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.
Expert opinion on corporate charge cards
CreditCardCompare.com.au’s co-founder and credit card expert, David Boyd, 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.
Who offers 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.
Fees charged on corporate credit cards
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 on corporate card benefits
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 & 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.
Benefits of a corporate credit card
- Rewards program: This allows your organisation to earn reward points on spending and access perks and exclusive offers. Some programs (e.g., Amex) let you convert points to various frequent flyer programs.
- Monitor spend and expense policy compliance: A quality corporate credit card program will allow your finance team to track spending at the individual card level and check compliance with company expense and travel policies.
- Card-level limits: Corporate cards usually allow the organisation to set individual limits on cards issued to employees. For instance, different levels of management may have different spending limits.
- Unauthorised use insurance: This safeguards organisations against misuse of their corporate credit cards and is sometimes included as a complimentary extra with corporate card programs (e.g., CommBank).
- Virtual cards: Physical corporate cards can be inconvenient and pose security risks, and may not always be needed depending on usage. Some corporate card programs (such as NAB and HSBC) allow for the instant approval of virtual cards to staff. This can be a card that exists only in a digital wallet or a unique account and card number generated for each transaction.
- Integration with finance software: Most corporate credit card programs offer integration with common financial software. Some providers handle this better than others. They also typically provide your organisation with access to reports featuring detailed breakdowns of spending and payments, along with forecasts to assist your finance team with planning.
- Travel insurance: Some corporate credit cards include travel insurance that covers various risks related to corporate travel. This generally applies only to travel paid for using the card. In the case of certain Amex corporate cards, the cover applies regardless of whether the card was used to book the travel.
- Lounge access: Premium corporate credit cards often provide access to airport lounges. The specific lounges available to you will depend on the card provider and the particular card you have.
- Business subscriptions and other perks: Corporate credit cards frequently include extras such as media subscriptions or early access to corporate event tickets.
- Dedicated support: As a corporate client, you usually have access to dedicated support from the card provider that isn't available to small business or personal customers.
