How to create a corporate credit card policy for employees

A corporate credit card policy is a comprehensive set of rules and guidelines that control the use of a corporate credit card. By detailing exactly how employees can use cards to spend, which expenses are authorized, and how to manage and report spending, this set of rules ensures financial control and accountability. It can also help prevent unauthorized expenses and make expense management processes a lot easier to carry out — promoting transparency and enabling employees to adhere to regulations. Basically, a well-crafted company credit card policy serves as a roadmap for responsible credit card use and spend management, protecting your company's bottom line.

Creating a corporate credit card policy is like assembling a puzzle — where each piece plays a key role in creating the full picture of financial responsibility. These eight essential elements are the cornerstone pieces that will help you build a policy that's clear, fair, and aligned with your company's goals.

1. Purpose and scope of the policy

The first part of a corporate credit card policy should clearly define the policy’s purpose. You’ll want to make sure this section outlines why the policy exists and to whom it applies, setting the stage for the detailed guidelines that follow. Typically you can include an objective statement that explains why the policy is necessary, a list of the benefits that the policy will bring, definitions for terms (such as “cardholder,” “expenses,” “misuse,” and more), and an overview of how compliance will be monitored and enforced.

2. Employee eligibility

Next, specify criteria for how employees will be eligible to receive a corporate card. This may include factors like job role, seniority, or specific business needs like travel and client management, ensuring that only authorized individuals have access to the cards.

3. Cardholder responsibilities and obligations

In this section, you can outline the expectations for employees who use company credit cards. This can include an explanation of proper card usage, what it means to spend responsibly, how to protect card credentials, and how to report lost or stolen cards. You can also share how to complete timely and accurate expense reporting. With some platforms like Brex, spending is tracked in real time, and you can easily filter expenses by things like amount, department, vendor, GL account, and more to export automated expense reports.

4. Spending limits and card controls

Include information on how spending limits will be set, such as by individual cardholder, department, and expense category. You can also give an overview of potential controls, such as merchant and category restrictions, per diem rules, automations that flag high-risk activity, and options to create one-time virtual cards.

5. Acceptable expenses and prohibited purchases

To prevent any confusion or gray areas around acceptable spend use cases, it’s a good idea to clearly outline which business expenses are permitted for credit card use and name any prohibited purchases. This helps ensure that cards are used only for necessary purchases. For example, you can have your policy prohibit card spend on gambling expenses or with specific vendors. It can save a lot of back-and-forth between employees and the finance team, and helps companies avoid “clawbacks,” whereby an employee must repay an unauthorized corporate card expense.

6. Expense reporting and reimbursement process

For this part of your policy, it’s helpful to clarify what type of documents are required for expenses and reporting, such as receipts and memos. By setting clear document requirements and deadlines for when employees need to submit expenses and documents, you can ensure timely processing and reimbursement, leading to a more organized reporting system. Brex allows you to set up notifications to remind employees when they need to upload receipts, although many receipts are auto-generated.

7. Procedures for card issuance, replacement, and cancellation

Detail the process for issuing new credit cards, requesting replacements, and canceling cards. Make sure that employees will know the steps to follow and who to involve in these procedures to manage their cards effectively. With Brex, it’s easy for employees to request spend limits as well as a virtual card and physical card. That way, employees can submit spend request and your policy will be auto applied. Brex can also even connect to your HRIS so that a card can be auto-created when someone joins and auto-canceled when they leave, and you’ll be able to manage their spend limits and controls proactively without worrying about misuse.

8. Consequences of policy violations and disciplinary actions

Outline the potential consequences for violating the corporate credit card policy, including possible disciplinary actions. Emphasize why employees should adhere to the policy and the importance of maintaining responsible card usage and safeguarding company resources. To help protect you further, Brex has an enterprise-grade suite of security features, including fraud protection, in place.

The best corporate credit card policies are those that balance control with flexibility and compliance with practicality. These best practices will show you how to strike that balance, creating a policy that protects your company's interests while empowering your employees to do their jobs efficiently.

Conduct a comprehensive analysis of company spending patterns

Analyzing and documenting exactly how your company spends will help you create the right kind of credit card policies for employees. Set aside time to analyze typical expense categories and spending behaviors so that you can tailor the policy to your company’s specific needs. One way to do this is by using Brex, where you’ll see real-time spending as it happens, and you can run smart filters and detailed reports for any time frame.

Encourage a collaborative approach

Many areas of the business may spend differently. For example, the sales team may need to travel much more frequently than your marketing team. So it’s important to communicate with stakeholders from all departments to ensure the policy aligns with spend needs across teams. Collaboration between finance and business unit leaders can help create a balanced and practical policy.

Incorporate best practices from industry standards and regulations

To strengthen your company’s compliance even further, integrate industry best practices and recommendations from organizations like the National Association of Travel Managers (NATM) or the Global Business Travel Association (GBTA).

Tailor your policy to company needs and goals

Consider customizing your policy based on your company's size, structure, growth stage, and spending habits. For instance, you can decide how much information you might want to include on budgets, spend limits, how approval chains will work, and integrations that employees can use — like Slack notifications for all employees or accounting automation for the finance team. Focus on aspects most relevant to your operations to create a policy that’s both practical and effective.

Provide clear and concise guidelines for employees

A corporate card policy is most effective when employees can easily understand it, so it’s critical to clearly communicate your guidelines. With Brex, employees can access their company policy in an easy-to-view format with a few quick clicks or taps in their dashboard or mobile app. You’ll also get onboarding and implementation assistance, plus 24/7 live support for any questions after the onboarding phase, to ensure every employee is knowledgeable about proper card usage and expense reporting procedures.

Regularly review and update

Lastly, regularly review and update your policy to reflect changes in regulations, company needs, spending patterns, or other market changes. By keeping an up-to-date policy, you’ll reinforce responsible and controlled corporate credit card use.

Brex, a leading provider of corporate credit card programs, elevates policy enforcement through a comprehensive suite of features designed to enhance control and efficiency. As a pioneer in the fintech space, Brex has reimagined how businesses manage their expenses, offering solutions that go far beyond traditional corporate cards.

At its core, Brex offers customizable spending controls and limits that align precisely with your policy guidelines, enabling proactive spend management rather than reactive corrections. This is complemented by sophisticated AI-driven automations that handle expense categorization and reporting, significantly reducing manual workload and potential errors.

A standout feature of Brex is its real-time expense tracking capability. This provides unprecedented visibility into company spending, allowing for immediate policy compliance checks and swift resolution of any discrepancies. Brex also revolutionizes the often cumbersome expense reporting process. Through automated expense reporting and intelligent receipt management — including upload reminders and auto-generated receipts — Brex significantly simplifies documentation requirements.

Furthermore, Brex seamlessly integrates with other essential business tools, such as Slack for notifications and various accounting software for cohesive financial management. The platform also prioritizes security, offering robust, enterprise-grade protection against fraud. Perhaps most importantly, Brex ensures that employees have easy access to company policy directly within their dashboard or mobile app, promoting consistent adherence to guidelines. By combining these powerful elements, Brex transforms corporate credit card policy management into an efficient, user-friendly process that enhances financial control while facilitating employee compliance.

A well-crafted corporate credit card policy isn't just a rulebook — it's the foundation for financial discipline and a catalyst for growth in your company. By incorporating the key elements we've discussed and embracing smart practices, you're not just keeping spending in check; you're fostering a culture where every dollar spent contributes to your business's future.

Remember, the best policies evolve with your company. Regular reviews and updates aren't just good housekeeping — they're how you keep your policy relevant in a fast-paced business world.

We understand that creating and implementing such a policy can feel daunting. That's where tools like Brex come into play. They're designed to turn your thoughtful guidelines into smooth, day-to-day operations. Why not see for yourself? Book a demo with Brex to explore how their features can simplify your expense management and bring your policy to life.

At its core, your corporate credit card policy is a powerful ally. When done right, it's not just about watching expenses — it's about empowering your team, enhancing transparency, and freeing up resources to focus on what truly matters: growing your business.

So, take this knowledge and put it into action. Create a policy that aligns with your company's values and supports its ambitions. Leverage the right tools, like Brex, to make implementation smooth and compliance effortless. You might just find that good financial governance isn't a necessary burden — it's the wind beneath your company's wings.

Ready to kickstart smarter spending and future proof your company’s financial health? The time to act is now. Your future self (and your bottom line) will thank you. Don't wait — sign up for a Brex corporate credit card today and take the first step towards transforming your expense management.