Also, if debt on a corporate card is overdue, it may show up on the credit report of an individual cardholder. This could happen if the card comes with individual liability or joint liability (which is when both the employer and employee are on the hook for the debt). CreditCards.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which CreditCards.com receives compensation.

With a moderate annual fee of $95, cardholders will receive complimentary Hilton Honors Gold status with the opportunity to earn Diamond status when they spend $40,000 on eligible purchases in a calendar year (enrollment required). ​
You’ll also get a suite of purchase and travel protections, free employee cards, free weekend night rewards with Hilton, a Priority Pass™ Select membership (enrollment required) and more. A corporate card is not the same as a credit card, though they work similarly.

How Do Business Credit Cards Work?

This is because they often offer more robust features, like access to a specific sales representative or access to enterprise software for filing expense reports. An analytics platform can help you identify fraud, waste and abuse in your company. No single credit card is the best option for every family, every purchase or every budget. We’ve picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.

• However, many issuers extend these protections to business credit cards anyway, so it pays to ask about that and carefully review terms in the business credit card agreement.
• Fees related to deposit accounts, debit and credit cards, business loans and other merchant services include payroll, credit card and check collection, processing, reconciliation and reporting.
• Applying for a business card can be a bit different than applying for a consumer card.
• Business credit cards are offered by a wide range of lending institutions.

Most corporate cards offer detailed analytics all in one system regarding where and how company money is being spent. It’s also worth knowing that the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which defines consumer credit protections, does not cover business credit cards. So, limits pertaining to how or when credit card companies can charge fees and raise interest rates don’t apply to business credit cards. However, many issuers extend these protections to business credit cards anyway, so it pays to ask about that and carefully review terms in the business credit card agreement. The best way to manage your corporate credit card is to take full advantage of these tools. If your small business is legally classified as a corporation, has revenue in the millions and has multiple employees who need access to a corporate credit account, it might be time to consider a corporate credit card.

As one-half of JPMorgan & Chase Co., J.P. Morgan offers several corporate card programs. These include programs targeted at business travelers, business-to-business purchases, and general use. Corporate cards can be a great choice for certain businesses, offering good benefits and flexible spending, but there are definite pros and cons to these credit cards. It’s best not to mix personal expenses with business spending on a corporate card. Depending on the type of corporate credit card, either the employee or the employer may be responsible for paying the credit card bill.

How do you qualify for a corporate credit card?

It’s a solid option if you plan to finance a large purchase or consolidate your credit card debt. Offer pros and cons are determined by our editorial team, based on independent research. The banks, lenders, and credit card companies are not responsible for any content posted on this site and do not endorse or guarantee any reviews.

Students also benefit from the discounts and rewards given on fuel transactions, book purchases, etc. However, corporate cards come with certain benefits that small business cards don’t offer — and vice versa. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products.

Best Business Credit Cards of November 2023

Since they are sometimes more complex, corporate cards often come with their own designated customer service representative who can help resolve any issues quickly. These representatives are usually on-call 24/7 and have an intricate knowledge of each company’s individual needs. Business owners can apply with an EIN if they have one established, or they may use their personal Social Security number. Lenders will base their underwriting analysis on all of the information included in the credit application. Businesses have credit reports and establish a credit history in the same way that individuals do, so any activity using an EIN will be reflected in the business’s credit report.

There are likely as many corporate policies regarding corporate card use as there are corporations. These can range from a hard requirement that all business spending be charged to corporate cards to a recommendation that company spending be on a corporate card as a convenience. Check with your company to ensure that you understand your company’s policy. Each corporate card has its own eligibility requirements relating to things like business size, cash on hand, and number of employees. Most limit their card offers to businesses that are organized as corporations, although there are exceptions. A corporate card and a traditional business credit card are both reliable methods of managing business spending.

Many business credit card agreements include a personal guarantee provision regardless of the business’s creditworthiness, so it’s important for borrowers to read and fully understand all of the terms outlined in the agreement. If the lender enacts the personal guarantee provisions for repayment, then any delinquencies on the card could be reported on the individual’s credit report and damage their credit score. In addition, business credit cards sometimes offer more flexible repayment terms, designed to appeal specifically to businesses whose cash flow may be irregular. These may include cash back, with higher percentages offered on frequent business expenses such as wireless phone services, office supplies, shipping, and advertising. Paying the balance before its due date also may trigger a higher cash back with certain cards. Certain business credit cards provide access to airline VIP lounges, free checked baggage, or discounts on hotel reservations.

Savings perks:

Every year, you’ll get a $300 automatic statement credit to cover qualifying airline incidental purchases and a $150 credit for qualifying lifestyle convenience purchases. The Bank of America® Premium Rewards® Elite stood out from the pack of luxury business credit cards because of its many travel-related perks and benefits. While Congress has expanded protections on consumer credit cards, most notably in the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act), it has generally made business cards exempt from the new rules. As a result, consumer protections that many people take for granted with their regular credit cards—such as forbidding interest rate increases on existing balances—may not apply to their business cards. A business credit card is a credit card intended for use by a business rather than for an individual’s personal use. They are available to businesses of all sizes and can help them build a credit profile, separate personal and business expenditures, and improve future borrowing terms.

This proves particularly useful for periodic accounting, applying for a loan, and during tax-filing times throughout the year. Acceptable charges usually fall into travel and entertainment (hosting clients for meals or traveling for business) and company expenses (ordering supplies or paying for services). Justin Resuello shares how to save money, travel better and unlock the hidden value of cash back rewards, airline miles and hotel loyalty programs. Justin is a banking and investments industry veteran, enjoys writing about personal finance and is eager to share his learnings with others. Airline miles or hotel points might be most useful for a company that has teams of employees who travel the world frequently to fulfill their mission for customers.

The Chase Ink Business Cash® Credit Card knocks it out of the park when it comes to the welcome bonus. Of the cash back business cards we analyzed, Ink Business Cash had one of the highest cash back rewards to spending requirement ratios. A big benefit of a corporate card is that it can help a business keep a lid on costs. That’s because a corporate card enables a business to closely control and monitor spending.

The information related to Ink Business Preferred® Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Corporate cards are less risky for individual cardholders, since responsibility for debt is tied to the company the card is issued to (and possibly employee cardholders who make unauthorized purchases) — not any one individual. Retail stores’ co-branded credit cards can give shoppers valuable benefits, such as discounts and early access to sales, especially during the holidays.

However, alongside cashback and travel rewards, you can expect to find additional perks. Many corporate cards offer valuable benefits from software partners, like discounts on subscriptions or credits. You can also find corporate cards that offer even greater travel perks, such as access to concierge service and fee-free foreign transactions. Corporate credit cards are credit cards issued to employees of established companies that let them charge business https://1investing.in/ expenses—such as hotel stays and plane tickets—without having to use their own cards or cash. These cards, which are also known as commercial credit cards, can make it easier for employees (and employers) to manage expenses, and many offer perks like frequent flyer miles and access to airport lounges. When this abnormal charge is made to a corporate credit card, a live alert is made to a supervisor for immediate approval before any payment is approved.