A business credit card guide for SMEs: fees, payment options, and expense management features

When managing company expenses, small and medium-sized enterprises (SMEs) often strive to keep spending in check without slowing down daily operations. But maintaining cost control with a smooth workflow isn’t always easy for businesses. 

This article offers a fresh perspective by comparing business credit cards offered by traditional banks with the corporate credit cards offered by the all-in-one financial platform Airwallex, breaking down fee structures, expense management tools, and credit limits. Discover how integrated expense management can empower SMEs to control costs while moving fast in a global market, and how to choose a business credit card that can streamline your operations and drive growth.

Why do traditional business credit cards fall short for modern businesses?

As globalisation and digitalisation reshape today’s business landscape, traditional business credit cards are struggling to meet the changing needs of Hong Kong SMEs, particularly those operating across borders. Many cards still pile on steep foreign exchange (FX) markups and extra fees that can reach up to 3% on international transactions. For businesses eager to grow beyond borders, these extra costs can be a significant obstacle.

Many businesses also face the burden of complicated reimbursement processes. Employees often have to cover expenses out of pocket and submit receipts manually. These workflows require significant time and manpower to verify and reconcile. Not only does this boost the risk of errors, but it also diverts valuable resources that could be better invested in business growth.

Key differences between business and personal credit cards

Business credit cards, issued in a company's name and linked directly to its business account, ensure all transactions are dedicated business spending. This separation from personal expenses promotes transparent financial records and is a crucial advantage for businesses of any size, as it streamlines operations by simplifying accounting and tax reporting.

Hidden costs of traditional business credit cards: FX markups, transaction fees, and admin overheads

The “actual cost” of traditional business credit cards is often much higher than it appears. One major factor that is frequently overlooked are FX markups. Banks usually add a charge of at least 3% on top of interbank FX rates. Take this scenario, when a Hong Kong business pays a US supplier US$10,000 (about HK$78,000), the FX cost for converting it into USD can be as high as US$300 (about HK$2,300).  

On top of that, traditional banks and financial institutions may charge extra transaction fees of 1-3% on each cross-border payment. These expenses add up to a considerable amount for SMEs over time. 

Administrative management costs are also often underestimated. Take the case of Bowtie, the virtual insurer in Hong Kong. It used to rely on local credit cards to pay for multiple USD-based SaaS tools and overseas services, resulting in high FX costs and international transaction fees. Since switching to Airwallex corporate credit cards, Bowtie now pays these costs directly in USD. By unlocking $0 international transaction fees and competitive rates, the company reduced cross-border payment costs by about 3-5%. It also sped up monthly reimbursements and account reconciliation for its team.

Calculate the total cost of fees and FX markups

The most important consideration factor when selecting a business credit card is the total cost. The following formula covers annual fees, extra charges on foreign transactions, and rebates. It can help you estimate your yearly total cost:

Total cost = Annual fee + [Expected overseas transaction amount x (transaction fee percentage + FX markup percentage)] - Cash rebate For businesses operating across borders, selecting a business credit card with no annual fee, no transaction fees, and low FX markups is a smart way to save on overseas spending. Taking Airwallex’s Corporate Cards as an example, it comes without annual fees or overseas transaction charges on HKD and USD. This helps companies avoid unnecessary currency conversion and maximise cost-efficiency.

Assess the efficiency in expense management and risk control

When choosing a credit card for your business, it’s important to look beyond payment capabilities and choose a solution that also elevates your expense management efficiency. A professional expense management platform lets you track real-time spending and balances for the entire company and individual employees. Advanced options even let you set flexible card controls, such as spending limits, payment rules for merchant categories, and usage periods for different cards. These features can help you nail budget allocation and risk control – all at once!

If you choose a solution that implements automatic Optical Character Recognition (OCR) technology and supports integration with leading accounting software like Xero and NetSuite, you can slash the manual workload for reconciliation and reimbursements, and free up your finance team to drive your business forward.

Consider payment currency options and administrative costs

If you run a cross-border business, global payment capabilities should be your top priority. With an Airwallex corporate credit card, you can pay directly in HKD or USD, bypassing forced currency conversions and minimising unnecessary FX costs. On top of that, your employees can directly spend in local currencies and enjoy 0% overseas transaction fees while on business trips.

You can also allocate credit limits to multiple employee cards and assign them to different team members, gaining precise control over every expense. Real-time tracking keeps you on top of every transaction, while one-click approvals make Expense Management simple and highly efficient.

Traditional banks vs modern expense management platforms 

To keep pace with modern business needs, companies require more than traditional solutions. Modern expense management platforms offer business credit cards that empower growth-focused companies with the transparent fee structure, global payment capabilities, and operational efficiency they need to succeed in today’s business world.

Limitations of traditional business credit cards

While business credit cards from traditional banks often offer local spending perks, such as airport lounge access and travel insurance, they fall short when it comes to supporting global business expansion. These cards usually come with multiple handling fees and require complex reimbursement procedures. Their lack of integration with modern cloud-based business tools also limits operational flexibility.

Airwallex corporate credit card: Boost cash flow and business continuity

If your forward-thinking SME is looking to succeed in a global marketplace, Airwallex corporate credit cards can help you get there. You can instantly issue virtual cards online to team members, allocate credit limits across multiple cards, and maintain real-time control over every expense. With an Airwallex corporate credit card, you can flexibly manage HKD or USD credit limits to keep operations running smoothly. On top of that, you can also earn cash rebates (available to selected customers) from your essential expenses, helping your business save more on everyday costs.

With Airwallex’s Expense Management, you gain instant visibility into every card expense while automated expense claims and reconciliation take care of the details – so your finance team can set manual work aside and focus on driving your business forward.

Get your corporate credit card up and running

Application processes and requirements of traditional business credit cards

Applying for a business credit card at a traditional bank usually involves submitting a long list of documents, including your business registration certificate, audited financial statements, and bank statements from the most recent two to three months. Traditional banks usually require company directors to appear in person at the branch to complete the process. These complex and time-consuming steps can‌ delay your access to essential working capital.

Applying with Airwallex: fully online, fast-track

With Airwallex, speed is your advantage in today’s fast-moving business world. You can skip the paperwork and lengthy approval waits by completing everything online. Your team can set up a Business Account, issue corporate credit cards, and start spending in minutes. 

One corporate card for receiving, spending, and managing expenses

By bringing together Corporate Cards, Global Accounts, and FX and Transfers on one integrated platform, Airwallex simplifies global finance for your business.

You can receive payments worldwide directly into your multi-currency account, then pay for overseas advertising, cloud services, and suppliers, using your HKD or USD credit limits. These help to avoid repeated conversions and unnecessary fees. Every transaction syncs with your account system, making daily financial management more efficient and reducing cash flow risk. 

Frequently asked questions about business credit cards

What is the difference between a business credit card and a corporate card?

Many refer to corporate cards as business credit cards – companies issue them under the company name, link them to business accounts, and provide them to employees for official expenses. Airwallex corporate credit cards set a new standard by giving startups and large enterprises the flexibility to choose either company cards or employee cards based on their needs. Businesses can cut administrative costs by managing all spending and expenses on a single platform with real-time visibility.

Does a company director’s personal credit record affect a corporate card application?

When assessing risk for corporate card applications, traditional banks often review a company director’s personal credit history, especially for SMEs. Yet, Airwallex uses a different approach. It bases decisions primarily on the business’s operations and financial health, so a director’s personal credit record does not affect the outcome.

How can I set spending limits for employees?

You can flexibly manage spending with Airwallex corporate credit cards – adjust spending limits, categories, and card validity periods for each card at any time. You can also tailor limits for different payment purposes, such as business lunches and software subscriptions, and instantly freeze or cancel cards to safeguard your company’s finances.

Disclaimer: This article was prepared in November 2025 based on voluntary online research and publicly available information. We have not personally tested every tool or provider mentioned. This article is for educational purposes only, and readers should independently evaluate each service provider based on their specific business requirements. Content is updated every six months. To request an update, please contact us at [email protected].