Take the Personal Out of Business Travel

Make personal cards unnecessary for business trips

It’s common for companies to ask employees to pay for business expenses with their personal credit card – especially those who travel infrequently. In fact, recent research by Visa and industry experts suggests there are approximately 77 million full-time employees (FTEs) who do not have their own corporate credit card. If the need to travel arises, they will use their personal credit card to pay for it. The practice of paying for business travel expenses with a personal card isn’t limited to a company’s FTEs. There are also contingent workers – interns, contractors/freelancers, consultants, guest speakers and recruits to consider.

The impact of using personal cards for business travel

Coupled with the time it takes for an organization to process reimbursements, paying business expenses with a personal card can be a financial hardship for some employees. Slow reimbursement could lead to the employee incurring finance charges. Balances left unpaid until reimbursement could negatively affect their credit score.

For the employee with little access to or poor credit, paying for business expenses with a personal card can be both stressful and embarrassing. The employee could face card declines, need to ask a manager to book business travel on their card, or ask co-workers to help cover out-of-pocket expenses, such as dinner, while traveling.

For some, a credit card is a cushion for unforeseen emergencies. Business travel, especially if it’s last minute or expensive, can wipe out that cushion, leaving the employee unable to pay for their unexpected personal emergency.

Similarly, consider the instance where an employee doesn’t have a corporate card and reaches out to their manager for help booking business travel. A manager using their corporate card to book employee travel could quickly exceed their credit limit. When using a shared card, it’s hard for the manager to differentiate expenses by the person using it. It also means less control for the manager.

Despite the points outlined above, many companies readily allow employees to pay for business travel with their personal card. As a result, many of these companies are wary about adopting a corporate card program. Fearful of the impact that low employee engagement and morale can have on their company, many don’t want to challenge the status quo.
And some finance professionals believe that a corporate card program is too costly. If the bill is paid by the organization, there’s a belief that it creates more work for the finance department. Corporate cards run the risk of fraudulent use and questionable expenses because employees have no “skin in the game.”

The proven value of commercial cards

When implemented with well documented and communicated expense management policies, corporate cards can offer significant financial, operational and security benefits.