How Do Business Credit Cards Differ from Corporate Credit Cards? How Do Business Credit Cards Differ from Corporate Credit Cards?

When you say business credit card, the world of options can be a bit confusing. The largest market for business credit cards tends to be the small business person. And this only makes sense – the small business sector is the driving engine of the U.S. economy and creates the lion's share of new jobs in this country each year. The major issuers of Visa, MasterCard and American Express consumer credit cards have created products specifically for the small business sector and their unique payment needs.



But what are the credit card options for larger companies, non-profit organizations and government organizations that need an efficient method for procurement of goods and services? There certainly are credit card product options for these types of entities, but they are often custom-tailored options provided by certain issuers rather than an off the shelf, prepackaged product. This is why consumers and small business people don't see corporate or fleet purchasing card products advertised in traditional media.

These products are normally sold to client organizations and government entities. The options could best be compared to insurance health plans in that they are provided by large and for large organizations and managed through an assigned account management team to meet the ongoing needs of the client organization. The card payment needs of fortune 500 companies along with large charitable organizations or even city, state and federal government departments can be quite complex. Beyond mere payments capabilities these types of organizations often need to track, review, approve and reimburse their employees travel and entertainment expenses through complex, custom designed software programs that often must interface with human resources platforms.

Another primary distinction between a small business credit card and a large organization corporate card involves payment responsibility. Small business credit cards are issued in the personal name of the small business principal, although his business is jointly responsible for keeping the business account current. Corporate cards are normally issued in the name of the corporation, non-profit or government entity name. As with the nature of the corporate structure in American business law – the corporation is considered an individual and the liability for repayment is placed upon the organization and not the individual or individuals using the cards. The secondary repayment responsibility between the company and its employees is set and enforced using human resources policies.

So, while the differences between the types of credit cards used within the business world can be a bit confusing, it's probably a safe bet to assume any card advertised in the mass media or online is designed for the small business person. If you or your organization needs a small business credit card, you can review a list of business credit card offers from Citibank, American Express and Advanta and apply online for the credit card of your choice.

Are Corporate Gas Credit Cards Considered as Income and Taxable?

My company is offering gas/fuel credit cards to our technicians in lieu of a vehicle allowance. However, HR is advising the techs that the cards are considered income and are therefore taxable. Is this true?

It depends on the type of expense reimbursement plan that you have. If you have an accountable plan, then you must submit expense reports to your employer to verify your gas useage, in which case the gas card use would not be taxable. If your employer has a non-accountable plan, then you use the card, they include the use in your W-2 and then you have to claim the net business expenses or net gas card use income on your personnal tax return.

I need corporate credit, credit cards with no personal guarantees help? I need corporate credit, credit cards with no personal guarantees help?

You can find a complete list of business credit cards here:

http://www.asapcreditcard.com/business-cards.html

Hope this helps. GOOD LUCK!

My company is relatively new and I need to get company phones, a vehicle, etc. Strictly for use by the company and employees.

Usually you will get offers in the mail a few months after you get a Federal ID #. Try your bank, they may have a card. Try Advanta.

How good does your credit have to be for a corporate credit card?

I was just offered a new job. They told me in my new hire packet will be an application for a corporate credit card. If I have bad credit, what will happen here?!?

A coporate credit card is backed by your company in many cases. These accounts are often all linked to one major account. So if that is the case, your credit will not matter one bit.