Many businesses, both large and small, utilize company issued credit cards as a way for employees to complete small purchases or pay for other business related expenses. In order to reduce the possibility of misuse, well defined policies for card usage should be communicated to employees and their supervisors. These policies should address issues such as appropriate usage, security, limitations and approval process.
• Employees selected to receive business credit cards should be held responsible for the security of the card, as well as the privacy of company-related information. This responsibility should include keeping the card in a secure location, protecting the card personal identification number and reviewing statements for fraudulent activity. Company credit cards should never be used by anyone other than the cardholder. Lost or stolen cards should be reported to the card issuer and the company as soon as possible.
Don’t assume anything
• No one at your company should be exempt from having his or her purchases reviewed by another person, or an outside auditing firm. Corruption is just as likely to occur at higher levels, where the executives or upper management are free from scrutiny — and above reproach — as at lower levels in the company.
In all, it is important for both employer and employee to remember that having a company credit card is a privilege and a responsibility, not a right. This privilege can be revoked at any time, should there be the slightest hint of irresponsible usage.