It's not clear when credit cards were first used, but today, corporate credit cards are becoming more and more popular. Many businesses and companies are now applying for their own credit card accounts for their business. More and more businesses want to get a corporate credit card because it can be very useful because it lets the business pay off debts.
A business that wants to get a corporate credit card could also give each employee their own card. Most workers think of their credit cards as money, so they use them to buy things and pay off their own debts.
But this way of thinking could be very dangerous for the company. If employees use company credit cards for personal reasons all the time, the company may end up with a lot of debts to pay off. Also, if a lot of debts are taken out of an employee's pay, what will they get when payday comes? When employees use their company credit cards too much, it can be very bad for their pay.
Because of this, employers need to have rules, protocols, or policies about how employees can use their corporate credit cards. A corporate credit card should be used to buy things that the company or the employee needs and that are related to their work. If not, a worker can't use it for anything else. This is the main reason why a business needs a credit card.
Still, it's hard for your employees not to use their corporate credit cards. That's why you need to make a policy about how to use them and make sure everyone follows it.
If you have a policy and make sure that people who break it get punished (like being suspended, getting a warning or memo, having their pay taken away, etc.), they may never use their own cards for their own purposes again. This may seem harsh, but if you really don't want them to use this for their own purposes, you have to make them do it.
Also, the employer should do this because most credit card companies hold the employer responsible for all charges made on a business credit card. Even if the employer and employee have a written or verbal agreement to the contrary, the issuers still hold the employer responsible for any charges on the account because he is the main cardholder.
Putting up a policy on how to use credit cards could set the protocol for how corporate cards are to be used. This will also help the workers understand their responsibilities and liabilities when using the cards. Before giving out the rules, the boss must make sure that the workers have read them. But these rules must be fair for both the company and the workers.
If the employer wants to be fair, he or she can limit how much an employee can put on the card for personal use. Or, the employer could offer a policy that is good for both of them. This may be hard, but if the company does it, the employees will see it as being more fair and unbiased.
So, the employees will gladly follow the company's credit card policies. This could also be a chance for the boss and the workers to get along better.
