3 Common Misuses of Corporate Cards

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Providing company credit or debit cards to employees for business purchases offers a variety of benefits for business owners and managers. It allows employees to pay for the things they need to get the job done without going through a manager or other middleman. Unfortunately, corporate card fraud and misuse are common occurrences that plague businesses of all sizes.

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How Do Corporate Cards Get Misused

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Personal Purchases

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The use of business cards for personal purchases creates significant challenges for businesses.  If you’re not carefully tracking your receipts, it may be several weeks or months before you realize this is happening. Some businesses experience this problem most heavily after an employee leaves the company and continues to use the corporate card they were issued until it expires. 

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Unauthorized Vendor Payments

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As a business, it is important to maintain quality relationships with your vendors, especially if you have an exclusive relationship with a particular vendor. These relationships can be damaged by the misuse of a company card by a contractor at an unauthorized vendor or merchant.

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Inflated Expenses

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It can be very easy for employees to incur unnecessary and unauthorized expenses during travel. This can include upgraded fights, overly generous tips at restaurants, or the use of the mini bar in the hotel room. 

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‍The Solution? Better Spending Control

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‍The best way to prevent corporate card misuse is through better spending control and tracking.  Outpave’s unique small business expense management platform allows you to assign cards to specific employees, set limits on daily spending, assign cards to specific merchants, and even control the type of vendors where purchases are made.  Every purchase appears in the platform within minutes of completion, making it easier to track and approve expenses in real-time.  Employees can upload receipts into the app and quickly match them to the expense, helping increase accountability and trust. 

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‍Get started Today

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‍If you’re ready to give your employees the flexibility they need without losing control, schedule a demonstration today.  Don’t forget to follow our social media channels for more information about how our platform can improve your small business finances.