The lowdown.
What is a corporate credit card?
Corporate credit cards are frequently utilised by large businesses and organisations to handle payments, manage cash flow, and allow employees to cover expenses. They are typically available only to companies with a high turnover (e.g., over $10 million) or those needing many employee cards.
For smaller companies, a business credit card facility is usually sufficient.
Often, corporate credit cards are actually charge cards. If you have a corporate card from American Express or Diners Club, it is almost certainly a charge card.
Which providers offer corporate credit cards in Australia?
The main providers of corporate credit cards in Australia are:
While some of these providers advertise specific corporate cards with listed features, rates, and fees for corporate clients, most will offer customised programs with personalised rates, terms, and benefits.
As of 31 January 2024, Diners Club no longer offers charge cards in Australia.
Expert opinion
The benefits of charge cards for corporate companies
David Boyd, co-founder of Credit Card Compare and credit card expert says there are some significant benefits for large companies that use charge cards as their corporate cards.
Unlike a credit card, a charge card is not a liability on your balance sheet; it’s an expense. If you are tying up your balance sheet with credit card liabilities, it reduces your working capital.
For a large corporate with 250 cards issued to staff, that could be tens or hundreds of millions of dollars in a revolving credit facility. A charge card doesn’t do that. It's a much more efficient utilisation of your balance sheet.
Be aware of corporate credit card fees
For corporate clients with numerous cards issued to staff, it's especially necessary to pay attention to fees applied at the individual card level, such as:
- Annual card fee (per card)
- Rewards program fee
- Additional cardholder fee for issuing new cards
- Replacement card fee
Plus, there are the usual credit card fees that will typically apply to corporate cards, including:
- Foreign transaction fees (FX fees)
- Cash advance fees
- Late payment fees
Expert opinion
How corporate cards can help with cashflow and optimising your business
Ryan Edwards-Pritchard, CEO of Cape, explains the key benefits of using a credit card and the different features to help streamline finances and cashflow.
Running a business is all about making smart, efficient choices. Corporate credit cards are a game-changer for cash flow management, automating your accounting and for keeping your expenses in check. With the flexibility of multiple cards for your team, you’ve got real-time visibility and control over spending.
Set limits, capture receipts, track transactions, and optimize cash flow, all while saving on unnecessary fees with free FX spending. It’s about putting you in the driver’s seat to scale efficiently and keep your finances streamlined.
