Saturday, 25 January 2014

pCard and corporate credit card procurement

Today's Times included a throwaway comment that "there were signs that restrictions on corporate credit cards had started to loosen". Given that the article was generally referring to bankers, perhaps we should not draw conclusions that this is indicative of a general trend.

Of course we also need to be cautious in reading too much into what is meant by 'the restrictions' - for example, does it mean higher thresholds, wider categories of spend allowed or wider access to corporate credit cards?

Either way, organisations need to remember that corporate credit cards are not a perk or an opportunity for extravagance at the organisations expense. They should fit within the Finance and Procurement Policies and Strategies as a way of reducing transaction costs, and managing Low Value Orders. They also need to be supported by protocols, controls and guidance otherwise you may as well just hand over a wad of cash and tell the profligate to go and enjoy themselves.

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