Understanding Corporate Credit Cards for Beginners

Every decision in the corporate world is crucial, especially when handling money. As you and your team navigate through financial hurdles while establishing stability, a corporate credit card can help steer your company in the right direction.

Whether planning the corporate budget or creating financial policies, it pays to know how a corporate credit card in the Philippines works.

Learn about these cards, what distinguishes them from regular credit cards, and tips on maximizing their use in this blog.

What is a Corporate Credit Card?

A corporate or business credit card in the Philippines is a financial product that banks issue to companies, providing funds for operational expenses. Unlike personal credit cards, corporate cards have tailored features and uses to meet unique business needs.

These cards offer budget management features, spending controls, and rewards suitable for corporations. Corporate credit cards also incentivize travel, office supplies inventories, and official business engagements by letting you earn cash, points, or miles.

A key distinction between corporate credit cards and those for personal use is liability. With a corporate card, the company is responsible for repayments instead of individual employees.

It should go without saying that responsible use can prevent cardholders in your company from overspending, which might cause your business to incur debt.

In addition to these functionalities, corporate credit cards may offer enhanced reporting and analytics features, allowing you to gain beneficial insights into your credit card balance spending patterns and identify areas for cost savings and optimization.

7 Reasons to Secure Corporate Credit Cards in the Philippines

Corporate credit cards have more uses than to pay bills or make crucial purchases; they can change your whole strategy regarding finance management. Here are some of the reasons your company should get this type of card:

1. Streamlined expense tracking
   
   Over 40% of employees spend a quarter of a workweek focusing on repetitive tasks, such as manual expense tracking. Besides being a waste of time, there’s also the risk of recording inaccurate data. When that happens, you must start the process over.
   
   With a corporate credit card, tracking business expenses is a breeze. It automatically logs and categorizes every transaction, eliminating the hassle of manual record-keeping and providing transparency into your company's spending.
2. Customizable employee spending controls
   
   Overspending can lead to severe repercussions, which is why corporate credit cards allow customizable employee spending controls. You can set individual credit limits, restrict purchases to specific categories, and monitor transactions in real time to ensure compliance with policies and that the company’s cardholders do not misuse business funds.
3. Improved cash flow management
   
   By consolidating business expenses in a corporate credit card, you can simplify cash flow management and gain better control over your company's finances. Many corporate cards offer flexible payment terms and grace periods, providing flexibility when experiencing cash flow fluctuations.
4. Robust security
   
   Your company can benefit from mechanisms that corporate credit cards employ against fraud and unauthorized transactions, including EMV chip technology and advanced monitoring systems.
   
   EMV chips generate unique codes for each transaction, preventing information cloning and enhancing security when using cards for purchases.
   
   Meanwhile, fraud monitoring systems analyze transaction data using machine learning algorithms, swiftly detecting irregularities such as unusual spending patterns or prohibited account access.
   
   Together, these features offer robust protection against fraud, bolstering the security of corporate credit cards as electronic payment systems.
5. Rewards tailored to frequent business travelers
   
   If your employees often travel for business, you can offset some expenses via reward programs that let you earn points, miles, or rebates on flights, hotels, and dining.
6. Worldwide acceptance
   
   Whether you're doing business locally or internationally, you can present corporate credit cards to numerous merchants worldwide. They are a convenient payment solution for your company’s global operations.
   
   RCBC’s Corporate Mastercard® is valid in 220 countries at over 35 million international establishments. You can choose between spending pesos or dollars—or both—and get an SMS notification for every transaction so you can monitor your expenses.
7. Access to financial management tools
   
   Banks go the extra mile by giving companies a comprehensive suite of financial management tools, such as mobile apps. These software solutions include expense-tracking features that allow you to identify spending trends, pinpoint areas of overspending, and make informed decisions to optimize budgets.
   
   Some programs offer integrated expense management platforms that streamline the reimbursement process. Employees can submit expense reports digitally, attach receipts, and track the status of their requests, speeding up the release or replenishment of funds so they don’t have to pay out of pocket.

Spending Power with Corporate Credit Cards

The right tools, like business credit cards, play a crucial role in your company’s success by boosting its financial capabilities. Corporate credit cards, like RCBC's Corporate Mastercard®, offer many benefits to streamline expense management, enhance security, and support business growth.

So, level up your company’s finances by partnering with RCBC Credit. With RCBC Credit Cards, you have personalized financial solutions at your fingertips.

Apply now for a corporate credit card with RCBC.