What is a corporate card? How they work (2026 guide)

Key takeaways

• A corporate card is a payment card your business issues to employees, so purchases are billed to the company instead of a personal account.

• Corporate cards come as credit, debit, prepaid, or virtual cards, and the right type depends on your company's size and how it manages cash flow.

• Airwallex Corporate Cards give Singapore businesses multi-currency spending, built-in expense management, and no FX fees when you spend from your held balances.

So, what is a corporate card? It's a payment card that a business issues to its employees, so they can cover work-related costs without dipping into their own money.

The card is tied to the company, not the person using it, which means the business is the one settling the bill.

This guide walks through how corporate cards work, the different types available to businesses in Singapore, and how Airwallex Corporate Cards fit into a broader approach to managing company spend.

What is a corporate card?

A corporate card (or corporate credit card) is a payment card issued to a business, not an individual, for employees to use on work-related expenses.

The transaction is tied to the company, so the business settles the bill, not the employee or the business owner.

Corporate cards come in several forms, including corporate credit cards, corporate debit or prepaid cards, and physical or virtual cards. In Singapore, more businesses are moving toward digital-first corporate card programs instead of manual reimbursements.

With a corporate card, employees pay for approved purchases directly, without using their own money and waiting to be paid back.

This gives finance teams clearer visibility into spending and lets you restrict how and where a card can be used: for example, limiting a travel card to flights and hotel bookings only.

How do corporate cards work?

Setting up a corporate card program starts with choosing a provider and deciding which employees need access to company funds. From there, you issue cards based on how each person or team spends: travel, software subscriptions, or day-to-day purchases.

Each card runs within rules you set, such as spending limits, approved merchant categories, or expiry dates. That keeps spending aligned with company policy without you having to approve every transaction individually.

Transactions feed directly into your expense management and accounting software, so finance teams see spending as it happens instead of waiting for a month-end statement.

At the end of the billing cycle, the business settles the balance. Because liability usually sits with the company rather than the employee, staff aren't left carrying personal debt while they wait to be reimbursed.

Corporate card vs. business credit card

Corporate cards and business credit cards are both designed for business spending, but they work differently. The main differences are who is responsible for the balance, how the card is funded, and who can qualify.

Here’s a quick overview:

Who's liable for the balance?

With a corporate card, liability often sits with the business rather than the employee using the card. However, this isn't universal. Some providers offer different liability structures depending on the card programme.

For example, Citi offers different types of corporate card liability:

• Sole Corporate Liability: The company is responsible for the card balance.

• Joint & Several Liability: The company and employee are both responsible for the balance.

• Personal Liability: The employee is responsible for the balance and claims eligible expenses back from the company.¹

Business credit cards more commonly require the business owner to provide a personal guarantee, particularly for smaller businesses. This means the owner may be personally responsible for the balance if the business does not repay it.

How hard is it to qualify?

There's no standard eligibility requirement for corporate or business credit cards. Requirements vary by provider and card type, and can be very different depending on whether you're getting a credit facility or using funds already held in your business account.

Note that not all corporate cards are credit products.

Some fintech providers issue cards that draw directly from your company's existing balance rather than extending a line of credit. These can have different eligibility requirements from traditional business credit cards.

Airwallex Corporate Cards work this way. They draw directly from the funds held in your Airwallex account, and you pay no FX fees when spending in a currency you already hold.

5 types of corporate cards

Not all corporate cards work the same way. The type you choose affects how your business borrows, repays, and controls spend, so it's worth understanding the main options before you sign up with a provider.

1. Corporate credit card

A corporate credit card gives your business a credit limit set by the issuer. You spend against that limit and repay it at the end of each billing cycle, either in full or through minimum payments, with interest charged on anything you carry forward.

Some issuers structure liability so the company is fully responsible, while others split liability between the company and the employee named on the card.

2. Corporate debit card

A corporate debit card draws directly from funds you already hold in your business account. There's no credit line and no interest, since you can only spend what's already there.

This makes it easier to control cash flow and avoid unexpected debt, which is why many small and mid-sized businesses in Singapore prefer this structure over credit-based cards.

3. Corporate prepaid card

A corporate prepaid card works similarly to a debit card, but it draws from a separate preloaded balance rather than your main account.

You top it up in advance and spend down that balance, which makes it useful for setting a fixed budget for a specific employee, project, or trip.

4. Corporate charge card

A corporate charge card lets you spend on a short-term line of credit with no fixed limit shown on the card, but you must clear the full balance every billing cycle. Miss that deadline, and you'll face steep late fees.

Charge cards are less common than credit cards in Singapore today, and are mostly issued by a small number of premium providers. 

Read our full guide to charge cards for a closer look at how they work and who they suit.

5. Corporate virtual card

A corporate virtual card exists only in digital form, with a card number, expiry date, and CVV you can generate instantly for online purchases or add to a digital wallet.

Virtual cards are common for software subscriptions and one-off online payments, since you can issue and cancel them quickly without waiting for a physical card.

Corporate card fees and charges

Corporate cards come with a mix of recurring and one-off fees, and these vary a lot between providers. Knowing what to expect helps you compare offers properly instead of just looking at the headline rewards.

Annual fees

Annual fees on corporate credit cards in Singapore range from S$0 on fintech-issued cards to close to S$700 on premium, invitation-only cards. UOB's Regal Business Metal Card, for example, charges a non-waivable annual fee of S$692.71³.

Interest charges

If your business carries a balance past the payment due date, interest applies to the unpaid amount. Citi's Business Card, for instance, charges a retail interest rate of 27.9% per annum on unpaid balances, alongside a minimum interest charge of S$3.00 a month¹.

Other common fees

Beyond annual fees and interest, watch out for:

• Foreign currency transaction fees, charged when your team spends in a currency other than Singapore dollars

• Late payment fees, charged when the minimum amount due isn't paid by the due date

• Cash advance fees, charged when a card is used to withdraw cash, usually at a higher interest rate than regular purchases

Debit-style or prepaid corporate cards tend to skip most of these fees entirely, since there's no credit line or interest involved; you're simply spending funds you already hold.

4 benefits of a corporate card

A corporate card changes how your business handles day-to-day spending, not just who holds the card. Here are the benefits you get from using a corporate card:

• Better visibility over company spend: Every transaction shows up in real time instead of surfacing weeks later on an expense report. Finance teams can see exactly what's being spent, by whom, and where, as it happens.

• Control without micromanaging: You can set spending limits, restrict specific merchant categories, and issue cards with built-in rules. That means you don't need to approve every purchase individually, while still keeping spend within policy.

• No more out-of-pocket claims: Employees stop fronting money for work expenses and waiting to be repaid. This matters most for frequent travellers or teams making regular supplier or software payments.

• Easier reconciliation: Corporate card transactions typically sync directly with accounting software, cutting down on manual data entry and speeding up month-end close.

5 factors to consider when choosing a corporate card provider

Not every corporate card suits every business. Before committing to a provider, weigh these factors against how your business actually operates.

1. How your business spends

If your team regularly pays overseas suppliers or runs ad spend in foreign currencies, a multi-currency card that avoids foreign transaction fees will save more than a rewards-heavy card with a high annual fee.

If most spend is local and card-based, a bank rewards card might make more sense.

2. Credit vs. debit structure

Decide whether your business needs a credit line to manage cash flow timing, or would rather spend only what it already holds.

Our guide on the best corporate credit cards in Singapore breaks down fees and features across both bank and fintech options if you want a side-by-side comparison.

3. Eligibility requirements

As covered above, eligibility varies widely: from no minimum revenue on some debit-style cards to income or turnover thresholds on premium credit cards. Check this before applying.

4. Speed of issuance

Bank-issued cards often require a separate application per employee, which can take days or weeks. Fintech providers typically let you issue cards from a dashboard in minutes.

5. Card format needs

If your team makes frequent one-off online payments, a virtual card that can be issued and cancelled instantly may suit better than waiting for physical cards to arrive.

Issue corporate cards in 60+ countries with Airwallex

If your business spends internationally, Airwallex Corporate Cards let you spend directly from your multi-currency balances, with card controls and expense management built in. Here’s what you get with Airwallex:

Spend from your held currencies

Pay directly from the currency balances in your Airwallex Wallet. If you hold the currency you're spending in, there are no FX fees. If you don't, Airwallex automatically converts the funds at competitive rates that save you up to 80% on FX fees.

Control spending across your team

Create company and employee cards with spending limits and approval workflows. Freeze or cancel cards when needed, and see transactions in real time instead of waiting for a monthly statement.

Connect cards to your finance stack

Card transactions sync with accounting software such as Xero and connect with Airwallex's Expense Management, Bill Pay, and Purchase Orders tools, so your card spending can flow into the rest of your finance workflows.

Frequently asked questions (FAQ)

Who is eligible for a corporate card in Singapore?

Eligibility depends on the provider and card type. Debit-style corporate cards from fintech providers often have no minimum revenue requirement, while premium bank-issued corporate credit cards can require a minimum personal income, company net worth, or annual turnover, as outlined in the eligibility section above.

Does a corporate card affect your personal credit score?

It depends on the liability structure. Under corporate liability, the company is responsible for the balance, so it typically doesn't touch the employee's personal credit score. Under individual or personal liability, the employee pays first and claims it back, which can affect their personal credit if a payment is missed.

Can employees use a corporate card for personal purchases?

No, corporate cards are meant for approved business expenses only. Most providers enforce this through merchant category restrictions, spending limits, and real-time transaction alerts, so personal spending on a corporate card is usually blocked or quickly flagged.

What's the difference between a corporate card and a corporate virtual card?

A corporate virtual card is a digital-only version of a corporate card, with no physical plastic. It works the same way for approval and liability purposes, but you can issue or cancel it instantly for a single purchase, subscription, or online payment.

Does a business need many employees to justify a corporate card program?

Not necessarily. While corporate card programs were traditionally built for larger organisations with many cardholders, providers like Airwallex let you create individual employee cards instantly online, so even a small team can issue cards without waiting on a lengthy setup process.

How is a corporate card different from a company reimbursing employees?

With reimbursement, employees pay first out of their own pocket and wait to be paid back, which ties up their personal cash flow. A corporate card removes that step entirely, since the charge goes straight to the company account at the time of purchase.

Sources:

1. https://www.citibank.com.sg/global_docs/pdf/Citi_Commercial_Cards_Programme_Agreement.pdf

2.  https://www.dbs.com.sg/business/cards/credit-cards/dbs-visa-platinum-business-card

3.  https://www.uob.com.sg/business/transact/cards/uob-regal-business-metal-card.page