Company Credit Card Policy Template

What is a Credit Card Policy?

A company credit card policy outlines the guidelines for the responsible use of corporate credit cards issued to employees. It ensures that company funds are used appropriately, transactions are properly documented, and financial risks are minimized. It also clarifies employee responsibilities, expense reporting procedures, and the consequences of misuse.

A credit card policy applies to all employees who have been issued a company credit card and governs their use for business-related expenses.

As is the case with all policies, it should be shared openly with employees, stored in a centrally-accessible place for repeated use, and be included in trainings or the employee handbook.

Purpose of the Credit Card Policy

The purpose of this policy is to:

• Ensure employees use company funds responsibly and in compliance with company guidelines.
• Reduce the risk of fraud, unauthorized spending, and financial loss.
• Streamline the expense reporting process for accountability and transparency.
• Establish clear expectations regarding company credit card usage.
• Protect the company’s financial resources while allowing employees to conduct business efficiently.

What the Credit Card Policy Should Include

A comprehensive company credit card policy should cover:

• Eligibility and Issuance: Who qualifies for a company credit card and the process for obtaining one.
• Permissible Uses: The types of business expenses allowed, such as travel, office supplies, and client meals.
• Prohibited Uses: Personal purchases, cash advances, and unauthorized expenditures.
• Credit Limits and Spending Controls: Maximum spending thresholds and any category restrictions.
• Expense Reporting and Documentation: Requirements for submitting receipts, reconciliation procedures, and deadlines.
• Security and Cardholder Responsibilities: Guidelines for protecting the card from fraud or theft.
• Lost or Stolen Cards: Reporting procedures and company response to loss or theft.
• Consequences of Misuse: Disciplinary actions for unauthorized transactions or non-compliance.
• Card Cancellation and Return: Process for returning the card upon termination or reassignment.

Sample Company Credit Card Policy

Disclaimer: This sample policy is for informational purposes only and does not constitute legal advice. It is a generic template that may not suit your specific circumstances, and should therefore be customized to fit your company’s specific needs, culture, and policies. When adopting or revising a credit card policy, consult legal and compliance counsel to ensure compliance with all applicable labor laws and regulations.

1. Policy Overview

[Company Name] provides company credit cards to eligible employees to facilitate business-related purchases and expenses. This policy sets forth the terms and conditions governing the use of company-issued credit cards, ensuring that all transactions align with company policies, budgetary controls, and ethical financial practices. Employees are expected to comply with these guidelines at all times, as failure to do so may result in disciplinary action.

2. Eligibility & Issuance

• A company credit card may be issued to employees whose job responsibilities require them to make frequent business purchases or incur travel expenses on behalf of the company.
• Eligibility is determined by department heads in consultation with the finance team. Typically, employees in sales, management, procurement, and operations may be issued a card.
• Employees must complete a company credit card application and sign an acknowledgment form confirming their understanding of this policy before receiving the card.
• The company reserves the right to revoke or reassign credit cards based on role changes, misuse, or evolving business needs.

3. Permissible Uses

Employees may use the company credit card strictly for authorized business expenses, which include but are not limited to:

• Travel Expenses: Airfare, hotel accommodations, rental cars, fuel for business-related travel, taxis, public transportation, and meals incurred during business trips.
• Client Entertainment: Meals, hospitality, and entertainment expenses that align with the company's business development and client relationship-building objectives. These expenses must comply with internal budget limits and industry regulations.
• Office Supplies and Equipment: Necessary purchases for conducting company operations, including stationery, software, or minor equipment, if pre-approved.
• Event Registrations and Conferences: Fees for industry events, seminars, and training sessions that contribute to professional development or business growth.
• Pre-approved Business Subscriptions and Memberships: Professional association fees, software subscriptions, and research materials needed for work purposes.

All expenses must be reasonable, appropriate, and in line with the company’s financial policies. Employees should seek pre-approval for any purchases that may be considered outside of routine business spending.

4. Prohibited Uses

The following transactions are strictly prohibited and may result in disciplinary action, including the suspension of credit card privileges:

• Personal Purchases: The company credit card must never be used for personal expenses, even if the employee intends to reimburse the company.
• Cash Advances and ATM Withdrawals: Employees may not use company credit cards to withdraw cash or obtain cash equivalents, such as money orders or traveler’s checks.
• Unauthorized Travel Expenses: Any travel costs that are not pre-approved by management or do not align with the company’s travel policy.
• Luxury or Excessive Purchases: Any purchase deemed extravagant or unreasonable, such as first-class airfare (unless explicitly approved), high-end dining, or personal luxury items.
• Recurring Personal Subscriptions: Streaming services, gym memberships, or any other non-business-related subscription services.
• Alcohol, Tobacco, or Controlled Substances: Unless expressly permitted for client entertainment within company guidelines, purchases of alcohol, tobacco, or any illegal substances are strictly prohibited.
• Splitting Transactions to Circumvent Spending Limits: Employees may not divide a single purchase into multiple transactions to avoid exceeding assigned credit limits.

5. Credit Limits and Spending Controls

• Each company-issued credit card is subject to a predetermined spending limit, which is based on the employee’s role, job function, and company budget constraints.
• The company reserves the right to set specific category restrictions to prevent misuse. Certain types of transactions may be blocked automatically.
• Employees should not request vendors to override spending limits or restrictions. If an increase in the credit limit is necessary, employees must submit a request to the finance team, providing a justification for the adjustment.
• The finance team regularly reviews card usage and spending patterns to ensure compliance with budgetary guidelines.

6. Expense Reporting & Documentation

• Employees are required to submit an expense report for all transactions made using the company credit card within 60 days of incurring the expense.
• Each transaction must be supported by an itemized receipt. Handwritten or incomplete receipts may not be accepted.
• Monthly statements must be reviewed, reconciled, and approved by the employee’s manager before submission to the finance department.
• Any disputed or incorrect charges must be reported immediately. Employees should attempt to resolve incorrect charges with the vendor before escalating the issue to the finance team.
• Failure to provide timely and accurate documentation may result in suspension of credit card privileges.

7. Security and Cardholder Responsibilities

• Employees must take all reasonable precautions to protect their company credit card from loss, theft, or fraud.
• Credit card details, such as the card number, expiration date, and CVV, should never be shared with unauthorized individuals.
• Employees should regularly monitor their credit card activity and immediately report any suspicious transactions.
• Cards should not be stored in unsafe locations or left unattended.

8. Lost or Stolen Cards

• If a company credit card is lost or stolen, the employee must immediately notify both the issuing bank and the company’s finance department.
• The finance department will determine whether a replacement card is necessary and conduct an investigation into any unauthorized transactions.
• Employees may be held responsible for failing to report a lost or stolen card in a timely manner.

9. Consequences of Misuse

Violations of this policy may result in:

• Temporary or permanent revocation of company credit card privileges.
• Requirement to reimburse unauthorized or unapproved charges.
• Disciplinary action, up to and including termination of employment.
• Legal action in cases of fraud or intentional misuse of company funds.

10. Card Cancellation and Return

• Employees must return their company credit card to the finance department upon resignation, termination, or reassignment to a position that no longer requires a card.
• The finance team will ensure that the card is canceled, and any outstanding balances are settled.

This extended policy ensures clear accountability while allowing employees to make business purchases efficiently. Organizations should customize this template to align with their internal financial policies and regulatory requirements.

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