Programs & Policies Travel Card Program Travel Card 101
Traveling for business purposes is an integral part of modern corporate culture. Companies send their employees all around the world to meet potential clients, attend conferences, and conduct business deals. However, managing employee travel expenses can be a cumbersome task. Travel cards or corporate credit cards are essential for businesses to streamline their travel expenses. In this article, we will discuss programs & policies related to the Travel Card program, also known as Travel Card 101.
What is a Travel Card?
A Travel Card or corporate credit card is a credit card issued by a company to its employees to pay for business-related expenses. It is similar to a personal credit card but is used exclusively for business purposes. The company sets limits on the type and amount of expenses that can be charged to a card. The card issuer bills the company directly, and the company pays the bill. In addition to streamlining travel expenses, travel cards also provide businesses with better control over employee spending and enable them to monitor expenses in real-time.
How Does a Travel Card Work?
When a company issues a travel card to its employee, the employee has to use the card exclusively for business expenses. The company usually sets a spending limit, beyond which the card cannot be used. The employee is responsible for submitting all relevant receipts and expense reports, and the company reimburses the employee within a specified time frame. The card issuer bills the company directly and notifies them about any transactions that exceed the spending limit or are not in compliance with company policies. This system ensures that businesses can control their travel expenses and employees are not held responsible for expenses that are outside company policies.
The Benefits of Using a Travel Card
The Travel Card program has several benefits for both the company and employees. Some of the key benefits are:
- Better Control Over Expenses: Travel cards enable companies to set clear spending limits and monitor expenses in real-time. This helps them control expenses and reduce the risk of unauthorized spending.
- Eliminates the Need for Reimbursement: With travel cards, employees don't have to pay for business expenses out of their pockets and wait for reimbursement. This eliminates the need for advances and simplifies the reimbursement process.
- Streamlines Expense Management: Travel cards simplify expense management and enable businesses to track expenses and generate reports easily. This saves time and resources while increasing efficiency.
- Rewards Programs: Many card issuers offer reward programs that allow companies to earn rewards points or cashback rewards for every qualifying purchase. These rewards can be used to offset travel expenses or other business-related expenses.
Travel Card Program Policies
Travel Card Programs have specific policies that govern their use. These policies are in place to ensure that employees use the card exclusively for business purposes and that expenses are within the company's spending limits. These policies include:
- Spending Limits: Companies set spending limits on travel cards to ensure that expenses are within budget. These limits are set based on the employee's role and responsibilities within the company.
- Restricted Purchases: Travel cards cannot be used for personal expenses or items that are not related to business purposes. This includes entertainment expenses, personal shopping, and luxury items.
- Expense Reports: Employees have to submit expense reports for all travel-related expenses. These reports should include receipts, invoices, and other relevant documents.
- Non-Compliance: Non-compliance with Travel Card Program policies can result in disciplinary action, including revocation of the card, and legal action.
Conclusion
The Travel Card Program or Travel Card 101 is an essential tool for businesses that have employees who travel frequently. It streamlines travel expenses, provides companies with better control over employee spending, and simplifies expense management. However, it is essential to follow Travel Card Program policies to ensure that expenses are within budget and comply with company policies.
