Employee Credit Cards – What You Need To Know

Find out more about credit cards for employees

An employer credit card has gained popularity of late. The outdated method of tiresome expense reports and the related hours of sorting through them has gone by the wayside. Employers now prefer giving their employees a credit card because of the countless hours that were spent with the old method of tracking expenditures.

Citibank Business Credit Card

If you are looking for a business credit card, the CitiBusiness Gold could be the card you have been looking for. With up to 99 additional cardholders, you can issue a credit card to your employees, making it easier by keeping your business transactions all together under one business credit card account.

• $149(half-price annual fee in the first year) annual fee
• 0% p.a. for 4 months (reverts to 20.74% p.a.) on purchases
• 0% p.a. for 4 months on balance transfers
• Cash Advance Rate of 21.49% p.a.
• 55 days interest free
• Minimum Income Requirement of $30,000 p.a.

Read the Citibank CitiBusiness Gold terms and conditions.

This new method is much more convenient because when the employee is given a credit card by employer then they do not have to use their own cash to conduct company business and then wait to be reimbursed. This method required substantial overhead to hire administrative staff to oversee all of employee expenditures.

Some employees did not like this method because they felt that they were subsidising the company business by allowing the employer to let them “borrow” money and then wait to be reimbursed. It was also tedious for employees to have to record each and every expense and submit timely expense reports.

There are some issues that can occur when you are an employee with an employer credit card. If you make personal purchases, they can be difficult to differentiate on the card. And, if the employee makes an a large amount of personal expenditures on the credit card, this may cause the employer to become suspicious. Personal expenses and business expenses must be strictly separated. There are credit card programs that can offer to pay a user back for personal purchases, but this can still be difficult to detect.

The most reasonable method to combat this issue is to have the employee carry around his or her own credit card. This will make things infinitely easier and will clear up any issues. If an emergency purchase comes up, the employee will not be tempted to use the company card because he or she will have his own card to use. This will eliminate any need to explain away a purchase that may have previously been made with the company card.

The employer’s card should be used only for purchases related to the business. This would include anything that is necessary to keep the company running smoothly. Any raw materials or supplies necessary for running the business should solely be bought using the company card. Anything that does not fall into that category must be purchased with a personal card.

Having a credit card by employer can make buying anything company related a much easier endeavor. There will no longer be suspicion between employee and employer and everyone will know exactly where they stand when it comes to using their cards. Employers can feel safe knowing that their cards are used exactly in the way that they were intended. Employees will not feel tempted to use a card that should only for company related items.

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Popular Credit Card Offers

			Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)
	Westpac Low Rate Card - 0% Offer	A credit card with a low rate offer on both balance transfers and purchases, plus a low annual fee.	0% for 6 months (reverts to 13.49% )	0% for 6 months	$45	21.49%
	Citibank Clear Platinum Card	Competitive interest rate on purchases and balance transfers offer.	11.99%	2.9% for 12 months	$99	21.74%
	St George Vertigo	Take advantage of this great offer from St.George with a low rate on purchases and a low balance transfer offer.	13.24%	0.99% for 12 months	$55	21.49%
	ANZ Platinum Credit Card	An introductory interest rate offer on balance transfers and purchases, plus a $0 first year annual fee.	0% for 6 months (reverts to 19.24% )	0% for 6 months	$0 annual fee for the first year( $87 thereafter)	20.99%