Jordan Tarver

Credit card debt and card fraud are complex issues that continue to become more common. Whether we evaluate the past five years or even look at projections, we see an alarming increase in debt and fraud both in the United States and worldwide. Because this is a prevalent issue in society, preventive measures are encouraged to safeguard yourself from falling within the statistics in this report. US Credit Card Debt Has Seen a Shocking Increase Credit card debt statistics show that US credit card debt is on the rise, and it has been for the past handful of years. For instance, since 2015, card debt has increased by an average of $48.75 billion each year. This statistic is evidence that US card debt is on an upward trend and doesn’t give too much hope for a drastic decrease in debt anytime soon. The looming credit card debt within the US is usually a result of cardholders who miss payments, can’t repay their balances, or deal with a ton of interest charges that send them spiraling off in a seemingly endless debt trap. Because that’s never a fun place to be in, it’s crucial for cardholders to make timely payments and use their card responsibly to avoid falling into this debt spiral. US Credit Card Debt Through the Years While looking at the average increase in card debt per year gives a good bird's-eye view, it’s eye-opening to understand how the amount of debt has changed during the past five years. For instance, in 2015, card debt was $898.7 billion compared to $1.09 trillion in 2019, which is a 21.28% increase. For a closer look at US credit card debt, here is the amount of debt per year since 2015: From 2015 to 2019, credit card debt increased by an average of 4.95% every year. The largest increase for one year was 6.85%, between 2015 and 2016. The smallest increase was 2.94%, between 2017 and 2018. These statistics and calculations show that credit card debt has historically been increasing. US Credit Card Debt vs Total Consumer Debt Unfortunately, credit card debt isn’t the only debt-related problem in the US. Americans also deal with other debt, including loans and mortgages. The total consumer debt in the US, which includes credit cards, auto and student loans, and mortgages, hit $14.15 trillion in 2019. With revolving debt amounting to $1.09 trillion and nonrevolving debt at $3.09 trillion, that means housing debt makes up $9.97 trillion of consumer debt. Furthermore, here’s a look at how consumer debt has changed during the past five years: 2015: $12.12 trillion 2016: $12.57 trillion 2017: $13.15 trillion 2018: $13.55 trillion 2019: $14.15 trillion These numbers are truly staggering. On average, there was a 3.90% increase in consumer debt every year. That’s less than the 4.95% average increase in card debt we saw between the same time period. Regardless, both card and consumer debt are continually on the rise in the US. Each American Cardholder Saw an Increase in Their Card Debt Not only is overall card debt on the rise in the US, but debt for each cardholder is also on the rise. In 2019, the average card debt for each US cardholder was $6,194. Compare that to 2018, and you’ll see an increase of $154. Although not a massive change, this 2.55% increase in debt per cardholder is another indicator of the growing average credit card debt in the US. US cardholders who want to avoid watching their credit card balances increase year-over-year should focus on paying down their balances monthly, setting up automatic payments, and using a budget. While it may seem like credit cards give you access to free money, that is never the case. If you can’t repay what you owe, you may find yourself drowning in interest charges. Surprising Insights on Credit Card Ownership in the US Ready for some eye-opening card ownership statistics? Here’s what Experian reports: Americans have a total of 484 million credit cards. On average, Americans hold four credit cards with an average account history of seven years and two months. In 2019, Americans opened 20.8 million new accounts. Now, although this isn’t directly related to the alarming increase in US card debt, here’s what it does show: Americans are creating more opportunities for card debt because of the number of cards they own. More credit cards mean more credit available, which means more potential debt. Cardholders and Their Looming Credit Card Debt As mentioned, more credit cards mean more possibilities for unpaid balances. There’s even evidence that shows there are more US cardholders with card debt than there are without. For example, approximately 55% of US cardholders have card debt. This means that for every 20 cardholders, 11 cardholders have unpaid balances. Carrying a credit card balance can easily turn into a massive expense on its own because of high ongoing annual percentage rates (APRs). When cardholders carry a balance, issuers charge interest monthly, which racks up quickly. For example, say you have a balance of $6,194. If your card charges a 17% ongoing APR and you pay the 3% minimum payment each month (approximately $186), it would take you 46 months to pay off your balance, and you’d pay $2,245 in interest. Cardholders’ Quick Guide to Escaping Credit Card Debt Credit card debt happens, even to those who may think they have a good grip on their finances. A few unexpected expenses or missed payments can start you down the path of racking up debt over time. However, while it can happen to anyone, card users can also pay off credit card debt with a few responsible tactics, which are outlined below: Debt snowball method: This method is one of the quickest ways to pay off your debt. You start by paying off the card with the least amount of debt while making the minimum payments on the others. Once you pay off your smallest balance, you move to the next smallest and so on until all your card debt is repaid. Debt avalanche method: With this payoff method, instead of focusing on the smallest balance first, you focus on paying off the card with the highest APR while making the minimum payment on the others. Once the card with the highest APR is repaid, you move onto the card with the next highest. Use a balance transfer card: Some issuers offer balance transfers credit cards, which typically charge no interest on balance transfers for up to 21 months. This means you can transfer all of your balances to one card to help pay down all that you owe while avoiding interest. Business owners can also use business balance transfer credit cards. Cardholders that realize they’re in credit card debt should consider setting their cards off to the side. It’s difficult to pay down your accrued card debt while actively adding to the balance owed. Card Fraud Losses Are on an Upward Trend in the US As much as we wish credit card fraud to disappear entirely, unfortunately, that’s likely never going to happen. When we look at current credit card fraud statistics, we see the following: Global card fraud losses amounted to $27.85 billion in 2018 Card fraud losses worldwide are projected to hit $35.67 billion by 2023. That’s a whopping increase of $7.82 billion since 2018. If you experience credit card fraud, don’t be quick to think you did something wrong or made yourself vulnerable. It’s hard to avoid―even experts like myself who have a suite of credit cards experience card fraud. What matters is how you respond, so be sure to call your issuer immediately to report the fraud and lock your card. Credit Card Fraud Is the Most Common Type of Identity Theft Not only is credit card fraud a rising issue around the world, but so is identity theft. Identity theft is when someone steals your identity and uses it for their own personal gain, such as opening a new account. While there are several types of identity theft, such as card fraud, loan or lease fraud, or bank fraud, credit card fraud is the most common type, with 271,823 reported cases in 2019. Percentage Global Fraud Losses Around the World As mentioned, credit card fraud is not just a problem in the US. Unfortunately, we see it happening all around the world. For example: In 2010, 46.9% of fraud losses were right here in the US, and 53.1% were outside of the US. In 2018, 34% of losses were in the US, and 66% were outside. While this is a 12.9% decrease in losses within the US compared to 2010, it’s also a 12.9% increase in losses outside the US. Fraud losses inside and outside the US tend to fluctuate every year. However, historically, fraud losses within the US have been less than outside. This isn’t necessarily a positive, though, because a lower percentage of losses in one region means a higher percentage in another. A Look Into US Card Fraud Reports Since 2015 Although it’s essential to analyze credit card fraud reports around the globe, it’s helpful to identify fraud statistics specific to the US and how they’ve changed over the course of the years. For instance, there were 74,902 reports of credit card fraud in 2015 compared to 271,823 reports in 2019, which is about a 263% increase. For a more granular perspective, here are the reports for each year. Between 2015 to 2019, on average, there was a 41% increase in fraud reports every year. The largest increase for one year was 72.35%, between 2018 and 2019. This data helps illustrate and prove that credit card fraud is absolutely on the rise. New Account Fraud Is More Common Than Existing Account Fraud There are two types of credit card fraud: new account fraud and existing account fraud. New account fraud, or account opening fraud, is the more common of the two and has seen an 88% increase in 2019 compared to the prior year. When a fraudster steals your identity and opens a new account under your name, their mischievous plan typically lasts up to 90 days, where they max out any credit limits. Existing account fraud, on the other hand, happens when a fraudster takes over an existing account. This type of fraud has seen a 4% decrease in 2019 compared to the previous year, meaning that new account fraud is an easier win for fraudsters. Cardholders who experience either type of fraud should contact their bank or issuer immediately. Most People Are Unaware of New Account Fraud Although new account fraud is common, most people are unaware of it. A report put together by the Identity Theft Resource Center (ITRC) shows that most respondents had never heard of account fraud; however, they were concerned about this type of fraud happening to them. Here’s a snapshot of that survey from the ITRC. The majority of concerned participants were worried this fraud would hurt their credit or take a long time to correct the problem. However, those concerns are not the only repercussions of new account fraud. This type of fraud can also freeze access to your funds, make you susceptible to other fraud, and require you to get new cards with new information. Banks Strive to Safeguard Against New Account Fraud Now you may be wondering, how do people prevent themselves from new account fraud? Well, most of the time, that protection lives in the hands of the banks. When someone opens a new account, it’s the bank's responsibility to verify the identity of the customer and recognize potential fraudsters. The Association of Certified Fraud Examiners (ACFE) outlines 15 red flags banks and issuers should look out for when someone is opening a new account. Some of these warning signs include: Applicant’s name doesn’t match the Social Security number information returned by the credit bureau Primary identification cards issued within the previous 60 days, unless the applicant has recently moved from out of state The address on the ID card is different than the home address provided Applicant is older than 25 but has no prior banking experience Bottom Line Cardholders never want to find themselves dealing with credit card debt or fraud. However, it’s unfortunately on the rise, so there’s a possibility they’ll experience one or the other. If someone experiences debt or fraud, they need to take action immediately, such as paying off their balances as quickly as possible or contacting their issuer to report the fraud.

People might think using a personal or business credit card is safe, but credit card fraud is a major global and national problem. Although some people skate by without ever dealing with fraud, these seven alarming credit card fraud statistics goes to show how prevalent it is in our world. 1. Credit Card Fraud Losses Reached $27.85 Billion Worldwide Credit card fraud spans further than just in the United States. As a matter of fact, in 2018, card fraud losses reached $27.85 billion worldwide. This is an increase of 16.2% from $23.97 billion in 2017. Not only is a 16.2% increase in fraud losses a major jump in a single year, but if we look at projected losses, it gets even worse. The Nilson Report projects that, by 2023, credit card fraud losses will reach $35.67 billion worldwide, which is a 28.08% increase from 2018. 2. The US Accounted for 34% of Global Fraud Losses in 2018 Credit card fraud is not a rare occurrence, but it’s particularly prevalent in the US. Americans were the victims of 34% of the world's credit card fraud in 2018. What’s more, the US accounted for 47.3% of card fraud losses in 2012. Fortunately, that represents the highest percentage between 2000 to 2018, so we can take some comfort that we're seeing a downward trend. 3. Credit Card Fraud Makes Up 42% of Identity Theft In 2019, there were 650,572 reports of identity theft, with 271,823 reports linked to credit card fraud—or about 42%. This makes card fraud the most common type of identity theft in the US. Falling just after card fraud, the Consumer Sentinel Network Data Book reports loan or lease fraud as the second-most common type of identity theft. Phone or utilities fraud is the third-most common. To be clear, credit card fraud happens when someone gains access to your credit card information and makes an unauthorized purchase. Meanwhile, identity theft happens when someone steals your personal information to use your identity for their purposes. In the case of this credit card theft statistic, someone could steal your information to open a new card under your name. 4. New Credit Card Account Fraud Increased by 88% In 2019 Not only is credit card fraud a major global and national issue, but some aspects of it are also continuing to rise. For instance, in 2019, new account fraud increased by 88% when compared to the previous year. Compare that to existing account fraud and, fortunately,  you see a 4% decrease from 2018 to 2019. You may also know new account fraud as account opening fraud or account origination fraud. This is when fraudsters use stolen or fake identities to open new credit cards. Their number one goal? Max out the card’s limits as quickly as possible, typically within 90 days. To safeguard you from this happening, the Association of Certified Fraud Examiners (ACFE) disclosed 15 red flags that banks can look out for when a customer is opening a new account. 5. Younger People Report Fraud Losses More Often Some age groups report fraud losses more often than others. For example, in 2019, 33% of people ages 20 to 29 reported a loss due to fraud. That’s 20% more often when compared to people ages 70 to 79. However, just because those age groups reported fraud more often doesn’t necessarily mean they lost the most money. When you look at people aged 70 or older, the median loss was much higher. The Consumer Sentinel Network Data Book reports people ages 70 to 79 had a median loss of $800 in 2019. Furthermore, people aged 80 and older had a median loss of a whopping $1,600, which is a 100% increase when compared to people ages 70 to 79. Take that number and compare it to people ages 20 to 29―their median loss was only $448. 6. California Reported the Most Credit Card Fraud in 2019 While credit card fraud is a national issue, it varies drastically by each state. California’s card fraud, for example, made up 51% of its 101,639 identity theft reports in 2019, making it the state with the most card fraud. That’s 51,836 credit card fraud reports in just one year. Coming in right behind California are Florida with 33,069 fraud reports and Texas with 27,207. However, as I mentioned, card fraud truthfully varies from state to state. For instance, Wyoming is the state with the fewest fraud reports in 2019, with only 108 reports. Right after Wyoming, there’s Vermont with 145 reports and South Dakota with 160. I calculated the fraud per state by multiplying the total fraud reports for each state by the percentage of card fraud that made up the specific state’s identity theft reports. 7. Major Card Companies Have the Most Fraud by Card Type Global card companies, including Visa, Mastercard, American Express, and Discover, experienced the most fraud losses by a longshot. These global brands reported losses of $24.86 billion in 2018. Credit card and debit card transactions at nonglobal networks reported the second most fraud by card type with $1.58 billion in losses—or $23.28 billion less than the global card companies. Domestic and private label cards also report fraud losses. Together, however, they only amount to $1.41 billion in losses. What Is Credit Card Fraud? Credit card fraud happens when a thief or fraudster steals your credit card or your card information to make unauthorized purchases or cash advance. Card fraud is common across the world, so it's crucial to understand how to avoid it and what to do if you’ve been hit by a fraudster. How to Avoid Credit Card Fraud Although fraud is a surging issue, there are a handful of tactics you can use to avoid personal or business credit card fraud. Here are some easy ways to help prevent card fraud in your life: Sign the back of your new credit card immediately: When you sign the back of your card, you make it difficult for someone else to erase your signature or cover your signature. Separate your cards and cash: It’s common to carry your cards and cash together in the same wallet. However, if your wallet is stolen, so are both of those belongings. Keeping your cards in a safe and secure place can help you avoid fraud. Report a lost or stolen card immediately: If your card goes missing, report it to your issuer right away. This will make sure no unauthorized purchases are made. Some issuers even let you lock your card online or through the mobile app. Only use your card on secure and trusted websites: Before using your card online to make a purchase, make sure it's a secure site you trust. Secure site URLs start with “https://” and have a lock symbol in the search bar. Monitor your transactions daily: Make it a habit to check your credit card transactions every day. This will help you catch any suspicious activity. If you see a suspicious transaction, report it immediately. What to Do If You Have Credit Card Fraud You would never wish to experience fraud. However, credit card theft statistics show there’s a chance it may happen to you. If you have credit card fraud, follow these five steps: Call your credit card issuer immediately. Change your passwords to your online banking account. Request a credit freeze from each of the three main credit bureaus. Keep an eye on your statements for a few months after the fraud happened. Request a copy of your credit report and report any fraudulent errors. Bottom Line While these credit card fraud statistics are alarming, it doesn’t mean that fraud is unavoidable. You can escape the global fraud problem by following common preventative tactics, such as reporting suspicious activity or a lost or stolen card immediately. You deserve financial security.

An employee credit card permits your employee to purchase goods and services on behalf of the company while giving you the ability to monitor and control spending. Many issuers offer free employee credit cards, allowing you to earn rewards on their spending without paying an additional fee per card. Using employee credit cards will save you the time and hassle of reimbursing employees who pay for business expenses with their own money. Plus, you can more quickly hit spending requirements to earn introductory rewards. A card like the offers $750 cash back when you spend $7,500 within the first three months. Employee credit cards are free. How Employee Credit Cards Work An employee business credit card is an authorized user credit card that you can give to employees for making purchases on behalf of the company. Employee credit cards are assigned to specific employees and are tied to the primary card on the account. Employee credit cards are available on your small business credit card, corporate credit card, or prepaid business card account. You can request additional employee cards from your issuer. Employee business credit cards work just like the primary card on your business’s account. An employee can use the card to make purchases online or in a store. Employee credit cards include the same annual percentage rate (APR), earn the same rewards, and come with the same benefits as the primary card. Most cards will allow you to set spending controls that help protect you from employee abuse. Depending on the type of employee card you choose, either you or the employee will be responsible for paying the monthly bill. If you pay the bill, all of your employees’ charges will appear on your statement. In either case, you can track spending throughout the month via your issuer’s online banking portal. Types of Employee Credit Cards The type of employee credit card that’s right for you and your business depends on the number of cards you need, your business’s annual revenue, and whether you want to avoid personal liability. Corporate credit cards are generally reserved for larger businesses while firms of any size can take advantage of small business credit cards and prepaid business cards. Most Common Types of Employee Credit Cards 1. Small Business Credit Cards A small business credit card is an authorized user credit card owners give to employees to pay for company expenses, such as office supplies. It’s best for businesses with one or more employees. Most business credit cards charge interest on unpaid balances. Owners must provide a personal guarantee to repay, similar to a personal card. If you’re looking to streamline your business-to-business purchasing process, consider a purchasing card to avoid interest. Small Business Employee Credit Card Costs APR: Issuers set their own interest rates based on a spread above the prime rate and rates vary by issuer; however, if you carry a balance, you’ll typically pay between 13% and 25% APR Annual fee: Ranges from $0 to more than $100 per card; many issuers—even those that charge an annual fee—waive annual fees on employee credit cards Neither corporate credit cards nor prepaid business cards charge interest. Corporate credit cards are charge cards and must be paid off each month. Prepaid cards are funded by the owner, meaning there is no loan, and no interest assessed. Small Business Employee Credit Card Rewards Cash back, points, or miles rewards: You may earn up to 5% cash back or five points/miles on business-related expenses. Rates for ongoing rewards vary by the card issuer. You may earn either a fixed rate on all spending or higher returns on specific spending categories Enterprise perks: Free benefits may include access to airport lounges, expedited airport screening, and car rental insurance Small business credit cards for employees earn the same rewards and come with the same benefits as the master card on the account. If you chose a business credit card because it offers rewards tailored to your business’s spending, arming your employees with the same card could prove lucrative. Rewards can be redeemed by the master account holder only. While corporate credit cards come with similar rewards programs and enterprise perks, prepaid business cards typically don’t offer rewards or perks. Small Business Employee Credit Card Spending Controls Small business credit cards offer the ability to both monitor and restrict employee spending. Owners can set individual card limits based on the amount spent, spending categories, or time of day. They also can track spending online and receive an itemized spending breakdown per employee, although the available reporting tools may not be as rigorous as corporate credit cards offer. The master account holder may also receive alerts when employees use the card. Small Business Employee Credit Card Liability Owners must make a personal guarantee to pay the amount owed in the event the business or cardholder fails to do so. A personal guarantee protects the card issuer but places the additional risk on the owner. If an employee makes unauthorized charges on an authorized user credit card, the owner is still responsible for repaying the debt. Corporate credit cards and prepaid business cards do not require a personal guarantee. Under corporate cards, either the company itself or the company and employee cardholders are jointly responsible for paying card balances. With prepaid business cards, the card is funded by the owner, so there’s no balance to repay. Maximum Allowable Number of Employee Credit Cards Most small business credit card issuers set no maximum limits on the number of employee credit cards per account. For example, American Express limits employee credit cards to 99 on some of its cards. On cards with no restrictions, issuers recommend you consider a corporate credit card if you need 75 to 100 employee credit cards or more because those cards offer more robust tracking tools. Where to Get a Small Business Employee Credit Card Most issuers allow owners to get a business credit card online. You may request employee credit cards at application or after your account has been opened. Small business credit cards are issued based on the owner’s personal credit score. When you apply for a card like , you can ask for as many employee credit cards as you need at no extra cost. The issuer recommends a corporate credit card if you need more than 100 cards. 2. Corporate Cards A corporate card allows businesses to issue employee cards to authorized users to make business-related purchases. They’re best for businesses with at least $4 million in annual revenue and $250,000 in credit card expenses. This type of card carries no APR because it's due in full monthly and offers the most robust controls, account management, and reporting features of all employee card types. Plus, the owners don't need to provide a personal guarantee. Corporate Employee Credit Card Costs APR: None because the balance must be repaid monthly Annual fee: Ranges from $0 to more than $100 per card Small business credit cards charge interest on unpaid balances—unless it’s a charge card, which must be repaid in full monthly—while prepaid business cards charge no interest. A prepaid card is funded by the owner, which means there is no balance to repay. Corporate Employee Credit Card Potential Rewards Cash back rewards: You may earn up to 5% cash back on business-related expenses; rates for ongoing rewards vary by card issuer; you may earn higher returns on specific spending categories, like office supplies or airfare Enterprise perks: Free benefits may include access to airport lounges and travel insurance Corporate cards for employees earn the same rewards and come with the same benefits as the master card on the account. Rewards may accumulate in the master account, or the employer may allow employees to keep their rewards. Small business credit cards offer similar rewards and perks as corporate cards. Prepaid business cards generally don’t offer rewards or extra benefits. Corporate Employee Credit Card Spending Controls Centralized monitoring: Track corporate credit card spending in real-time with online dashboards that allow you to monitor individual cardholder use; this powerful analytics solution also allows companies to track the spending the company does most frequently, which can help with budgeting expenses Spending controls: Set up individual limits, locations and times of day when a corporate employee credit card may be used; you may be able to freeze individual cards and receive alerts on employee spending via your mobile devices Corporate cards come with robust monitoring and spending controls that allow owners to restrict how much money individual employees can spend. You may be able to control total spending or limit employees’ spending based on the category. Owners, for example, may want to give employees the ability to purchase gas, but not hotel stays. Both business credit cards and prepaid business cards offer monitoring and spending controls, although management tools may not be as robust. Corporate Employee Credit Card Liability Full corporate liability: The business, not the owner, is responsible for all card charges Joint corporate and employee liability: The company and the cardholder share liability; employee cardholders typically pay monthly card charges based on the firm’s credit card policy and are later reimbursed The primary benefit of a corporate credit card is that company owners typically do not have to provide a personal guarantee to repay, and they have no individual liability. Instead, issuers place liability on the business itself or between the business and the cardholder. Business credit card issuers require the owner to provide a personal guarantee to repay. There’s no personal guarantee with prepaid cards as the owner funds the cards, and there’s no loan. Maximum Allowable Number of Corporate Credit Cards Issuers don’t set limits on the maximum number of card users you can have. However, you must meet certain minimum requirements. In addition to revenue and spending restrictions, issuers typically require a business to have at least 15 corporate employee credit card users to be eligible for a corporate card program. Where to Get Corporate Employee Credit Cards Unlike with other forms of employee credit cards, business owners cannot apply online for a corporate credit card. Owners or managers with spending authority must first fill out an online form or call a toll-free number to speak with a banking representative. Corporate credit cards are issued based on your company’s revenue, card spending, credit rating, and size. The , for example, is a corporate credit card designed for companies with more than $1 million in annual card payments. You’ll pay a $19 annual fee for each authorized user credit card. There is no limit to the number of cards your company can be issued. 3. Prepaid Business Cards Prepaid business cards limit your risk because you’re not borrowing money. They are best for owners who have plenty of cash on hand and who can’t qualify for or don’t want a small business credit card. Prepaid cards are funded with your cash. Once the money on the card has been spent, it can no longer be used unless it’s reloaded. If you have big spending needs, look for a card that offers a daily spend limit of as much as $25,000. Prepaid Business Employee Credit Card Costs Setup fee: Many of the biggest issuers charge no fee to open your account, but a few issuers charge as much as $50 to get you started Monthly fee: Issuers charge a per card fee that often is a tiered price based on the number of cards you need; some issuers waive monthly fees if you need just a couple of cards or if your monthly spending reaches a certain threshold; expect to pay at least a couple dollars per card per month Prepaid employee business credit cards don’t charge interest because you’re not borrowing money. Instead, you’ll pay a monthly fee based on the number of employee credit cards you need and sometimes a one-time setup fee. Neither small business credit cards nor corporate cards charge setup fees or monthly fees. Both types of cards may charge an annual fee, and small business credit cards may charge interest on balances not paid off each month. Prepaid Business Employee Credit Card Potential Rewards Most prepaid business cards do not offer rewards on either the master account or on employee credit cards. You may find rewards of up to 1.5% cash back if you choose a business secured credit card, which acts similarly to a prepaid business card in that a cash deposit determines your credit limit. Both small business credit cards and corporate credit cards may offer rewards of up to 5% back in certain spending categories. You may also receive benefits like free airport lounge access on both types of cards. Prepaid Business Employee Credit Card Spending Controls Since your cash funds the prepaid business card account, your risk is limited to how much money is in your account at any one time. Many prepaid business cards also come with daily spending limits of between $5,000 and $25,000, which also limits your risk. Some prepaid cards allow you to set employee credit card spending restrictions by day or merchant category. You can receive alerts for every transaction, along with daily or weekly balance updates. Neither small business credit cards nor corporate credit cards have daily spending limits, although you’ll be subject to credit limits. Still, both types of cards offer spending restrictions and employee tracking, although corporate cards may have a more robust suite of monitoring tools. Prepaid Business Employee Credit Card Liability A business owner’s cash backs prepaid business cards for employees. There’s no risk to the card issuer, and the business owner won’t be required to provide a personal guarantee. Since this isn’t a credit card, there is no required credit check, either. Employees can only spend the funds available on the card, which can offer protection against employee fraud and limit the owner’s risk. Small business credit card issuers require that owners provide a personal guarantee to repay, which places the risk on the business owner. Corporate credit cards either place the liability to repay on the company itself or require joint liability between the company and the employee cardholder. Maximum Allowable Number of Prepaid Business Cards The maximum number of prepaid business employee credit cards you can get varies by issuer. The maximum number generally ranges from 10 to 200 or more cards. Remember, the number of cards you have may not increase the amount of money you can spend per day from the account. So, if you need dozens of cards or more, and you have big daily expenses, your employees’ spending power may be limited. Where to Get Prepaid Business Employee Credit Cards Most issuers allow owners to apply online for a prepaid business card. You may request employee credit cards at application or after your account has been opened. Because you’re not requesting a revolving line of credit, there is no credit check. Remember, your monthly cost for prepaid business employee credit cards depends on how many cards you need. With , your first two business prepaid cards carry no monthly fee. If you need three to 10 cards, you’ll be charged $29 per month. Developing an Effective Employee Credit Card Policy Before you decide which type of employee credit card policy is best for your business, you should map out—in writing—your company’s credit card policy. This document will set expectations for how employees are to use company credit cards. It also will outline rules for card repayment, expense reimbursement, liability, and credit limits. Employees who receive an employee credit card should sign this document before you allow them to use an employee credit card. When you develop an employee credit card policy, you’ll need to determine who’s eligible, set spend limits and reporting expectations, and define consequences for breaching the policy. You may want to create a checklist yourself or download a corporate credit card policy template. Employee Credit Cards Best Practices Employee credit cards can save you time by eliminating the need to reimburse employee expenses. They can also save you money, especially when you set clear expectations about credit limits and the types of purchases employees are authorized to make. Follow these six best practices when using employee credit cards: Make the rules clear: Your employee credit card policy should spell out clear rules about what employee credit cards should be used for, what spending limits you’ve set, and what kind of reporting you expect when they use the card. Limit card access: You should hand out authorized user credit cards to employees you expect will frequently need to spend money on behalf of the company. You may have employees with occasional expenses you’ll need to reimburse, but they don’t need a card. Set up account restrictions: Employee credit card issuers offer many tools to help you limit your risk. Take advantage of the ability to set individual card limits—either spending caps or restrictions on certain categories of spending. Your office manager may need the ability to purchase office supplies, not airfare. Turn on alerts: Card issuers allow you to set text alerts based on card spending. Set an alert for spending over a certain threshold or suspicious activity. Ask for receipts: Opening an employee credit card limits the need to offer reimbursement. However, that reimbursement process also forced employees to account for their own spending. Continue this practice by requiring receipts and matching them up to your monthly billing statement. Review your account: Limit the risk of employee fraud or abuse by regularly reviewing account transactions prior to receiving your monthly bill. Many employee credit card issuers allow you to track individual spending online so that you can trace expenses back to each employee. These best practices can help you reduce your risk and prevent employee fraud. However, following these best practices won’t completely mitigate the potential for loss. Benefits & Drawbacks of Employee Credit Cards When used properly, employee credit cards can save your company time and money. They can even help you earn credit card rewards that you can put back into your firm or use to take a vacation. However, employee credit cards also have drawbacks, including the risk your employees will steal from you. Benefits of Employee Credit Cards Earn rewards: When you reimburse your employees’ expenses, they get to keep any rewards the business purchase earned; employee credit cards allow you to keep the rewards and use them as you see fit Monitor and control spending: Track and limit how employees spend company money with tools that set credit limits and allow you to see business spending in real-time, which is one reason to choose a business card vs personal card Save time: You’ll streamline your expense process by reducing or eliminating reimbursements and paying one bill for many of your business’s purchases Drawbacks of Employee Credit Cards Increasing your risk: In many cases, you personally are liable for any expenses placed on an authorized user credit card; if you have to make a personal guarantee you must place spending controls on individual cards Threatening your credit: If you can’t repay your company’s credit card debts, and you’ve made a personal guarantee, your business credit could be damaged; some small business credit cards even report to personal credit bureaus, meaning your personal credit also could take a hit Additional cardholder fees: Some credit card issuers charge additional fees for every cardholder you add to your account, which means additional expense for your company; make sure to only provide credit cards to your employees who have the frequent need to use them Employee Credit Card Frequently Asked Questions (FAQs) Deciding whether to issue an employee credit card may not always be an easy decision. You should know which type of employee credit card you want before submitting an application. However, there are other questions you should also ask. If we don’t answer your question in the FAQs below, leave a comment below, and we will provide an answer. Do company cards affect credit? It depends on the type of company card you choose. A small business credit card can affect both an owner's personal and business credit as you must make a personal guarantee to repay. A corporate credit card may affect your employees’ credit if you establish joint liability to repay between the company and the employee. How do company credit cards work? Businesses may issue employee credit cards to trusted workers who have responsibility for spending company funds. The authorized user credit card carries all of the same benefits and requirements as the master account card, meaning you’ll have to pay interest on carried balances, and employee card spending may earn rewards. Will my company credit card show up on my credit report? Your small business credit card will appear on your business credit, your personal credit, or both. If you are late or miss a payment, that could damage your credit. For employees who have been issued a corporate credit card, if you share liability with the business, the card could appear on your report. Bottom Line An employee credit card could help you better control your employees’ spending on behalf of the company. Use an employee credit card to monitor and restrict employees’ use of company funds. You’ll have to be vigilant, however, as some employee credit cards expose you to personal risk in case of employee theft or if you can’t make your card payments. Be sure to choose a card that offers rewards for your company’s spending. If your company regularly purchases office supplies, a card like the card might be a good choice. It offers 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on telecommunications services. Plus, employee credit cards are free.

TSA PreCheck memberships are valid for five years. You can renew TSA PreCheck up to six months before your Known Traveler Number (KTN) expires, which costs $85. Typically, TSA PreCheck renewal is simple, and you can complete it online in about 15 minutes. However, some members may need to provide updated information or new fingerprints. TSA PreCheck can save you time at the airport through its designated expedited Transportation Security Administration (TSA) security lines. Frequent travelers may be able to receive TSA PreCheck for free. Some credit cards, like the American Express Business Platinum Card®, offer application fee reimbursements every four and a half years. When to Start TSA PreCheck Renewal You can renew TSA PreCheck up to six months before your TSA PreCheck expiration date. If you renew TSA PreCheck early, your membership’s new expiration date will still be five years from your original expiration date. You can check your TSA PreCheck membership status online. Your KTN expiration date will be under the field marked “TSA Pre✓® Expiration Date.” You also can contact customer service at 855-347-8371 to request your KTN expiration date. If you receive TSA PreCheck benefits through a Global Entry membership, you can renew Global Entry up to one year in advance, compared to six months with TSA PreCheck. Your membership expiration date is shown on your Global Entry card. Global Entry members will also receive an email with information on their membership’s expiration date. How to Renew TSA PreCheck To complete your TSA PreCheck renewal, visit the TSA PreCheck enrollment website. You will need to provide your current KTN, date of birth, and last name to start the TSA PreCheck renewal process. After the four-step application process, you’ll be required to pay the $85 TSA PreCheck renewal fee and wait for your renewal confirmation. TSA may direct some members to renew their memberships in person to provide updated information or data, including new fingerprints. 1. Visit the TSA PreCheck Enrollment Website To begin the TSA PreCheck renewal process, visit the TSA PreCheck enrollment website. From the home page, you can start the TSA PreCheck renewal process by clicking on the green “Renewal” button. This will redirect you to the renewal form where you’ll provide your KTN, date of birth, and legal last name. 2. Complete the TSA PreCheck Renewal Form When you land on the renewal form page, you can work through the four-step TSA PreCheck renewal application. Start by providing your KTN, date of birth, and legal last name. If you don’t know your KTN, you can look it up on TSA’s website or the website you use to book your flights. Each step will ask for your personal information, and the form should take you about 10 or 15 minutes to complete. 3. Pay the $85 TSA PreCheck Renewal Fee After you complete the renewal form, TSA will ask you to pay the $85 TSA PreCheck renewal fee. You can use one of your credit cards to make an electronic payment by entering your card information online. Some personal credit cards offer TSA PreCheck application fee reimbursements if you want to avoid the renewal fee. Additionally, business owners also have the same opportunity, as some business credit cards also cover the application and renewal fee. 4. Wait for TSA PreCheck Renewal Confirmation After you’ve made your payment, you will need to wait for your TSA PreCheck renewal confirmation. Most often, you won’t need to provide any more information. However, some individuals may need to renew their membership in person. For example, TSA may request new fingerprints if the original fingerprints during the initial enrollment were low quality, or if an individual changed their name and hasn’t gone through TSA’s data update process. How to Renew TSA PreCheck for Free Some of the best travel credit cards offer TSA PreCheck application and renewal fee reimbursements. These credit cards typically provide reimbursement as a statement credit every four or four and a half years, which aligns with the five-year TSA PreCheck membership plan. If you want to avoid the $85 TSA PreCheck fee, consider a personal or small business credit card that offers this benefit. Here’s a glance at the best credit cards that offer free TSA Precheck renewal. Credit Cards That Offer Free TSA PreCheck Renewal Business Cards That Offer Free TSA PreCheck Renewal Whether you’re a consumer or if you own a business, you can get a credit card that covers your TSA PreCheck membership fee. Although not all credit card companies offer this additional card perk, some of the best credit cards on the market do. Compare the best credit cards to find one that provides TSA PreCheck application and renewal fee reimbursements. TSA PreCheck vs Global Entry Global Entry is a US Customs and Border Protection (CBP) program and offers international travel benefits. TSA PreCheck, on the other hand, is ideal for domestic travel and doesn’t offer benefits outside of the United States. Global Entry charges a $100 application fee contrary to TSA PreCheck’s $85 application fee. Both memberships are valid for five years. Global Entry offers expedited U.S. Customs screening for international travelers when entering the US in addition to all TSA PreCheck benefits. If you’re someone who travels outside of the US, you should consider applying for Global Entry. The application fee is $15 more than TSA PreCheck, but it includes TSA PreCheck benefits. You can complete a Global Entry application on the Trusted Traveler Programs website. TSA PreCheck vs Global Entry at a Glance How to Renew TSA PreCheck Through Global Entry If you receive TSA PreCheck benefits through a Global Entry membership, you’ll need to renew Global Entry through the US Department of Homeland Security’s Trusted Traveler Program portal. Through this portal, you will either need to log in using your existing account information or create a new account to start the renewal process. You can renew your Global Entry membership up to one year in advance of your membership’s expiration date. Follow these four steps for renewing TSA PreCheck benefits through Global Entry: Visit the Trusted Traveler Program portal: To renew Global Entry and your TSA PreCheck benefits, visit the Trust Traveler Program website. Log in or create a new account: From the home page, click the blue “Log In” button in the upper right-hand corner of the page. Log in with your login.gov account information. If you haven’t yet made a login.gov account, you can do that on this same page by clicking “Create an account.” Your old GOES username and password won’t work. Complete the short online application: Once you log in, you’ll be able to update any personal information and begin the renewal application. You’ll follow the same steps as the original Global Entry application. Provide payment for the $100 renewal fee: Once you finish the Global Entry renewal process, you will need to provide your payment information for the $100 fee. If you have a credit card that offers Global Entry application reimbursements, be sure to enter that card’s information. Once the CBP reviews your renewal request, you should receive an email notification that lets you know if you’ve either been approved or conditionally approved with an in-person interview requirement. If you’re conditionally approved, you’ll need to schedule an appointment for the in-person interview at a Global Entry office to finalize your renewal. Frequently Asked Questions (FAQs) About TSA PreCheck Renewal We covered a lot of information on the TSA PreCheck renewal process. Some questions are asked more often than others, and we address those here. How long does TSA PreCheck last? TSA PreCheck memberships are valid for five years, which is identical when compared to Global Entry. You can renew your TSA PreCheck up to six months in advance of your TSA PreCheck expiration date. TSA PreCheck gives domestic travelers access to designed expedited TSA airport security lines. How long does TSA PreCheck renewal take? In most cases, it takes about 15 minutes to complete the TSA PreCheck renewal process. However, it can take anywhere between a few days up to a few weeks to receive your approval confirmation. TSA says some members may need to schedule an in-person interview, which can extend the renewal process. How do I renew my TSA PreCheck With Global Entry? To renew TSA PreCheck with Global Entry, visit the US Department of Homeland Security’s Trusted Traveler Program portal. From there, log in to your account, update any personal information, and start the renewal application. Once you complete the application, you will need to provide your payment information for the $100 renewal fee. Bottom Line To renew TSA PreCheck, visit the TSA PreCheck enrollment website, complete the renewal form, and submit your payment information for the $85 renewal fee. You will receive confirmation of your renewal through the email associated with your account. If you want to avoid the renewal fee, some credit cards offer statement credits for the $85 TSA PreCheck fee, including the American Express Business Platinum Card®. Be sure to use that card when you pay on TSA’s website.

TSA PreCheck is a government program that gives low-risk travelers access to expedited Transportation Security Administration (TSA) security lines at more than 200 airports in the United States. You’ll pay a nonrefundable $85 TSA Precheck application fee ($100 for foreign residents), which is due every five years for renewal of your membership. TSA PreCheck can help frequent travelers save a ton of time at the airport. There are ways frequent travelers can receive these benefits for free. Some credit cards, such as Capital One® Spark® Miles for Business, offer application fee reimbursements every four years. What Is TSA PreCheck? TSA PreCheck is a government program that gives people recognized as low risk by the TSA the opportunity to use faster security lines at specific airports around the US. The program allows low-risk travelers to save time in security lines by leaving their shoes on or keeping their laptops in bags, for instance. It costs $85 to apply, which is nonrefundable if your application is rejected. You’ll be required to pay this fee if you want to renew your membership every five years. Additionally, after you apply, TSA requires an in-person interview and a background check at a nearby enrollment center. This interview takes about 10 minutes, and you’ll typically receive a decision within two to three weeks after your appointment. How TSA PreCheck Works This program was designed to speed up airport security checkpoints for verified, low-risk travelers. TSA PreCheck members will be able to access a designated expedited security line and have fewer requirements when passing through the security check. For example, passengers won’t be required to remove articles of clothing or personal items from themselves or their luggage. With this program, you won’t be required to remove: Accessories, such as watches or jewelry Articles of clothing, such as your shoes, belt, or light jacket Laptop and other electronics in your luggage Personal items in your luggage, such as your toiletries or 3-1-1 liquids (three ounce containers or smaller, one quart-size bag, and one bag per traveler) Over 200 airports offer this service, and you can apply directly through TSA’s website with a nonrefundable application fee of $85. Upon approval, you will receive a Known Traveler Number (KTN). You can use your KTN anytime you book a flight, which is valid for five years. Your KTN will give you access to the expedited TSA security lines at more than 200 airports with 73 participating airlines in the US. Who TSA PreCheck Is Right For TSA PreCheck is intended to speed up airport security checkpoints for verified travelers. People who spend a lot of their time traveling may find this program beneficial. Additionally, some credit cards offer application reimbursements. This means there may be an opportunity to gain access to this government program at no cost, depending on the card you have open. TSA PreCheck is right for: Frequent travelers: TSA PreCheck offers a designated line and an expedited security screening process. This can benefit those people who travel frequently and want to cut out waiting in long lines for standard airport security screening. People with credit cards that offer application reimbursements: Some personal credit cards offer application fee reimbursements. If you have a card that offers this benefit, it may be worth submitting the online application to receive a free membership. There are also business credit cards that offer this same perk if you own a business. This program helps reduce the amount of time you have to spend waiting to get through airport security, which may vary depending on your flight time and airport. If you become a member, you can typically have access to a designated expedited TSA security line. TSA PreCheck Costs TSA PreCheck requires a nonrefundable $85 application fee ($100 for foreign residents). This means you won’t get your money back if your application is rejected. If you’re approved, your membership will last for five years. At the end of the five years, you’ll be required to renew TSA PreCheck for $85. However, there are dozens of personal credit cards that may reimburse you for your membership application fee. Additionally, these credit cards often offer application fee reimbursements for Global Entry, another Trusted Traveler program. Trusted traveler programs are risk-based programs to facilitate the entry of pre-approved travelers. If your card offers this perk, you’ll be able to choose which program you want to apply for. TSA PreCheck is ideal for domestic travel and Global Entry is ideal for international travel. You’ll also receive TSA PreCheck benefits through Global Entry. TSA PreCheck Airport Locations TSA PreCheck is at more than 200 US airports, including Los Angeles International Airport (LAX) and John F. Kennedy International Airport (JFK), two of the 15 busiest US airports. This is a US-only program, which means you won’t have access to expedited airport security lines if you’re at an airport outside the US. To see if your preferred airport offers this program, view the TSA PreCheck map. Airlines That Offer TSA PreCheck In addition to the airports that offer this Trusted Traveler program, there are 73 participating airlines. These include most major airlines, such as Alaska Airlines, American Airlines, Delta Air Lines, Hawaiian Airlines, JetBlue Airways, Southwest Airlines, and United Airlines. TSA PreCheck Eligibility US citizens are eligible for TSA PreCheck. Additionally, any foreign resident who has become a Lawful Permanent Resident (LPR) of the US is also eligible for membership. Upon application, TSA requires you to visit an enrollment center for an in-person interview and background check where you’ll need to provide your fingerprints and Social Security number (SSN). You’re eligible to use this program for all participating airlines once you receive your Known Traveler Number (KTN) upon approval. TSA PreCheck Disqualify Offense Factors TSA also provides a list of disqualifying offenses and other factors, which permanently ban applicants from receiving a membership. These factors include espionage, sedition, treason, federal crimes of terrorism, improper transportation of hazardous material, and unlawful possession of explosives or explosive devices. TSA also can disqualify applicants if they have been convicted, plead guilty to (including “no contest”), or found not guilty by reason of insanity to numerous types of felonies within seven years of the application date. Additionally, if the applicant was released from incarceration after conviction within five years of the application date they will be denied. These crimes include unlawful possession of firearms, extortion, fraud, money laundering, bribery, smuggling, arson, immigration violations, and rape. How to Get TSA PreCheck To apply for this program, you’ll be required to fill out an application through TSA’s website, which includes information like citizenship, address, and date of birth. You’ll have to make an appointment for an in-person interview where you’ll bring a valid photo ID, proof of citizenship, and immigration documentation (if applicable). You’ll receive a decision within two to three weeks of your in-person interview. You can check your application status online. Follow these five steps to get TSA PreCheck: 1. Visit the TSA PreCheck Website To begin your application process and apply online, visit the TSA PreCheck website. From the homepage, click the red “Apply Now” button. This will redirect you to the first page of the online application, which requires you to provide your biographical information like your name and date of birth. 2. Complete the Online TSA PreCheck Application Begin to work your way through the four-step application process. Each step is simple, and the entire application typically takes no more than 15 minutes to complete, as long as you have all the necessary information ready. This includes information like citizenship, address, and date of birth. In the last step of the application process, you’ll be asked to choose an appointment for your in-person interview. 3. Schedule Your In-person Interview and Background Check The final step of the online application requires you to find a nearby enrollment center and schedule an in-person interview. Enrollment centers are typically located at major US airports, AAA offices, or at other facilities in your city. Once you’ve found your enrollment center, click on the address and then click the white “Next” button in the bottom right of your screen. This will redirect you to a new page where you can select your specific appointment date and time. 4. In-person Interview Prepare for your in-person interview by gathering the required documents. During the application process, TSA asks you to choose two forms of identification that you can bring to your in-person interview. For example, you can bring a valid driver’s license and passport. If necessary, you’ll also need to bring immigration documents, too. Lastly, you will need to bring a personal or small business credit card to pay the $85 application fee. 5. Use the TSA PreCheck Benefits Once approved, TSA will notify you and distribute your Known Traveler Number (KTN). You can use your KTN every time you book a flight. Additionally, you can add your KTN to your frequent flyer accounts so it automatically includes the global number in your flight itineraries. The next time you visit an airport, you’ll be able to take advantage of the program’s benefits. How to Get TSA PreCheck for Free Sometimes travelers will randomly receive TSA PreCheck access when they check-in for their flights and receive their boarding pass. However, this is not guaranteed and only gives you one-time access on the day of your specific flight. Additionally, some credit cards and loyalty programs may reimburse you for all or a portion of your $85 application fee. These cards also offer reimbursements for Global Entry application fees, which are $100. Global Entry also includes TSA PreCheck benefits. Here’s a glance at the best credit cards that offer free TSA Precheck: Best Credit Cards That Offer Free TSA PreCheck Business Credit Cards That Offer Free TSA PreCheck TSA PreCheck vs Other Trusted Traveler Programs In addition to this program, Global Entry, SENTRI, and NEXUS make up the other Trusted Traveler programs. These Trusted Traveler programs may also give you access to TSA PreCheck in addition to the program’s specific benefits, as long as you use your membership number as your Known Traveler Number (KTN) when booking a flight. You can also apply for CLEAR—which isn’t a Trusted Traveler program—but does get you to the front of the general TSA line. TSA PreCheck vs Global Entry Global Entry is a US Customs and Border Protection (CBP) program. This program includes TSA PreCheck benefits plus expedited US customs screening for international travelers when entering the US. It costs $100 to apply—compared to TSA PreCheck’s $85 fee—and requires a similar in-person interview. Your membership is valid for five years. If you frequently travel outside of the US, Global Entry may be the best bang for your buck. With an application fee of $100—only $15 more than TSA PreCheck—you’ll receive TSA PreCheck benefits and expedited US customs screening. You can apply for Global Entry and TSA PreCheck benefits through the Trusted Traveler programs’ website. TSA PreCheck vs SENTRI Secure Electronic Network for Travelers Rapid Inspection (SENTRI) is meant for people who frequently travel from Mexico into the US or Canada into the US via air and land. SENTRI gives travelers access to an expedited process with the CBP when entering the US and you may also receive TSA PreCheck benefits. It costs $122.50 to apply, and the membership is valid for five years. You can apply for SENTRI through the Trusted Traveler programs’ website. TSA PreCheck vs NEXUS NEXUS is another CBP program that is designed for people who frequently travel between Canada and the U.S. NEXUS offers expedited clearance upon arrival in the U.S. from Canada via land, air, and sea. It costs $50 to apply and an in-person interview is required. Upon approval, the NEXUS membership is valid for five years. You can apply for NEXUS through the Trusted Traveler programs’ website. TSA PreCheck vs CLEAR CLEAR is not a Trusted Traveler program, however, it’s designed to get travelers through general TSA security faster and easier. For $179 per year, CLEAR lets you skip the TSA line and uses biometric data (fingerprints and eye scans) to identify you. However, after it verifies your identity, a representative will take you to the front of the regular TSA security line. If you want to receive an expedited security process in addition to skipping the general TSA line, you also need a TSA PreCheck or Global Entry membership. Unlike TSA PreCheck—which is available in more than 200 airports—CLEAR is only available at about 35 airport locations in the US. You can enroll on CLEAR’s website. TSA PreCheck Benefits and Disadvantages There are several TSA PreCheck advantages, but the most beneficial is access to designated expedited airport security lines. Additionally, you can receive these services at more than 200 U.S. airports for five years. However, it’s important to note that TSA PreCheck benefits don’t cover international travel. If you travel outside the US, consider applying for Global Entry. TSA PreCheck Benefits TSA PreCheck benefits are: Designated expedited airport security lines: It gives you access to designated expedited TSA security lines. Additionally, there are fewer requirements—you won’t have to remove your shoes or your laptop from your bag—when going through airport security because you’re pre-approved as a low-risk traveler. Available at more than 200 airports: This expedited security program is available at more than 200 airports in the US, including 15 of the busiest airports in the country. Visit the TSA website to see if your airport offers this program. Your membership lasts up to five years: It costs $85 to apply for this expedited security screening program. However, if you’re approved, your membership is valid for five years. A renewal fee of $85 will be due after your membership expires. TSA PreCheck Disadvantages TSA PreCheck disadvantages are: Nonrefundable application fee: There is an application fee of $85 and you won’t receive a refund if you’re rejected. If you want to avoid the application fee, some credit card companies may reimburse you for the application fee. Doesn’t cover international travel: This program does not include international travel. If you travel outside of the US, consider Global Entry. Global Entry gives travelers access to expedited customs and immigration lines plus all TSA PreCheck advantages. It costs $100 to apply for Global Entry, which some credit cards may also cover. Application requires an in-person interview: Although you can complete your application online, you will need to visit a nearby enrollment center for an in-person interview and background check. TSA PreCheck Tips Applying for this program is quick, however, it may take some time to schedule your in-person interview and receive a decision. It’s best to plan ahead, apply in advance, and choose an enrollment center near you. If you’re approved, your membership will be valid for five years. You can renew it every five years for $85 or get a credit card that offers application fee reimbursements. The best TSA PreCheck tips are: Plan ahead and apply in advance: The online application is quick and easy—it should only take about 15 minutes to complete. However, it may take more time to find an in-person interview appointment and hear back on your application. Be sure to apply in advance to ensure you’ll receive the benefits for the next time you travel. Look for an enrollment center near you: In the past, you had to visit a participating airport for your in-person interview. However, you can now visit a variety of enrollment centers for your in-person interview. Check for the nearest enrollment center through TSA’s website. Renew every five years: Once you’re approved, you will receive TSA PreCheck benefits for five years. Once your membership expires, you can renew it for the same application fee of $85. Get a credit card that covers the application fee: If you want to avoid the application fee, open a credit card that offers to pay for the program’s application fee. Most credit cards that offer reimbursements, do so every 4.5 years, which aligns with the program’s five-year membership. It’s crucial to follow the best program practices to ensure you can receive the benefits in time for your next travel dates. Additionally, if you spend some time looking for credit cards that offer reimbursements, you can receive a free membership. Frequently Asked Questions (FAQs) About TSA PreCheck We covered a lot of information on this expedited security screening program. Some questions are asked more often than others, and we address those here. The most frequently asked questions about this TSA program are: How long does it take to get TSA PreCheck? Most often, it typically takes two to three weeks to receive a decision on your TSA PreCheck application. Although the online TSA PreCheck application is quick and simple, it takes time for TSA to process your background check and information. TSA will notify you whether you’ve been approved or rejected for the program. What does TSA stand for? TSA stands for Transportation Security Administration, which is a part of the US Department of Homeland Security. It serves to facilitate the security of public travel in the US and was formed in response to the attacks of Sept. 11, 2001 in New York City and Washington, D.C. TSA employs people to monitor safety at airports. What is the difference between TSA PreCheck and Global Entry? TSA Precheck is ideal for domestic travel and Global Entry is best for international travel. TSA PreCheck offers an expedited security screening process for flights leaving from US airports. Global Entry, on the other hand, offers TSA Precheck benefits in addition to expedited US customs screening for international travelers entering the US. Bottom Line With TSA PreCheck, you’ll have the ability to arrive at the airport and access a designated TSA security screening line. With this program, you won’t have to remove your shoes, laptop, or personal items from your bag when you go through airport security. It costs $85 to apply and you can complete the application online in about 15 minutes. Some travelers may have the opportunity to avoid the $85 application fee. For instance, some credit cards, like Capital One® Spark® Miles for Business, offer application fee reimbursements every four years. You can apply online in a matter of minutes.

You can request a U.S. Bank credit limit increase online or by calling customer support. Alternatively, you can apply for a new credit card to increase your total available credit. Either way, you’ll typically need a personal credit score of at least 680, a credit utilization ratio below 30%, and a good payment history. Often, the easiest way to get additional credit is to get a new credit card. Similar to requesting a credit limit increase, applying for a new card could have a short-term impact on your credit score. Through our Credit Card Marketplace, you can shop and compare the best credit cards on the market. 3 Ways to Request a U.S. Bank Credit Limit Increase Typically, your credit card account needs to have been open for at least six months before you can increase your credit limit. You can request a U.S. Bank credit limit increase through your online account or by calling customer service. Alternatively, you can also apply for a new credit card to increase your overall credit instead of requesting an increase on an existing card. 1. Request a U.S. Bank Credit Limit Increase Online If you want to request a U.S. Bank credit limit increase, it’s as easy as logging into your . U.S. Bank requires you to fill out a basic application, which includes your personal information, income, source of income, and monthly housing payment. If you’re a business owner, you’ll need to provide your business and personal information, income, and monthly credit card expenses. To request a credit limit increase with U.S. Bank online: Log in to your online account Select the “Customer Service” tab Click “Self Service” Click “Manage Your Account” under the credit card section Click the link for “Credit Limit Increase” Enter your income, source of income, and monthly housing payment When U.S. Bank is determining your new credit limit, it takes into account your level of debt compared to your financial resources. U.S. Bank also looks at a variety of factors that make up your overall credit profile, including your payment history with U.S. Bank, reported income, and credit reports and scores. 2. Request a U.S. Bank Credit Limit Increase By Phone You can also request a U.S. Bank credit limit increase by calling with the number on the back of your card or by dialing 800-285-8585. U.S. Bank customer support will also likely ask for your personal information, income, source of income, and monthly housing payment. If you have a Visa Signature®, World MasterCard® or a FlexPerks® Travel Rewards American Express® Card, you don’t have a traditional credit limit and will need to call customer support to increase your credit line. Additionally, if you have a U.S. Bank secured credit card then you must submit a written request with a cashier’s check or money order payable to cardmember service. 3. Apply for a New U.S. Bank Card Alternatively, you can also choose to apply for a new U.S. Bank credit card to get additional credit instead of requesting a U.S. Bank credit limit increase. Moreover, you also have the flexibility to apply for a credit card through another issuer. Applying for a new card altogether gives you the chance to find a card that offers better terms and higher limits. Apply for a High Credit Limit Business Credit Card If you’re a small business owner, you can also choose to apply for a high limit business credit card. These types of business credit cards are great for putting large purchases and daily expenses on one card. Additionally, some of the best high limit credit cards also offer introductory bonuses and ongoing rewards. We recommend having a personal credit score of at least 670 to get a business credit card. If you can afford to pay off your entire balance monthly, a business charge card would be another excellent card option. Business charge cards are required to be paid off in full every month and usually have no preset spending limit. This means you won’t have to worry about reaching your limit when making large business-related purchases. Tips for Qualifying for a U.S. Bank Credit Limit Increase If you’re getting ready to request a U.S. Bank credit limit increase, it’s crucial to follow some common credit limit increase tips. You should avoid misusing your credit card, maintain a credit utilization ratio below 30%, and keep your debt-to-income ratio below 40%. Additionally, it’s vital to know your credit score and check it often. Avoid Misusing Your Credit Card It’s especially important to use your credit card responsibly if you want to receive a U.S. Bank credit limit increase. Credit card providers, such as U.S. Bank, evaluate your credit card usage when considering increasing your limit. The issuer will more likely approve you if you manage your debt responsibly and have a good personal credit history. Some of the best credit card usage practices are: Pay your credit card bills on time Avoid carrying a balance Keep your credit utilization ratio below 30% By following responsible credit card practices, you can increase your chances of qualifying for a U.S. Bank credit line increase. Additionally, these practices can also help you maintain a good personal credit score. Maintain a Credit Utilization Ratio Below 30% Providers, such as U.S. Bank, typically look at your credit utilization ratio to evaluate how much of your total available credit you’re using. You can calculate your ratio by dividing your total credit card balance by your total available credit or use a credit utilization calculator. Ideally, it’s best to maintain a credit utilization ratio below 30% and greater than 0%. Some of the best ways to maintain a low credit utilization ratio are: Avoid late payments Leave old credit card accounts open to avoid losing total available credit Make multiple credit card payments per month Create balance alerts through your account Your credit utilization ratio will decrease if you’re approved for a U.S. Bank credit line increase or a new credit card. It’s always a good idea to keep your credit utilization below 30% even if you’re not requesting a credit limit increase. Your credit utilization is one of the key factors in calculating your credit score. Keep Your Debt-to-income Ratio Below 40% U.S. Bank and other credit issuers may look at your debt-to-income (DTI) ratio to confirm that you will be able to afford to pay a higher credit card bill. Your DTI ratio is a measure of the percentage of your monthly debt obligations to your monthly gross income. Typically, banks and credit issuers like to see DTI ratios below 40%. The lower your DTI ratio, the more likely U.S. Bank will approve a credit limit increase. Some of the best ways to maintain a low DTI ratio are: Pay off existing debt Avoid taking on more debt Negotiate a higher salary to increase your income Use a balance transfer credit card to lower interest rates Paying down existing debt can be difficult if you’re also accruing interest. However, balance transfer credit cards provide an interest-free financing period that can help you pay off your balance. The best balance transfer credit cards offer an introductory no-interest period on balance transfers for up to 12 months. Because you won’t have to keep up with interest for that interest-free period, you can pay your balance off quicker. Know Your Credit Standing One of the best ways to receive a U.S. Bank credit line increase is by maintaining a good to excellent personal credit score of at least 680. Credit card providers are more likely to approve a credit limit increase if you’re in good credit standing. Personal credit scores range from 300 to 850 and FICO’s business LiquidCredit score ranges from 0 to 300. When you check your own credit score, it will only count a soft credit check. Soft credit checks don’t impact your credit score and are never visible to other creditors. Conversely, hard credit checks usually ding your credit score by one to five points. Check your credit scores once every quarter because they frequently change based on your recent payment history, DTI ratio, and credit utilization ratio. How to Check Personal and Business Credit Scores You can check your personal credit score online through a handful of credit card issuers without having to pay a fee. If you also are self-employed or own a business, you should check both your personal and business credit scores. Often, these scores may be tied together. You can check your business credit score for free through . If you’re checking your personal credit score, you will need to provide your name, address, date of birth, and Social Security number. If you’re also checking your business credit score, you will be required to provide your personal information, name of your company, business address, and employee identification number (EIN). When You Should Request a U.S. Bank Credit Line Increase U.S. Bank and other credit card providers require you to have an active account for at least six months before requesting a credit limit increase. Additionally, it’s best to request a U.S. Bank credit line increase when you earn a higher income, your rent or mortgage decreases, and when your credit scores increase. You should request a credit line increase with U.S. Bank: After you’ve had your account for six months: U.S. Bank, along with most providers, typically requires you to have your account for at least six months before requesting a credit limit increase. If you need access to additional credit before then, it may be best to get a new credit card. When your monthly income has increased: If you're bringing in more money, you may be able to afford to pay a higher credit card bill every month. The best time to increase your credit limit is when you’ve started to bring in a higher income. If your rent or mortgage decreases: If your monthly housing payment decreases, this will reduce your debt-to-income (DTI) ratio. Typically, a lower DTI shows you can take on more debt obligations, including a credit limit increase. When your credit score increases: U.S. Bank and other providers will evaluate your personal credit score when considering you for a credit limit increase. If your credit score increases, this usually shows you manage your debt obligations responsibly. Before requesting a U.S. Bank credit line increase, make sure you can handle taking on more debt. That means being able to pay a large balance down and avoid overspending now that you have a higher credit limit. If you own a business, you should consider these situations and also evaluate your working capital before requesting a credit limit increase. When Business Owners Should Request a U.S. Bank Credit Line Increase Before requesting a U.S. Bank credit line increase, business owners should evaluate their specific business situation. Business owners should request a credit limit increase when they have inventory growth, increased revenue, increased time in business, and when their credit scores have increased. Alternatively, business owners can also apply for a high limit business credit card. These cards are best for businesses with monthly credit card expenses between $15,000 and $100,000. You can shop and compare the best business charge cards in our Credit Card Marketplace. What to Do If You're Denied a U.S. Bank Credit Line Increase If you’re denied a U.S. Bank credit line increase, you should resolve any specific denial issues, pay off more debt, review your credit report for errors, or apply for a new credit card through another provider. Some actions you can take if your credit limit increase request is denied are: Resolve any issues in your denial letter: If you’re denied a credit limit increase, you will receive a denial letter in the mail usually between seven to 10 days. It’s important to review this letter and resolve any denial issues. Pay off debt obligations: Pay down any existing debt to improve your DTI ratio and credit utilization ratio. This will make an approval more likely the next time you request an increase. Review your credit report for any errors: Consumers are entitled to one free personal credit report every year through Annual Credit Report. Order your credit report and review it for any errors. If you find errors, you can submit a dispute with your issuer. Get a new credit card: If you want a new credit card altogether, you have the flexibility of applying through your current provider or choosing a new provider. If you’re denied a credit limit increase, that doesn’t mean you’re totally out of luck. By following these actions, you can prepare and set yourself up for a future credit limit increase request. How a U.S. Bank Credit Limit Increase Impacts Credit Scores Increasing your credit limit with U.S. Bank can lower your credit utilization ratio and improve your credit score. Typically, U.S. Bank will run a hard credit check, which may temporarily drop your credit score between one to five points. However, hard credit inquiries won’t negatively impact business credit scores. Personal Credit Score Besides your payment history, your credit utilization ratio is the second most important factor that makes up your credit score. Your overall credit utilization ratio will decrease after a credit limit increase. Typically, this will have a positive impact on your credit score, and you will see it increase. However, U.S. Bank may run a hard credit check, which can ding your credit score by one to five points. Hard credit inquiries only impact your credit score for one year but will be visible by other creditors on your credit report for two years. Business Credit Score Much like personal credit scores, you can improve your business credit score by increasing your business credit card limit and reducing your credit utilization ratio. Compared to personal credit scores, hard credit inquiries don’t impact business credit scores. Anyone can pull your business credit report if they have your business’s name and address. With that being said, hard credit inquiries generally don’t hurt your credit score because it’s easier for someone to run your credit. Frequently Asked Questions (FAQs) About U.S. Bank Credit Limit Increases We covered a lot of steps on how to request a U.S. Bank credit limit increase. Some questions are asked more often than others, and we address those here. How do I request a credit limit increase with U.S. Bank? You can request a credit limit increase with U.S. Bank by logging into your online banking account or over the phone. U.S. Bank will require you to submit an application including your personal information, income, source of income, and estimated monthly housing payment. If your request is approved, your limit will reflect on your account. Does U.S. Bank automatically increase your credit limit? U.S. Bank and other providers may review your account after six months and automatically increase your credit limit. If you don’t receive an automatic increase, you can request a credit limit increase online or by phone. You can also decrease your credit limit by calling U.S. Bank’s customer service phone number. How can I get a higher credit limit? To get a higher credit limit, choose one of the credit cards that you want to have the limit increased on. Most providers allow you to request your credit limit increase online. When you submit your request, your provider will review your credit standing to make sure you can handle taking on more debt obligations. Bottom Line You can request U.S. Bank credit limit increase through your online account or by calling customer support. You’ll be required to provide your personal information, income, source of income, and monthly housing payment. Alternatively, you can also opt to apply for a new credit card with a higher limit. If you’d rather apply for a credit card with a higher credit limit, visit our Credit Card Marketplace. You can shop and compare the best credit cards on the market and find a card with the most favorable terms.

A corporate credit card policy explains the usage, eligibility, and requirements of a company credit card. Corporate credit card policies are internal agreements between an employer and its employees, and it outlines the acceptable and unacceptable use of corporate credit cards. Such policies define expectations related to card repayment, expense reimbursement, liability, and credit limits. If you are in need of a corporate credit card policy for your business, check out . It’s an online legal service provider that offers you custom legal documents after answering just a few questions. The site also offers additional legal assistance if needed. Get started today. What a Corporate Credit Card Policy Is A corporate credit card policy is a document that outlines the rules and regulations internal stakeholders must follow when they use a corporate credit card for business-related expenses. Corporate credit card policies set expectations in relation to eligibility, financial responsibilities, expense reporting, card spend limits, disputes, and ownership of a corporate credit card. While you could create a corporate credit card policy from scratch, companies such as provide policy templates that help your business take advantage of an effective corporate credit card policy. The templates are customizable to your specific needs and take care of the legal jargon. Why a Corporate Credit Card Policy Is Important A corporate credit card policy is important for companies with a corporate credit card account. You control spending limits for each card, which allows you to protect your business while also providing employees a handy way to pay for company expenses. Such policies are important when employees will be using a form of business financing. Four ways a corporate credit card policy is important are it: Documents the rules and regulations surrounding corporate credit card usage: A corporate credit card policy outlines the procedures followed by all internal stakeholders, which include both the employees as well as the employer. Defines cardholder liability and responsibility: Depending on the card and issuer, liability is either held by the company or jointly by the company and the cardholder. This means either the company or cardholder is responsible for payments, fees, and disputes. Outlining liability issues protects the company and sets usage expectations. Helps businesses save money: Credit limits, for example, are outlined in the policy, along with the consequences of breaching those limits. Corporate credit card policies can contain frequency limits, monthly spend limits, and limits on expense categories. Such policies are important when employees are using a form of business financing. Creates expense reporting and reimbursement efficiencies: Expense policies need to be clearly defined, and a good corporate credit card policy can do that. It’s important to follow expense report procedures to ensure business expenses efficiencies. Overall, corporate credit card policies help businesses establish expectations and rules for employees to follow when they use a corporate credit card. It's easy to miss some of the details, which is why it can be helpful to start from a template, such as one provided by . However, you can also do it on your own. Just make sure to follow our corporate credit card policy checklist so you don't miss the details. Checklist for Creating a Corporate Credit Card Policy Overall, your internal business credit card policy is unique to your business. To create a corporate credit card policy, you’ll need to set a policy start date, identify your card types, determine who’s eligible, set spend limits, establish expense reporting expectations, name any consequences of a policy breach, and define who’s responsible for the policy. You can follow the checklist items below or download the checklist as a PDF. Seven important checklist items to follow when creating a corporate credit card policy are: 1. Set Corporate Credit Card Policy Start Date All corporate credit card policies should have a start date. This ensures that everyone knows when new policies take effect and it mitigates confusion. An effective start date also grants employees leeway for credit card usage prior to the date. 2. Identify the Type of Corporate Card You Own Corporate credit cards come in two types: company payment cards and individual payment cards. The card type dictates cardholder liability as well as expense reimbursement, if any. Understanding the card-specific requirements helps you create a better corporate credit card policy. 3. Determine Who's Eligible for a Corporate Credit Card Corporate credit card policies outline the types of employees who are eligible for a corporate credit card. Some companies, for example, only issue corporate credit cards to full-time employees. Other companies limit corporate credit cards to specific departments, such as sales. Further, you’ll want to know how to issue corporate credit cards. Your business might automatically issue cards to eligible employees. Conversely, it might require employees to submit an application for approval. Applications are for internal use only and aren’t reflected on a person’s credit report. 4. Set Corporate Credit Card Spending Limits You can limit corporate credit card spending based on a variety of factors. Frequency limits, monthly spend caps, and limits on individual expenses can all be implemented. It’s important that you get clear on any and all card limits and then detail that information in your corporate credit card policy. You’ll want to outline monthly spending limits, expense-specific limits, as well as frequency limits, if any. Further, you can require different limits for different cardholders, and if so, you’ll want to include it in your policy. Senior leaders, for example, might have higher monthly limits than a company’s sales staff. If this is the case, you may want to put together a policy for how exceptions to the approved spending limits are approved. 5. Establish Expense Report Expectations With Employees Some companies require expense reports for individual and company cards. For individual cards, a bill is sent to each cardholder. Employees typically submit an expense report with their bill attached. Once approved, the bill is paid on behalf of the employee. On company cards, one bill is sent to the company with information for all cards. The company pays the bill before any expense reports are submitted, but cardholders are still expected to submit reports. If either of these is the case, you’ll want to outline your expense report policies and procedures, such as required receipts, the approval process, and more. For information on expense reporting policies, check out our article on expense reports. One easy way to avoid the hassle of employee-submitted expense reports is to use prepaid business cards from a service like . You control spending limits and spending categories, and expense reports are all stored in one convenient place for you to access in seconds. Bento even syncs with most popular bookkeeping software and offers a 60-day free trial. 6. Name the Consequences for a Corporate Credit Card Policy Breach If your employee breaches any provision of your corporate credit card policy, it’s important to have clear consequences already identified. Smaller infractions, such as a salesperson overspending on a client, might result in the temporary suspension of his or her corporate credit card. Larger issues, however, such as fraud, can result in the termination of an employee. 7. Define Who's Responsible for the Policy Finally, clearly define the person or employee who enforces your corporate credit card policy. This person will be responsible for such things as credit card repayment, expense report approval, as well as any disciplinary actions as a result of credit card misuse. Typically, the chief operations officer (COO) or chief financial officer (CFO) of a company takes ownership of a corporate credit card policy. However, business owners, CEOs, and other senior leaders are also known to enforce corporate credit card policies. After you’ve read through the company credit card policy checklist item, your next step is determining if you will create a policy on your own or use a . A company credit card policy template can save you time and ensure you cover all the bases. Corporate Credit Card Policy Template While you can create your own policy from scratch, using a template helps you with legal language and jargon. If want to create your own corporate credit card policy, the next section walks you through the important elements to include. However, to get started right away, offers a policy template for $20 that is completely customizable to your needs. Rocket Lawyer customizes the template by asking you a series of business-related questions. You’ll need to know such things as your business location, corporate credit card account type, your plan administrator, eligible employees, as well as desired credit limits. The corporate credit card policy template adjusts its sections and verbiage based on the answers you give. It’s possible to skip any questions you don’t know and provide the information at a later date. If this is the case, the document displays blank lines; updates are made when the outstanding information is provided. The template can be used for both types of corporate credit cards (company payment cards and individual payment cards). Once you've reviewed the checklist, made a decision on all of those items, and determined if you're going to use a template, your next step is making sure all the key elements are incorporated in your corporate credit card policy. Incorporate all the Corporate Credit Card Policy Elements Corporate credit card policies vary depending on the business. However, the seven key items you need to include in a corporate credit card policy include eligibility and approval, use and financial responsibilities, receipts and expense reports, spending limits, violations and consequences, disputes, and ownership and cancellation of credit cards. Seven important elements that you should incorporate in your company credit card policy are: 1. Eligibility & Approval This is normally the first section of a company credit card policy. The eligibility and approval section outlines the types of employees who are eligible for a corporate credit card. For example, some companies may only allow salespeople to carry corporate credit cards. Second, this section describes the approval process for issuing new cards. Businesses can either issue cards directly to employees or have their employees apply for a corporate credit card. Company payment cards are normally issued directly while individual payment cards require an application. 2. Use & Financial Responsibilities This section of a company credit card policy outlines the allowable expenses charged to a corporate credit card. Oftentimes companies will denote here that the card is for “approved business expenses only.” Further, this section outlines the general procedure for credit card repayment. If a company is responsible for paying the bill, it’ll be noted here. Conversely, if employees have to submit expense reports for repayment, it’ll be noted here instead. 3. Receipts & Expense Reports This section of a company credit card policy is only applicable if you require employee-submitted expense reports. If the company pays the overall credit card bill and doesn’t require expense reporting, it’s outlined in the above section of the policy and this section is omitted. However, if a business requires expense reports, this section of the policy outlines the procedure for expense reimbursement. Such things as required receipts, the due date of expense reports, as well as the dates for approval and reimbursement are included here. Expense reporting is a good idea because it helps keep cardholders accountable for their spending. 4. Credit Spending Limits The credit spending limits section of a company credit card policy is fairly self-explanatory. It’s here that any spending limits are clearly defined. Limits can include such items as frequency limits, monthly credit limits, limits on specific expense categories, and more. You’ll want to include limits for travel, entertainment, office equipment, and anything else here. If you go with a prepaid credit card, like , you just preload each employee's card with a preferred spending limit and you’re done. Try it free for 60 days with two free cards and no setup fees. 5. Credit Card Violations & Consequences This section of a company credit card policy defines all potential violations as well as the associated consequences. Some credit card violations include cash advances, personal expenses, erroneous expense reports, and more. You can also include violations and consequences for exceeding the spending limits outlined in the previous section. 6. Disputed Items The disputed items section of the company credit card policy addresses the potential for erroneous charges on an employee's corporate credit card. It’s common for businesses to hold their employees responsible for clearing up any disputed charges, returns, or adjustments on their cards. 7. Ownership & Cancellation of Credit Card This section outlines cardholder liability. It’s important that your company credit card policy clearly defines who is responsible for credit card payments and lost cards. This section typically includes the company’s right to cancel or suspend corporate credit cards as needed. Issuer-Specific Policy Requirements to Consider Corporate credit card issuers have specific terms and conditions to consider when creating your corporate credit card policy. For example, the cards provided by an issuer have specific payment terms, credit limits, and liability, all outlined by the credit card company. Regardless of whether you use or create your own policy, you’ll want to include these items in your final company credit card policy. Three issuer-specific company credit card policy requirements to consider are: 1. Payment Terms Payment terms are an important component of a corporate credit card policy. The specific terms outlined by the card issuer dictates the policies you create around card repayment. For example, many corporate credit cards allow you to carry a balance, while some corporate credit cards don’t allow for a carry-forward balance. Further, a card’s APR and minimum payments should be taken into account when creating your corporate credit card policy. Your corporate credit card may allow you to carry a balance, for example, but if the APR is too high, you might want to create a policy requiring monthly balances to be paid in full. Card issuers also outline responsible parties when it comes to the fees assessed on late payments. Individual payments cards, for example, hold the cardholder responsible for these fees. It’s important that you include this information in your corporate credit card policy. 2. Credit Limits Card issuers may put a limit on your corporate credit card account. If this is the case, it’s important that you know the corporate limits placed on your account. It’s possible for these limits to be either an overall corporate credit limit or a card-specific limit. Issuer-imposed credit limits will, of course, alter the policies you create around credit spending limits. If your overall corporate limit is $50,000 per month, for example, you’ll want to ensure there are enough limits to stop your company from overdrawing each month. 3. Liability Card issuers are specific about the liability of cardholders. If you have a company payment card, your business is responsible for all credit card payments and your employees aren’t liable. If you have an individual payment card, on the other hand, your card issuer will either hold the company liable or the company and the cardholder jointly liable. Therefore, it’s important to understand how your card issuer assesses liability on your corporate credit cards. This will help you accurately define credit card liability—as well as the associated consequences—in your corporate credit card policy. Example of a Real Corporate Credit Card Policy Patrick West, founder of Be The Machine, an experiential marketing agency based in NYC and Ft. Lauderdale, reports having a corporate credit card bill between $65,000 and $100,000 each month. Be The Machine isn’t sparse with corporate credit cards. In fact, each employee is given a corporate credit card without a monthly credit limit. West relies on his employees to “manage up” and make the correct purchasing decisions on behalf of the company. In an interview with Fit Small Business, West said: “My business requires employees to make fast decisions. It gives them the freedom and empowerment to act properly. I don’t have a fear of abuse or theft or improper spending; I do have a fear of systems, controls, and impediments.” — Patrick West, Founder of Be The Machine Specifically, Be The Machine’s credit card policy helps guide its employees by requiring: All employees to submit monthly expense reports for guidance and oversight All expenses on an expense report to include a matching receipt All expenses to be coded to a specific client project for operating expense tracking All reports to be completed within 30 days of the monthly credit card bill All business-related expenses to be reimbursed to the employee by the company Corporate credit card policies don’t have to be this liberal. Still, West’s liberal spending policy that is offset with good expense reporting controls shows you just how customizable a corporate credit card policy can be. Overall, West says that with a business credit card rather than another form of short-term financing, it's essential that you have something in place, regardless of how strict it is. West goes on to point out that credit card companies have improved online tracking systems that help him check corporate transactions and summaries. Further, new credit card apps make the scanning and coding of receipts much easier. Benefits of a Corporate Credit Card Policy Implementing a corporate credit card policy can mitigate any risks related to misuse or violation of a corporate credit card. A corporate credit card policy has several benefits, including documenting any rules and regulations, outlining procedures for internal stakeholders, and defining cardholder liability and responsibility. The benefits of a corporate credit card policy are: Clearly documents rules and regulations: With a corporate credit card policy, your business can outline guidelines that dictate activities or transactions where the corporate card should be used. For example, you have the ability to set expectations for spending limits. Outlines the procedures followed by internal stakeholders: Your business’ corporate credit card policy outlines how employees and staff must go about using the corporate card. For example, some procedures include submitting monthly expense reports, and that all expenses need a matching receipt. Defines cardholder liability and responsibility: A corporate credit card policy should hold cardholders responsible for the security of the corporate card in addition to private information about the company. This can help outline consequences if the policy is violated. Overall, a company credit card policy helps increase security and reduce any fraud or misuse associated with a corporate credit card. We interviewed Molly Walsh, Managing Director – Commercial Card at , who added: “From the firm’s perspective, corporate credit card policies ensure control while streamlining spend that occurs across multiple payment vehicles. An effective policy will drive efficiencies while minimizing opportunities for fraud or misuse. A corporate card policy, coupled with a corporate card program that aligns to the business’ operating structure, also delivers a warehouse of data that can be integrated across an organization to support enterprise resource planning (ERP), general ledger, accounts payable, and eProcurement. "Data integration saves time, improves accuracy, helps identify areas of leakage, and supports program expansion. The spend data can be harnessed to deepen relationships with a specific supplier and deliver potential savings. From the employee’s perspective, a corporate card policy allows business spend to be captured on the designated company payment vehicle as opposed to flowing onto personal cards.” With these things considered, corporate credit card policies are very customizable. As a business owner, you have the ability to set your own rules and regulations to be enforced across all corporate cards. However, there are some drawbacks you should be aware of when creating a policy on your own. Drawbacks of Creating a Corporate Credit Card Policy Yourself The quickest—and potentially safest—route to creating a corporate credit card policy is to use a . If you decide to create a policy on your own, know that it will require more work and you can potentially forget to cover specifics. Since it can be difficult to use the correct legal language and jargon, you may want to consult with an attorney if you build your own policy to make sure you've covered your bases. The drawbacks of creating a corporate credit card policy yourself are: A policy requires more work compared to using a template: Without a corporate credit card policy template, you’ll have quite the work cut out for you. Creating a policy from scratch is much more time-consuming and involves a lot more work. You can potentially leave out important rules: Remembering all the specific rules and regulations that cardholders need to follow is challenging. If you use a template, it's easier to make sure you've covered all the bases. Using the correct legal language is difficult: Legal language is not easy for most small business owners who are creating a policy on their own. A customizable template can help make sure you've used the correct language to protect your business. If you're unsure, it's a good idea to consult with an attorney. Overall, creating a corporate credit card policy on your own can be time-consuming and challenging. However, there are customizable templates that you can use to simplify this process. Companies like give business owners access to affordable corporate credit card policy and procedure templates to ensure their policies protect their businesses. Corporate Credit Card Policy Frequently Asked Questions (FAQs) We covered a lot of information on corporate credit card policies and how to create one for your business. Some questions are asked more often than others, and we address those here. If you have any additional questions, please leave a comment below and we will provide an answer. The most frequently asked questions about company credit card policies for employees are: Are corporate credit cards based on personal credit? When applying for a corporate credit card, the card issuer won’t consider a business owner’s personal credit score. Additionally, the business owner won’t be held personally liable. Card issuers, however, require a “good” business credit score, rated by one of four business credit bureaus: Dun & Bradstreet (80+), Experian (76+), Equifax (90+), or FICO SBSS (140+). Can I use a corporate card for personal use? In most cases, a corporate credit card is meant for business expenses only. Most small business corporate credit card policies will outline usage policies related to cardholders. Typically, employee cardholders are not allowed to use corporate credit cards for personal use. What is a corporate credit card? Corporate credit cards are a distinct type of card, different from small business credit cards, and primarily issued to employees to pay for business-related expenses, such as travel. Corporate cards are best for businesses with $4 million in annual revenue and $250,000 in annual card expenses. Choose a card that supports your spending habits. Bottom Line A corporate credit card policy is important for businesses with a corporate credit card account. An effective corporate credit card policy successfully outlines the eligibility, approval, and usage surrounding corporate credit cards for internal use. Such a policy can also be applicable when employees use other forms of business financing, including small business credit cards. To have a corporate credit card policy created for your business including all the necessary legal language, check out . It has policy templates which are fully customizable to your needs. All you need to do is answer a few plain-English questions about your business. The site also offers document review and attorney consultations if needed. Try it free for 7 days.