Usage Policy for Small Business Credit Cards

A usage policy for small business credit cards should help protect the company from financial abuse or improper charges by employees and other corporate officers. A business credit card usage policy should have rules for acceptable and reimbursable business related expenses by explicitly stating these in writing.

State the Rules

A usage policy for small business credit cards should set ground rules for how employees and other stakeholders should use the credit cards while conducting daily business. This policy should include who becomes an authorized user of the credit cards. Your policy should also state how much an employee is allowed to charge based on the category of the expense. There should also be a stated policy for what specifically is and isn't allowed within a certain category. For example, a flight reservation and hotel could be an acceptable expense, while room service at the hotel would not be.

Business Credit Card Auditing

The use of small business credit cards leaves a paper trail for accountants at the business to audit. This ensures that the credit cards are being used properly and for legitimate expenses. Some things that accountants and auditors look for include employees and other stakeholders who use the credit cards but mask the true nature of the expenses. This can be done using misleading business names that are not providing the stated service.

Using MCC Codes

Your credit card company can also help you prevent unauthorized charges. Businesses are categorized for credit card purposes according to merchant category codes. To help set an acceptable small business credit card usage policy, work with your credit card provider to disallow using the cards at establishments falling under certain MCC code designations. For example, these off-limits establishments could include nightclubs, casinos and liquor stores.