Employee business credit cards allow employees to purchase goods and services online or in-store on behalf of the company while giving business owners control over their company expenses. These cards are available as small business credit cards, corporate credit cards, and prepaid business cards and have the same APR Annual Percentage Rate. , rewards structure, and benefits as the primary card. Most issuers typically don’t charge an additional fee per card.
Types of Employee Credit Cards at a Glance
Small Business Credit Cards | Corporate Credit Cards | Prepaid & Debit Business Cards | |
|---|---|---|---|
Best For | Startups and entrepreneurs looking to earn rewards and finance everyday business expenses | Corporations with annual revenue of at least $4 million and projected credit card charges of $250,000 or more annually | Business owners who have cash on hand or prefer no credit check |
Eligibility | Small business owners and freelancers | Corporations, such as LLCs, C-corps, and S-corps | Businesses and individuals |
Credit Limit | Up to $10,000 to $50,000+, based on owner’s creditworthiness | Typically $50,000 or more | N/A |
Regular APR | 9.99%-34.99% | None; most are charge cards, which require balances to be paid in full each month | N/A |
Annual Fee | $0-$695+ | $0-$595+ | Monthly fee per card and setup fee |
Repayment Term | Monthly | N/A; transactions are deducted directly from the card’s balance | |
Late Fee | 2%-4% (or more) of the unpaid balance | 2%-4% (or more) of the unpaid balance | N/A |
Type of Credit | Revolving | Revolving | Not a credit card |
Minimum Credit Score | Fair to Good | Typically don’t require personal credit checks | N/A |
Age of Business | No requirement | At least 2 years | N/A |
Minimum Annual Revenue | Most issuers don’t have a requirement | At least $4 million | N/A |
Personal Guarantee | Yes for most | No | No |
The type of employee credit card that’s right for you and your business depends on the number of cards you need, whether you want to avoid personal liability, and your business’s cash flow.
- Number of employee cards you need Typically, there’s no limit to the number of additional employee cards you can request from your issuer—except for certain issuers and small business credit cards, which usually have a limit of around 100 cards. : If you own a large business and need 100 or more employee credit cards, then corporate cards are a good choice. But if you need only a few credit cards for your employees, small business credit cards and prepaid cards are ideal for businesses of any size.
- Personal guarantee: Most small business credit card issuers require a personal guarantee, which means you will be personally liable for your business’s financial obligations. If you don’t want to provide a personal guarantee, you should opt for corporate charge cards. Prepaid cards may also be an excellent option; since they don’t incur debts, there’s no need for a personal guarantee.
- Cash flow: If you need a revolving credit to help with your company’s cash flow needs, a small business credit card is recommended since it lets you carry a balance to the next billing cycle. Corporate cards also offer revolving credits, but you need to pay your balance in full every billing cycle. If you have sufficient cash on hand and prefer not to incur a debt, a prepaid card is your best bet.
Small Business Credit Cards for Employees
Small business credit cards are a great choice for
- Businesses of all sizes needing easy financing
- Businesses that may be unable to pay their entire balance by the due date
- Business owners who can provide a personal guarantee
The best options offer rich rewards, relatively low interest rates, and no annual fees. There are also cards designed for owners with fair or bad credit and new businesses with no credit history.
| PROS | CONS |
|---|---|
| Offer rewards and welcome offers | Typically require a personal guarantee |
| Don’t charge additional fees for employee cards | Need a personal credit check on the business owner |
| Come with business tools that let you monitor employee expenses and set limits | |
Our Small Business Credit Card Recommendation
U.S. Bank Business Triple Cash Rewards World Elite Mastercard®
BEST FOR:
Those wanting to earn up to 3% cash back on selected spending categories
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
- Earn $750 in cash back. Just spend $6000 on the Account Owner's card in the first 180 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022.
- Terms and conditions apply.
Pros
- 0% purchase APR for 12 months
- $0 annual fee
- U.S. Bank ExtendPay® Plan feature
Cons
- No 0% APR on balance transfers
- Charges balance transfer and foreign transaction fees
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
- U.S. Bank ExtendPay® Plan: Pay off your eligible balance over time with this feature without interest—just pay a small monthly fee
- Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
- Earn $750 in cash back. Just spend $6000 on the Account Owner's card in the first 180 days of opening your account.
- Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
- 1% cash back on all other eligible net purchases.
- Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
- No limit on total cash back earned.
- Rewards never expire.
- Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks.
- Great Offer from U.S. Bank, a 2022 World's Most Ethical Company® - Ethisphere Institute, February 2022.
- Terms and conditions apply.
Pros
- 0% purchase APR for 12 months
- $0 annual fee
- U.S. Bank ExtendPay® Plan feature
Cons
- No 0% APR on balance transfers
- Charges balance transfer and foreign transaction fees
- MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
- Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
- Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
- U.S. Bank ExtendPay® Plan: Pay off your eligible balance over time with this feature without interest—just pay a small monthly fee
It is our top business card with no annual fee and one of our best small business credit cards. It lets you save on credit costs in several ways, including
- $0 annual fee
- 0% APR on purchases transactions for the first 12 billing cycles from opening an account
- Up to 5% cash back on your purchases
- $750 cash bonus as a welcome offer when you spend at least $6,000 in the first 180 days from account opening
- ExtendPay Plan lets you pay off your eligible balance over time without interest, with only a small monthly fee
Corporate Credit Cards for Employees
Corporate cards are a great choice if you meet the following criteria:
- Have at least $4 million in annual revenue
- Spend $250,000 or more in yearly credit card expenses
- Can pay the entire balance every billing cycle
What makes corporate credit cards different is that they offer 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.
| PROS | CONS |
|---|---|
| Robust controls and account management features | Balance is due in full each month |
| Higher credit limits compared to most small business credit cards | Small businesses won’t qualify |
Our Corporate Credit Card Recommendation
Ramp Credit Card
BEST FOR:
Those who are using Ramp as their main financial management tool
- Up to 1.5% cash back on purchases, regardless of spending categories
Pros
- Offers rewards for cardholders
- Does not charge additional fees
- Offers direct integrations to notable accounting tasks
Cons
- Requires paying balances in full each month
- Is unavailable to sole proprietors and unincorporated businesses
- Travel and emergency assistance services: Call the Benefit Administrator at (800) 397-9010 if you are in the United States or (303) 967-1093 if you are outside of the US if you need emergency assistance.
- Purchase security: Receive a maximum of $10,000 per claim and $50,000 per cardholder in cases of theft or damage to purchases made with your card.
- Auto rental collision damage waiver: When using this card for renting a car, you can be reimbursed for damages caused by theft or collision up to the Actual Cash Value of most rented cars. Note that rental periods of 31 consecutive days are covered.
- Extended warranty protection: Extend warranties for eligible purchases made with your covered account and/or rewards programs associated with your account.
- Up to 1.5% cash back on purchases, regardless of spending categories
Pros
- Offers rewards for cardholders
- Does not charge additional fees
- Offers direct integrations to notable accounting tasks
Cons
- Requires paying balances in full each month
- Is unavailable to sole proprietors and unincorporated businesses
- Travel and emergency assistance services: Call the Benefit Administrator at (800) 397-9010 if you are in the United States or (303) 967-1093 if you are outside of the US if you need emergency assistance.
- Purchase security: Receive a maximum of $10,000 per claim and $50,000 per cardholder in cases of theft or damage to purchases made with your card.
- Auto rental collision damage waiver: When using this card for renting a car, you can be reimbursed for damages caused by theft or collision up to the Actual Cash Value of most rented cars. Note that rental periods of 31 consecutive days are covered.
- Extended warranty protection: Extend warranties for eligible purchases made with your covered account and/or rewards programs associated with your account.
It is our leading corporate card because of its straightforward rewards program and other benefits, including
- Unlimited 1.5% cash back on eligible purchases
- Streamlined expense management system, including robust spend controls, automated accounting, and bill payments
- Unlimited physical and virtual cards, available instantly
- Up to 10 to 20 times higher credit limits than regular business credit cards
Prepaid & Debit Business Cards for Employees
Prepaid and debit business cards limit your risk because you’re not borrowing money. They are good for those who
- Don’t want to have debts
- Have plenty of cash on hand
- Either can’t qualify for or don’t want to apply for small business credit cards or corporate cards
To use a prepaid or debit card, you need to fund the card with cash. Only then can employees spend the funds available on the card. It doesn’t require a personal guarantee or a credit check.
| PROS | CONS |
|---|---|
| Your company will not incur debt | You need to have cash on hand to use the card |
| Personal credit check and personal guarantee are not required | They may not be ideal for businesses with large expenses because of daily spending limits and load limits |
| They are relatively easier to apply for | Most issuers charge additional cardholder fees |
Our Prepaid & Debit Business Card Recommendation
 Emburse Spend CardBEST FOR: Earning unlimited cash back rewards | |
|---|---|
Spending Limit | Load Limit |
|
|
Costs | |
| |
It is our top business prepaid card because of its fixed-rate cash back. On top of that, it comes with the following benefits:
- Unlimited 1% cash back on all eligible purchases
- Up to $100,000 deposit limit—but you may request a higher limit subject to approval
- Access to business apps, such as Emburse Spend and Emburse Abacus
- Expense management system lets you track real-time expenses, categorize vendors, and approve or reject transactions
Best Practices for Using Employee Credit Cards
In addition to creating a company credit card policy and having employees sign the agreement, the following best practices when using employee credit cards can also limit your risks and improve your process.
- Limit card access: Only issue employee credit cards to those who will frequently need to spend money on behalf of the company. Employees with occasional business-related expenses are best reimbursed instead of being given a credit card.
- Set up account restrictions: Limit your risk by taking advantage of the ability to set individual card limits, such as spending caps and restrictions on spending categories. For example, your office manager needs the ability to purchase office supplies, not fuel or dining.
- Ensure employees understand the rules: Discuss the terms of your employee credit card policy with your employees, and ensure it clearly indicates rules about the allowed usage, limits, and reporting requirements.
- Turn on alerts: Set text alerts based on card spending. For instance, you can set an alert for spending over a certain threshold or suspicious activity.
- Ask for receipts: Continue the practice of requiring receipts and matching them up to your monthly billing statement to ensure all charges made on the card are well accounted for.
- Review your account: Limit the risk of employee fraud or abuse by regularly reviewing account transactions prior to receiving your monthly bill. Track individual spending online so that you can trace expenses back to each employee.
Frequently Asked Questions (FAQs)
The maximum limit varies per small business credit card issuer, but it’s somewhere around 100 cards. On the other hand, corporate credit cards typically have no restrictions on the number of employee cards you can request. For prepaid cards, your fees will depend on how many cards you need—the more cards you add, the higher your fees will be.
Among the three types of employee cards (small business credit cards, corporate credit cards, and business prepaid cards), debit and prepaid business cards are the easiest to apply for because issuers won’t need to perform a credit check or need a personal guarantee from the business owner. However, you need to have cash on hand to use prepaid business cards, and they typically come with higher costs, especially if you need to add more cards.
It depends on the type of company card you choose. A small business credit card can affect both the owner’s personal and business credit, as most issuers report transactions to personal and business credit bureaus. If you don’t want your business transactions to affect your personal credit, consider one of the leading business credit cards that don’t report to personal credit bureaus.
Meanwhile, corporate credit cards may affect your employees’ personal credit if you establish individual or joint liability to repay the charges. However, prepaid cards won’t affect personal or business credit.
Most business credit cards may require you to provide a personal guarantee, which will ultimately increase your personal risk and liability. In addition, giving credit cards to employees means you’ll have more cardholders and corresponding expenses to monitor. Should you fail to keep your business expenses under control, you run the risk of harming your personal and/or business credit.
Bottom Line
Understanding how employee credit cards work and what their features are could help you streamline your business’ expense process and control your employees’ spending on behalf of the company. Using employee credit cards can also help you monitor and restrict employees’ use of company funds.
Be vigilant, however, as some types of employee credit cards expose you to personal risk in case of employee theft, unauthorized transactions, or late or missed payments. Also, be sure to choose a card that offers valuable benefits to your business.
