If your company earns tens of millions of dollars in revenue annually, you may be in the market for a corporate credit card. Different from business credit cards, corporate cards â sometimes known as commercial cards â are designed for large companies with hundreds of employees and substantial revenue streams.
When selecting the right corporate card for your company or organization, you should consider a variety of factors, such as: How much revenue does the company earn annually? Do you plan to use the card to purchase business goods and services? Do employees need to charge business travel and entertainment expenses? Do you need to track all company and employee spend in one place?
Although there are many corporate cards currently on the market, only a few issuers offer them, including:
- Capital One
- American Express
- J.P. Morgan
- Wells Fargo
Read on for more details on the corporate cards offered by these issuers.
For companies interested in streamlining their business, Capital Oneâs corporate card is a great option. Along with providing flexibility in how you earn rewards and when you pay your bill, the One Card from Capital OneÂ® is designed to offer simplified payment solutions.
The One Card offers two ways to earn rewards: A company can choose to earn up to 1.5X rewards on net purchases with a 14-day billing cycle and seven days to pay. Or â if you prefer a longer billing cycle â you can choose to earn up to 1.25X rewards on net purchases with a 30-day billing cycle and 14 days to pay. There is no limit on the amount of rewards you can earn, and rewards do not expire as long as the account remains open.
Rewards can be redeemed for gift cards, merchandise, statement credits or as rebates that provide cash back directly to the company.
The One Card offers a variety of benefits, including real-time spending controls, fraud protection services and purchase and travel protections for employees. We also found that One Cardâs online platform experience to be simple and intuitive for both administrators and cardholders. Additionally, cardholders can participate in the Mastercard Easy Savings program â which lets your company earn up to a 4% discount at more than 30,000 participating merchants, from hotels and rental car companies to gas stations and restaurants.
All of these perks come at a small price: Capital One charges just $35 per authorized card user. A company can add unlimited authorized users, set and adjust employee spending limits, restrict transaction types and track and manage spending.
Keep in mind, though, the One Card from Capital One is best suited for companies with more than $10 million in revenue. Otherwise, you may want to consider the Capital One Spark Cash for Business card instead.
American Express offers several corporate credit cards that can be customized to fit each companyâs needs. The Corporate Platinum Card, for example, is designed for senior executives and offers premium business travel benefits, including access to more than 1,200 airport lounges and an up to $200 airline fee credit. The card also comes with a hefty $550 annual fee.
The Corporate Purchasing Card, on the other hand, is designed to provide simplicity and flexibility for a companyâs everyday business spending. By offering a convenient way for employees and departments to purchase business goods and services, the card can decrease paper invoices and checks to help reduce processing costs. The Corporate Purchasing Card also does not charge an annual fee.
American Express corporate cards offer two different ways to earn rewards. A company can choose to allow individual employees to redeem points for personal use, or the company can consolidate points from several enrolled corporate cards for company use.
Employees will earn 1 point per dollar on eligible purchases charged to their enrolled corporate card. Points can be redeemed for gift cards, merchandise, air travel, hotel stays and more. Employees can also choose to transfer points to frequent traveler programs or link them to their other Membership Rewards program account.
If the company chooses to earn Corporate Membership Rewards, they will earn 1 point per dollar on eligible purchases charged on enrolled corporate cards that can be redeemed for office supplies, technology products and business services, as well as gift cards for employees and clients. Points can also be used to cover all or part of the balance on a statement credit when redeemed as a statement credit.
A company can participate in both the employee Membership Rewards program and the Corporate Membership Rewards program at the same time; however, each corporate card can only be enrolled in one program at a time.
J.P. Morgan offers several credit card solutions for large organizations. By filling out an online questionnaire, J.P. Morgan will help match you with the most appropriate card for your organization. For example, if your company spends $20 million or more annually on travel-related expenses, you will be matched with a corporate card, which is designed for companies that want to simplify the management of business travel and entertainment expenses.
Or, if youâre company spends between $1 million and $9.9 million per year, J.P. Morgan may recommend the One Card, which allows a company to consolidate and manage all business expenses, including business-to-business purchases and travel and entertainment expenses, with a single card program. The program costs $95 per card, with a maximum of 10 cards, and costs are waived if you spend more than $1 million per year on your cards. You’ll also earn points on all purchases that can be reinvested in your business by applying a statement credit to your bill.
Citi offers several corporate credit card options â some geared toward travel and entertainment, some toward purchases and business to business and others designed for both.
The Citi Corporate Card, for example, allows companies to manage employee travel and entertainment expenses with a globally accepted card. Benefits include a 24/7 customer service helpline, implementation support, ATM cash withdraw, card optimization consultation, dedicated account management, fraud protection on unauthorized charges as well as reporting, administrative and online tools.
The card is best for companies with travel and entertainment expenses who want a global footprint and complete spend visibility and control. The card also provides program administrators with the ability to easily obtain spend reports, manage spend limits and perform other administrative functions.
The Citi One Card, on the other hand, lets cardholders pay for both purchasing and travel expenses with one card. Benefits include a 24/7 customer service helpline, implementation support, ATM cash withdrawal, dedicated account management, fraud protection on unauthorized charges as well as reporting, administrative and online tools.
Citi corporate cards do provide Citi ThankYou Rewards; however, the rewards rate and fees associated with each card vary based on the individual company. The fees and rewards associated with each card vary from company to company.
Wells Fargo offers the WellsOne Commercial Card, which allows purchasing, travel and entertainment, account payable invoices and fleet expenditures all in a single card. By optimizing payment processes and providing comprehensive reporting, the card allows companies to reduce their per-transaction costs and streamline approvals. According to Wells Fargo, its electronic payment process can eliminate up to 90% of the $50 to $150 per-transaction cost from issuing and reissuing purchase orders and checks.
The card is best for organizations that want to expand globally, reduce per-transaction costs and increase the speed of approvals. Additionally, the card allows traveling employees to easily manage card transactions and submit expenses via mobile access.
The bottom line: Shop around
Before choosing a corporate credit card, itâs important to do your research. We recommend that you contact a commercial representative from each issuer to learn more details about their corporate credit card offers â especially since some issuers do not include details, such as rates and fees, on their websites. Also, because the commercial credit card industry is highly competitive, a little shopping around may get you a higher rewards rate and/or lower fees.
See related:Â Corporate card vs. business card: Which is right for you?