POLICYEmployees shall be given access to a company credit card where the nature of their job requires such use.
Company credit cards may only be used for business expenses and may not be used for expenses of a personal nature.
PURPOSEThe purpose of this Statement of Policy and Procedure is to ensure that company credit cards are used for appropriate purposes and that adequate controls are established for day-to-day use.
SCOPEThe Company Credit Cards policy applies to all employees who maintain a credit card for company use, and their managers.
RESPONSIBILITYIndividuals holding Company Credit Cards are responsible for:
- Using the cards only for their intended purpose
- Retaining receipts and providing explanations for all company credit card transactions
- Obtaining authorization for credit card invoices
Operating managers / supervisors are responsible for:
- Limiting the use of company credit cards to those employees who require a card for company business
- Reviewing and authorizing credit card invoices used by their employees on a timely basis to avoid late payment charges
- Identifying and requesting any credit or transaction-level limits required for individual cards
- Ensuring that all credit card transactions are properly authorized
- Processing payments for credit card invoices on a timely basis to avoid late payment charges
- Arranging credit or transaction-level limits for individual cards
DEFINITIONS“General Credit Card” means a credit card that can be used at multiple establishments, such as VISA, American Express, or MasterCard.
“Supplier Specific Credit Card” means a credit card that can be used only with a specific supplier, such as a gas company or an office supply company.
“Credit limit” means the total amount that may be charged to the credit card before transactions are refused by the credit card company.
“Transaction-level limit” means the total value of any individual transaction that may be charged to the card or the type of transaction that may be charged to the card. For example, some gas companies will allow for “gas only” cards, which deny credit for other miscellaneous purchases at the gas station.
PROCEDURESUse of Credit Cards and Expense Reports
- Credit cards are to be used for company requirements only. Where the supplier has the capability, cards or transactions will be coded to individual employees for greater facility at the time of invoicing.
- Employees must retain and initial receipts and note the purpose of the expense on the back of each receipt.
- Use of company credit cards for expenses of a personal nature of any kind may result in disciplinary action up to and including dismissal. It may result in the expenses being deducted from the employee’s next pay check.
- The employee shall submit the corresponding receipts along with an expense report (Credit Card Expense Report) to the appropriate authorizing supervisor or manager within a week of incurring the expense. Facsimile or scanned documents are acceptable if the employee is on travel and will not return to the office in order to meet the one week deadline, provided that original receipts are presented upon return from travel.
- Charges for items where the receipt has been misplaced must be explained to the authorizing individual who must initial the specific charge and indicate “receipt missing” beside it.
- The authorizing supervisor or manager will confirm that the charges are justified and appropriate before authorizing the invoice for payment by noting “Okay to Pay” and signing the body of the invoice.
- The approved invoice shall be forwarded to the Accounting Department for payment.
- The Accounting Department shall verify the authorization and schedule the invoice for payment according to the terms of the credit card contract, and so as to avoid unnecessary late payment charges.
AGREEMENTI have read and understood the [company name] Statement of Policy and Procedure for having a Corporate General Credit Card. By this form, I give permission for [company name] to withhold (deduct) from my pay check personal items, unauthorized expenses and unreported expenses incurred by me using my General Credit Card.
Employee Signature:_____________________________ Date:____________
Card Number: _____________________________ Expiration Date: ________