If you`re a business owner, you know that managing expenses is crucial. One tool that can help you do that is a corporate card. A corporate card is a credit card that is issued to a business and used for business expenses. It can help you keep your personal and business expenses separate and give you a clear picture of your business`s spending. But before you sign up for a corporate card, be sure to read the corporate card agreement carefully.
A corporate card agreement is a contract between a business and a credit card issuer. It outlines the terms and conditions of the card, including fees, interest rates, and rewards. When you sign up for a corporate card, you`re agreeing to abide by the terms of the agreement.
Here are some important things to look for in a corporate card agreement:
Fees: Look for any annual fees, late fees, or other charges that may apply. Make sure you understand how fees are calculated and when they will be charged.
Interest rates: The interest rate is the amount of money you`ll pay if you carry a balance on your corporate card. Look for the APR (annual percentage rate) in the agreement and make sure you understand how it`s calculated.
Rewards: Some corporate cards offer rewards programs that can earn your business points, cash back, or other incentives. Make sure you understand how the rewards program works and what you need to do to earn rewards.
Credit limits: The credit limit is the maximum amount of money you can spend on your corporate card. Make sure you understand how the credit limit is determined and how much you`ll be able to spend.
Employee cards: If you plan to give corporate cards to employees, make sure you understand the rules for employee cards. Some issuers have limits on the number of cards you can give and may charge fees for each card.
Liability: Understand who is liable for charges made on the corporate card. In some cases, the business is responsible for all charges, while in other cases, employees may be responsible for charges they make on their card.
Dispute resolution: Look for information on how disputes will be handled if there is a problem with your corporate card account.
By carefully reading the corporate card agreement, you can ensure that you understand all the terms and conditions of the card. This can help you manage expenses and avoid any surprises or unexpected charges down the road.