense and set guidelines for pre-approval of large or unusual expenditures.

The policy should also include procedures for reporting lost or stolen cards and disputing unauthorized charges. By setting clear rules and expectations, a card policy helps prevent unauthorized employee spending and lets employees know what they can expect.

Determine controls

Finally, you or your finance team should set up controls on employee card accounts. This involves configuring spending limits and restrictions based on each cardholder’s role and your company's budget. For example, you can set daily or monthly spending limits, limit transactions from certain types of vendors, or require approval for expenditures over a certain amount. Also, integrating the cards with your company’s accounting software can facilitate automated expense reporting, speeding up your month-end close.

Know the risks of misusing a corporate card

What happens if you don't pay your corporate credit card?

To use corporate cards, businesses are typically required to pay the full balance each month by enrolling in automatic payments deducted from their business bank account. That means there’s no possibility of carrying a balance on the card. Sometimes, you can also choose to automatically pay your balance once you're close to your spending limit. That way, you can make sure your cards never get declined.

Can a corporate card be used for personal use?

If you or an employee accidentally makes a personal charge on their corporate card, you can usually flag such an expense as accidental through your card provider’s platform. Once the expense has been flagged, you can initiate a repayment through the bank account that’s connected to your card. It may take a couple of business days to complete the process.

Using a corporate card for personal expenses on a regular basis is likely against the contract terms for your card. In that case, repeatedly using the card for non-business expenses could send a red flag to your card provider, prompting them to ask about your card use. Going against the terms of your cardholder agreement could result in a fine or having to close the account.

Consider Ramp’s modern corporate cards

Don't settle for business credit cards that require a personal guarantee or legacy corporate cards that lack the most basic spend management features. Instead, choose one of the best credit cards for corporations: Ramp.

Ramp is an all-in-one corporate card and expense management platform designed to simplify your company’s financial operations. By providing easy-to-use cards, spend limits, approval flows, vendor payments, and more, Ramp creates a seamless way to manage expenses and optimize savings.

To qualify for Ramp, all you need is:

• A registered LLC or corporation in the United States
• An EIN number
• $25,000 or more in a U.S. business bank account—or, commerce businesses may be eligible for our sales-based underwriting
• Personal contact details as the business owner