A Guide To Choosing The Best Corporate Credit Cards
At the corporate scale, you aren’t usually dealing with pre-designed deals and packages. If you’re big enough to qualify for a corporate account, your business likely has complex and very specific needs. The arrangements you make with your issuing financial institution will probably be unique to your company.
As you can imagine, this makes it very difficult to definitively rank corporate cards. Two businesses may get a corporate card from the same bank and have significantly different terms on their card.
Since we can’t tell you which card is the best for your particular situation, we’ll look at the factors that you should keep in mind when you’re evaluating your corporate credit card offer.
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What Are Your Responsibilities?
Most corporate credit cards will require your company to meet some prerequisites to obtain and keep a card. These usually include:
- Earning over $4 million in revenue annually
- Opening a minimum number of cards on the corporate account
- Paying any applicable annual fees
You’ll want to evaluate the costs of the annual fee, which typically consists of a base fee and an additional per card fee. While these fees won’t break the bank for a company earning over $4 million, you don’t want to have to pay more than necessary for the perks you receive.
Who Is The Credit Card Provider?
Visa, Mastercard, and American Express all offer corporate credit cards.
As is the case with personal and small business cards, Visa and Mastercard don’t issue the cards directly, instead selling their services to banking institutions, which in turn issue you a corporate card. Some of the benefits offered by your card will be common to all Visa or Mastercard corporate cards. These include things like auto rental coverage and aspects of your customer service. Overall, the banking institution you choose will be a bigger factor for what services you receive than whether your card is serviced by Visa or Mastercard.
American Express, on the other hand, directly issues their cards. Amex corporate offerings will be more familiar to you if you’ve ever perused their personal and business credit cards. In fact, you’ll notice that their corporate cards are largely scaled-up versions of their personal and business credit cards — there’s a corporate Platinum Card, for example.
How Does The Auto Rental Collision Damage Waiver Work?
Commercial vehicle rental coverage is offered with most corporate cards. This is usually offered through the credit card company itself rather than the issuing bank.
These programs will usually cover collision and theft of the vehicle, but not necessarily any contents within the cars. There are restrictions on what types of vehicles are covered and under what circumstances. For example, Visa will cover SUVs, but only so long as they are road-safe.
You’ll also want to know how the coverage works both within the United States and internationally. Again using Visa as an example, your damage waiver will function as primary coverage when you’re out of the country and secondary while you’re within. Secondary insurance policies pick up fees and charges that your primary policy does not.
Look over the fine print of your policy, or better yet, have your accounting team do it so that you’ll be able to create guidelines for how your employees should use their coverage to rent vehicles.
How Is The Rewards Program Set Up?
Though they’re not as big of a selling point for corporate credit cards, rewards programs can still add value to your account by returning a percentage of your expenditures back to you as cash, statement credit, gift cards, flyer miles, or points you can spend through other reward programs.
To get the most out of your reward program, you’ll want to know what types of expenses your employees will be putting on their corporate cards. If they’re concentrated in a particular area — like travel expenses — you’ll want a reward card that reimburses those expenses at a high rate.
Do You Want To Make Individual Or Company Payments?
Because corporate cards are meant to be used by multiple employees, there are two different ways to set up your payment systems. You’ll want to be sure your bank offers the setup of your preference.
One configuration is to have the company directly pay the balance on all of the cards. In this case, you’ll probably want to design a policy to determine what types of expenses the cards can be used for.
The other is to have your employees each be responsible for their own cards and then submit expense reports so the company can reimburse them for qualifying expenses.
In both cases, you can work with your issuer to set spending limits.
While you can’t directly compare corporate cards the same way you can compare small business and personal cards, you can approach the negotiations with a firm sense of what features and services you want your issuer to offer. Since you’ll be setting policies for employee usage, you’ll want to be able to clearly define when the cards should or shouldn’t be used.