Requires Split Disbursement To The Travel Card Vendor
If you are a frequent traveler on official duties, you may be aware of travel cards issued by your employer. Travel cards are a convenient way to pay for your travel-related expenses such as hotels, rental cars, flights, meals, and more. However, there are certain rules and restrictions that you need to follow when using a travel card, such as the requirement of "split disbursement to the travel card vendor." In this article, we will discuss what split disbursement is, why it is required, and how it works.
What is Split Disbursement?
Split disbursement is a process where your travel expenses are paid using a combination of your personal funds and your organization's funds. In the case of travel cards, split disbursement refers to a specific arrangement where a portion of your travel expenses is paid directly to the travel card vendor. This means that when you make a purchase using your travel card, the amount is not charged to your personal credit limit, but rather to your organization's account.
For example, if your travel expenses for a business trip total $1,000, and your organization has a $500 limit on your travel card, split disbursement means that your organization will pay $500 to the travel card vendor directly. The remaining $500 will be charged to your personal credit limit, and you will have to pay for it yourself.
Why is Split Disbursement Required?
The split disbursement requirement is in place to ensure that there is proper control and oversight of travel-related expenses. By paying a portion of your travel expenses directly to the travel card vendor, your organization can track and monitor your travel expenses easily. This helps to prevent fraudulent or unauthorized charges, gives the organization better transparency into travel spending, and helps to maintain compliance with federal regulations.
Additionally, split disbursement also helps to ensure that your personal credit score is not negatively impacted by high travel expenses. Since a portion of your travel expenses is paid for directly by your organization, it reduces the amount that you need to pay out of pocket, which can help to keep your credit utilization rates low.
How Does Split Disbursement Work?
The split disbursement process can vary depending on your organization's policies and procedures, but generally works as follows:
- When you make a travel-related purchase using your travel card, the charge is processed by the vendor and sent to your organization for approval.
- Once your organization approves the purchase, they send a portion of the payment directly to the travel card vendor to cover the portion of expenses that they are responsible for.
- Any remaining balance is charged to your travel card account, and you are responsible for paying it back to the vendor according to the terms of the agreement with your organization.
It's important to note that split disbursement only applies to travel-related expenses, and not to other expenses that you may incur on your travel card, such as personal expenses or entertainment expenses.
Conclusion
Split disbursement to the travel card vendor is a requirement that is designed to help organizations track and monitor travel expenses, maintain compliance with regulations, and protect employees from excessive personal expenses. By understanding how split disbursement works, you can make sure that you are in compliance with your organization's policies and procedures, and avoid any potential problems or issues related to your travel expenses.