What is a corporate card? Guide for your business spending

Key takeaways

• A corporate card, also called a commercial card, provides flexibility and security to complete business transactions with multiple cardholders.

• Corporate credit cards are available to large, established companies with significant revenue, whereas business cards are a better fit for smaller, individually owned businesses.

• Companies can get several types of corporate credit cards, from virtual multi-currency cards to purchasing cards for everyday expenses.

When you run a business, making purchases and payments is inevitable. After all, you’ve got to spend money to make money.

Using your own cash or credit card can be enough in the early stages of business, but ideally you should find a solution that can supercharge your startup’s growth and help you manage funds.

As your payment volume increases, so do your needs for financial reporting. Over time, you could lose oversight of your spend. This is where a corporate card for business expenses can streamline your business payments.

What is a corporate card?

A corporate card is a payment card, sometimes a credit card, that employees receive to use in their day-to-day role for work-related expenses. All transactions are tied to the business entity rather than specific employees or the owners.

These cards allow employees to make purchases and spend money quickly and efficiently. Purchases are made on behalf of the company without employees having to use their own funds and get reimbursed later.

Corporate cards also improve transparency and allow businesses to monitor their spending more efficiently. You can even set them up to limit purchases to certain categories. For example, travel and entertainment cards might only allow travel expenses or spending related to hosting an event.

Types of corporate cards

Corporate cards can come with unique benefits or features to help you manage spending or rack up rewards to support your business. You can even adjust liability depending on your needs. 

• Individual liability cards: These cards name a specific employee responsible for paying the card debt. Ultimately, they’re repaid from the business’ funds, but the employee is the card’s owner. As the card owner, they’re subject to a credit check and are personally responsible for unpaid bills.

• Virtual cards: Not everyone needs a physical card to make purchases, and a benefit of virtual cards is that they’re ready to use as soon as they’re opened. You can manage spending online, easily share payment information among your team, and even complete international transactions with an international business debit card. 

• Purpose-driven cards: If your team travels often for meetings or events, a travel and entertainment card might be a good choice to cover those hotel stays and client dinners. If you just need to cover daily expenses, a regular payment card is great. Cards designed for specific needs can help streamline spend management. 

Compare card features, your business needs, and fees to choose the best corporate card for your business. 

Key features to look for in a corporate card

Corporate cards today are much more than just a piece of plastic. They are a core financial tool. When you are looking for a new provider, look past the basic ability to pay and choose features that give both your team the freedom to work and your finance department full control.

Here are some key features to look out for:

• Advanced spending controls: You can set detailed rules for how company money is spent. You can set limits for each employee, department, or even stop purchases from specific shops. This stops people from overspending while making sure they can still buy what they need quickly.

• Real-time transaction visibility: Finance teams don't have to wait for bank statements anymore. You get instant alerts and see purchases immediately on digital screens. This real-time view is vital for checking budgets and quickly spotting anything unusual.

• Receipt and expense management: These tools stop the problem of lost receipts. The system has built-in tools to grab, upload, and automatically link receipts to the right card payment. This automation makes sure your records are ready for an audit and speeds up your accounts work dramatically.

• Virtual and physical card options: Your business can choose the right card for any situation. You can issue standard physical cards for spending in person, plus flexible virtual cards. Virtual cards can be created instantly, used only once, or linked to one online supplier, making them perfect for secure online and remote spending.

• Fraud prevention and security: Security is a core part of the card programme. You get modern features like secure chip technology, constant transaction checks, and instant alerting to catch fraud quickly. You can also freeze and unfreeze cards instantly, giving you full control over any security risk.

• Accounting integration: Your spending data should not be kept separate. A good card programme connects directly and easily with accounting platforms like Xero, QuickBooks, or Sage. This link automatically moves all expense details to your accounts, making month-end closing much faster and more accurate.

• Multi-currency and global acceptability: If your business operates globally, your card must too. The programme offers wide use abroad for paying suppliers or travel costs. This includes direct support for different currencies and acceptance at global shops, ensuring your team can always make necessary purchases overseas.

• Policy enforcement: The system makes sure people follow the rules every time they spend. Automated rules can be set to require a receipt upload immediately or even block a payment that breaks company rules. This proactive control is managed by the card itself, so finance doesn't have to intervene constantly.

• Customisable approval workflows: For large or important purchases, you can set up detailed approval steps. The system lets you create multi-stage approval processes that are tailored by the department involved or the spending amount. This adds necessary checks without slowing down normal work.

How does a corporate card differ from a regular credit card?

The spending and debt features work in the same way, but a corporate card isn’t just a typical credit card. Opening the card itself requires some extra steps, and the business entity is responsible for the card and purchase rather than any individual.

A corporate card is usually issued by a bank, and you have to go to the specific banking unit that deals with their corporate card program. Visa’s corporate card service, for example, is available through all the big banks, and they provide you with the name and contact details of the specific person who deals with these cards. So, it’s not your average banking service.

There’s also the issue of liability. Small business owners using their own credit cards are individually responsible for the debt incurred, which can affect their credit score. 

For a corporate card, while the employee is using the card, the business foots the bill. This effectively protects the individual against any liability that comes with non-payment of the debt.

What are the benefits of corporate cards for businesses?

As well as providing credit facilities to improve your business’ cash flow, corporate cards provide your business with many benefits.

Flexible access for spending

Corporate cards are essential if your staff need to make business purchases directly, as they virtually eliminate the need for out-of-pocket spending and the slow, cumbersome reimbursement process.

A card empowers your teams with instant access to company funds, giving them ownership over their budgets. At the same time, management retains full control by easily setting clear spending controls based on amount, merchant, or expense category.

Improved tracking and real-time visibility

Every transaction generates an automatic, detailed audit trail that is logged and categorised instantly. This real-time visibility is vital: it allows managers immediate insight into spend trends, making it easier to monitor budgets and enforce company policies proactively.

Furthermore, this transparency ensures accountability, as employees know that every expenditure can be instantly traced back to them, supporting policy adherence and good spending habits.

Streamlined expense management

The integration of corporate cards with expense software fundamentally cuts down on paperwork and manual processing for the entire finance team.

Automated reconciliation means accounting staff can be far more efficient, with less time spent chasing receipts and fixing errors during month-end close. The best programmes allow you to set custom limits for specific departments, issue virtual cards for individual vendors, and link transactions directly into approval workflows that align with your internal compliance needs.

Enhanced cash flow and working capital

Corporate card programmes often come with interest-free extended payment terms, typically 30 to 55 days, providing a substantial boost to your working capital. This float gives the business more time to manage its cash flow between the point of purchase and the final settlement date.

Substantial rebates or reward programmes attached to high-volume card spend further create tangible added value for any growing company.

Rewards and perks

Your business can maximise the return on investment from card spending by earning loyalty points, cashback, or frequent flyer programme points on routine purchases. You can then redeem these benefits or apply them toward future flight expenses or employee incentives.

Additionally, many cards offer bonus features like exclusive travel insurance, emergency assistance, or lounge access, which are especially valuable for businesses with significant travel or recurring SaaS subscriptions.

Security and fraud controls

Modern card platforms offer advanced security features that significantly reduce the risk of fraud and provide instantaneous protection. Controls include the ability to freeze a card immediately, issue single-use virtual cards for secure one-off payments, and set instant transaction alerts.

These features empower companies to react immediately to any anomalies, suspicious activity, or attempted policy violations before they become financial losses.

Can corporate cards support wholesale and trade payments?

Corporate cards simplify wholesale and trade payments by bringing inventory and supply purchases onto a single platform, significantly easing the burden on AP and procurement teams.

Corporate cards can separate trading account spend from general business expenses, providing detailed transaction data for quick reconciliation and reporting.

The cards’ extended payment terms and centralised control are great for cash flow, letting your business hold onto working capital longer while still paying vendors on time.

For security, card-linked spend controls, approval flows, and virtual cards drastically reduce fraud risk and give you better oversight on payments to all your local and international suppliers, too.

Does my business need a corporate card‌ programme?

Whether or not you need a corporate card programme depends on your business’ size. Larger, well-established corporations with significant spend are the most eligible for corporate cards and reap the most benefits. 

If you’re a sole trader or a small business, a corporate card programme won’t be suitable for your level of spend or income.

But as your business grows and turnover increases, your financial reporting might become more complex. In this case, a corporate card may be a sensible option.

However, there are a few things you should be aware of before deciding on a corporate credit card:

• Check the corporate card fees first. Depending on the number of employees in your business, the annual fee per card can quickly accumulate and outweigh the potential benefits.

• Review the card’s foreign exchange rates. If you spend a lot in overseas currencies or make a high volume of purchases in foreign currencies, this can also get expensive.

Fees are inevitable, but there are ways to reduce the cost of a corporate card.

What are the fees involved with corporate cards?

You can expect to pay an annual fee for using almost any corporate card service. Then, you’ll generally pay an extra annual fee per card issued to an employee, which vary depending on the bank and the service.

Then there’s the interest. Corporate cards are usually credit-based or charge cards. Like a regular credit card, they have interest charges if you don’t pay back the debt within the set time limits. This interest rate can range from 12.65% to almost 18% depending on the issuing bank.

On top of this interest rate, there are fees for international transactions, foreign currency spend and foreign exchange. If your business operates internationally, these fees can very quickly add up. It’s a good idea to compare business accounts and card services to get the best deal. 

Luckily, there’s a low-cost alternative to corporate cards

Corporate cards are extremely beneficial to your business, but you’re not stuck with the big banks’ high fees. Airwallex Borderless Cards are your alternative to the usual corporate card.

Borderless Cards are multi-currency virtual cards, meaning you don’t need a physical card to make purchases. They’re free to create, and once your business account is up and running, you can create cards and begin spending instantly.

There are no annual fees, absolutely no foreign transaction fees, and you can save up to 90% in FX fees compared to those offered by the big banks. You can also make international money transfers in 23+ currencies, opening your business up to a world of opportunities.

You’ll also get expense management software to keep track of your Borderless Card expenses, proactively control employee spending and save everyone some time. If that doesn't cheer your team up, we don't know what will.

FAQs

What features should a corporate card provide for global travel?

The best corporate cards offer robust multi-currency support and very low foreign exchange (FX) fees to maximise cost efficiency when spending abroad.

Global merchant acceptance is essential, ensuring employees can reliably pay worldwide. It should include instant control features for setting spending limits and fraud prevention, alongside integrated expense automation to simplify receipt capture and reconciliation.

Finally, look for valuable travel perks, such as comprehensive insurance and lounge access, and guaranteed access to worldwide ATM networks for necessary cash withdrawals.

Can I get a virtual corporate card without a credit check?

Yes, many modern providers now offer virtual corporate cards without needing a personal credit check.

These cards are usually issued based on your overall business account profile and operational data, rather than relying on an individual's credit history. This process allows businesses, including startups and smaller teams, to access spending tools immediately upon account approval.

This approach means there is typically no lengthy paperwork, no personal credit scoring involved, and you avoid the wait for physical card delivery.