{"id":4816,"date":"2020-10-08T18:51:58","date_gmt":"2020-10-08T13:21:58","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=4816"},"modified":"2026-01-02T17:48:18","modified_gmt":"2026-01-02T12:18:18","slug":"what-is-a-corporate-credit-card","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/what-is-a-corporate-credit-card\/","title":{"rendered":"Corporate Credit Card: Why Every Business Should Get One"},"content":{"rendered":"

Lately, corporate credit cards have been all the rage. They have seen a surge in demand because of the evolving needs of Indian businesses. <\/span><\/p>\r\n

India is one of the prime ecosystems for entrepreneurs, with over fifty thousand ventures disrupting traditional businesses. <\/span> Corporate credit cards<\/a> aim to solve the hassles of digital spending for businesses. They act as a financial tool designed to offer working capital, streamline expense reporting, and protect the personal credit scores of business owners.<\/span><\/p>\r\n

So, if you don\u2019t have a corporate credit card for your business yet, we\u2019re going to tell you why it\u2019s a good idea to get one. Read on.<\/span><\/p>\r\n

What is a corporate credit card?\u00a0<\/span><\/h2>\r\n

It is a type of credit card issued by a bank to a business. The business owner can choose to extend the card to their employees as well to help create a seamless reimbursement experience. This way, they don\u2019t have to use their personal funds to pay for business-related expenditures and then, go through with the reimbursement process.\u00a0<\/span><\/p>\r\n

Corporate cards increase the company\u2019s purchase power while improving the cash conversion cycle with short-term credit at no cost (zero interest).\u00a0<\/span><\/p>\r\n

Some expenses such as SaaS subscriptions, cloud services, and marketing expenses can only be done with a credit card. <\/span> With corporate credit cards, you also get a higher credit limit than personal cards to be able to make all business expenses without affecting personal liability<\/a>.<\/span><\/p>\r\n

Apart from helping manage finances, corporate credit cards make compliance and reporting much easier for a growing business that needs to focus on the core business. They also have various perks to offer in terms of rewards and lower charges for international transactions.<\/span><\/p>\r\n

How does a corporate credit card work?<\/span><\/h2>\r\n

A corporate credit card works pretty much like any other credit card. It can be used to make online payments as well as purchases at a PoS in brick-and-mortar stores. <\/span>These payments get registered to the company\u2019s statements, while the owner\u2019s or employee\u2019s personal funds don\u2019t get tangled up in the process.\u00a0<\/span><\/p>\r\n

Here is how a corporate card actually works-<\/span><\/p>\r\n

1. Corporate Liability<\/span><\/h3>\r\n

With standard business credit cards, the business owner is often the one who is liable. This means if the business fails, the owner is personally responsible for the debt. With a corporate credit card, the company is solely responsible for the debt. This protects the founder’s personal assets.<\/span><\/p>\r\n

2. Expense Management<\/span><\/h3>\r\n

Corporate cards are usually tethered to a central dashboard. When an employee swipes a corporate card, the transaction is instantly recorded in the bank\u2019s finance dashboard. This eliminates the need for manual expense reports and allows finance teams to track spend in real-time.<\/span><\/p>\r\n

The card typically has the name of the company as well as the cardholder\u2019s <\/span>name<\/span>. You can get a corporate credit card for yourself or <\/span>for <\/span>employees from <\/span><\/p>\r\n

    \r\n
  1. A card issuing company<\/span><\/li>\r\n
  2. Partnering with a bank or a <\/span>financial services provider<\/span><\/a><\/li>\r\n<\/ol>\r\n
    Apply for RazorpayX Corporate Credit Card Now!<\/a><\/div>\r\n

     <\/p>\r\n

    Corporate credit card vs personal credit card<\/span><\/h2>\r\n

    A corporate credit card has a lot of advantages over a personal one for your business expenses. Here\u2019s how.\u00a0<\/span><\/p>\r\n

    No personal liability<\/b>\u00a0<\/span><\/h3>\r\n

    Every business owner understands that business transactions can get tricky, mainly due to the high transaction value involved. Later, when such a situation arises – using your personal credit card risks your personal credit limit. However, a corporate credit card has no liabilities on the individual.<\/span><\/p>\r\n

    Expense management<\/b><\/h3>\r\n

    As a business, you have complete control and visibility over spends. You can set an upper limit on funds that can be used by your employee. This helps you manage your expenses really well. And, you don\u2019t have to worry about making reimbursements to your employee later on.\u00a0<\/span><\/p>\r\n

    Higher spending limit<\/b><\/h3>\r\n

    Corporate credit cards have a much higher limit on the funds you can access when compared to personal cards or business credit cards. They tend to have dynamic credit limits, depending on your business\u2019 growth. This is a great benefit because as your requirements grow, your credit limit becomes higher.\u00a0<\/span><\/p>\r\n

    No reporting hassles<\/b><\/h3>\r\n

    You can claim all the business expenses paid from a corporate credit card in your profit and loss account. Whereas, personal card users have to audit their statements closely to separate business charges from personal charges. Without much effort, you will be able to claim accurate business expenses and reduce your tax liabilit<\/span>y.<\/span>\u00a0<\/span><\/p>\r\n

    Reduced expense fraud<\/b><\/h3>\r\n

    You get greater visibility of expenses made by your employee when they use a corporate credit card. This helps the audit and finance teams to spot fraudulent purchases and non-business expenses better. Any expense or refund will occur on the same card, which means there\u2019s no room for misuse.\u00a0<\/span><\/p>\r\n

    Better credit score<\/b><\/h3>\r\n

    A corporate credit card helps build your company\u2019s <\/span>credit score<\/span><\/a>. This helps you get cheaper capital in the future. This is an easy and risk-free way to increase your company\u2019s credit score.<\/span><\/p>\r\n

    Corporate Card vs. Business Card vs. Personal Card<\/strong><\/h2>\r\n

    It is common to be confused between personal credit cards, business cards, and corporate credit cards. Here is a brief table explaining the difference.<\/span><\/p>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
    \r\n

    Feature<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Personal Credit Card<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Small Business Card<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Corporate Credit Card<\/b><\/p>\r\n<\/td>\r\n<\/tr>\r\n

    \r\n

    Target Audience<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Individuals<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Sole Proprietors, Freelancers<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Pvt Ltd, LLPs, Funded Startups<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

    \r\n

    Liability<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Personal<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Personal (Joint Liability)<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Corporate (Company Liability)<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

    \r\n

    Credit Limit Based On<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Personal Income & CIBIL<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Personal Credit Score<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Company Revenue,\u00a0 Cash Flow & CMR<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

    \r\n

    Expense Reporting<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Monthly Statement<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Basic Categorization<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    Real-time Dashboard & Integration<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n

    \r\n

    Rewards<\/b><\/p>\r\n<\/td>\r\n

    		\r\n

    Lifestyle or Shopping<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    General Business<\/span><\/p>\r\n<\/td>\r\n

    		\r\n

    B2B\/SaaS\/Cloud Credits and Discounts<\/span><\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

    Benefits of Using a Corporate Credit Card<\/span><\/h2>\r\n

    If you are still wondering why using a corporate card is an optimal choice for your business, here are the key benefits you derive from it.\u00a0<\/span><\/p>\r\n