Today, banks are developing special credit products not only for individuals, but also for corporate clients. For example, to pay for household expenses, you can use corporate credit cards.
Types of Plastics
Under the law, entrepreneurs can use payment and credit cards. If the former are used to make payments using the funds of the enterprise itself, then corporate credit cards provide for the ability to pay with the creditor's money.
Name plastics are issued for each employee. F. I. O. is indicated on the front side. Other persons are not entitled to use the card. Name cards are issued to the company. Any employee from the list of accountable ones can use this plastic. In the event of his dismissal or the receipt of a new person, he will not have to reissue the card.
In practice, organizations often order debit corporate cards tied to a separate account. For the safety of funds, a limit is additionally prescribed for each operation. The cash of the card account is separated from the fixed assets of the organization. Therefore, to replenish the balance, you need to transfer money to a special account each time.
Are there corporate credit cards in the assortment of Russian banks? Yes. But they are less in demand. But in Western countries, organizations prefer to use credit cards to pay for current expenses. Therefore, banks serve such products on more favorable terms.
Destination
Corporate credit cards are a payment instrument tied to a legal entity, which is designed to pay current expenses of the organization at the expense of borrowed funds. Such cards greatly facilitate the activities of enterprises, especially in the initial stages. With the help of plastic, you can pay expenses associated with the economic and main activities of the company, including overhead, representation, transportation, travel expenses. However, these funds cannot be used for social payments and payroll.
For example, sending an employee on a business trip, the accounting department calculates the cost of the flight, hotels, per diems and issues a report. At the end of the trip, the employee reports on the use of money, providing checks, receipts. The process drags on even longer if you need to return extra cash to the cash desk or get what the employee spent on unplanned expenses. If any of the documents is lost, then the accounting department will have problems with debiting funds. You can simplify the settlement procedure using corporate cards - credit and debit.
Statistics
In Europe, they have long abandoned paper operations and switched to cashless services. In Western countries, corporate cards are becoming the main tool for paying hospitality expenses. According to the GBTA BTI Outlook report, in 2014 nearly $ 1.2 trillion was spent on business trips around the world. Of this amount, approximately $ 25 million was spent by Russian citizens. Therefore, it is not surprising that this financial service is rapidly expanding and becoming available to customers.
In 2015, 1.106 trillion were already spent on business trips. dollars, and in 2016 - 1.15 trillion. dollars. According to preliminary miscalculations, this figure will increase by 3.7% annually and will amount to 1.657 trillion by 2026. Doll.
Most of the funds (89%) were spent in the Asia-Pacific region, western Europe and North America. Among the countries for business tourism, the USA and China are the leaders.Followed by Japan, Germany and the United Kingdom. Russia is in 11th place. According to preliminary estimates, by 2020, the volume of business trips to the Russian Federation will reach $ 18.4 billion.
Features
- Like a regular card, a bank sets a certain limit on a corporate payment instrument, which is specified in the contract.
- As for appearance, corporate credit cards, in addition to the name of the holder, also have the name of the company.
- The card holder must be an individual who is an authorized person of the company and has the right to make payments. Plastic is attached to the account on which the funds of the company are intended for hospitality or business expenses. By functionality, corporate cards are no different from ordinary cards.
- To apply for plastic, an enterprise needs to conclude a service agreement that records information about employees who can use the company's funds. Additionally enclosed are employees' applications for the issue of cards.
- At the request of the client, several cards can be attached to one account.
Corporate Credit Cards: Organizational Benefits
Enterprises are reduced time spent on the issuance of accountable amounts. There is no need to receive cash at the bank each time, to carry out their delivery and storage.
Corporate credit cards (Bank of Moscow and other financial institutions provide such a service) can be used abroad. It is not necessary to open an additional currency account and draw up a declaration. Funds will be automatically converted to the desired currency when debiting.
An enterprise can set limits on all operations and activate SMS informing in order to control employee spending. You can top up your account, increase the limit, make purchases on the Internet, and withdraw funds through ATMs at any time of the day.
At the request of the organization, the bank will provide a detailed statement so that the accounting department can track the targeted use of funds. Especially for this purpose, Visa has developed the IntelliLink Spend Management interface. With it, you can get a report on the use of funds in a format convenient for the company. As a result, the employee will be able to prepare a report faster, and accounting will be able to control the staff. An employee will not be able to receive funds if he has not reported on the previous amount.
In accordance with the instruction of the Central Bank No. 1843, cash payments between individual entrepreneurs and organizations under one agreement cannot exceed 100 thousand rubles. For corporate card holders this restriction does not apply.
Among other advantages, it should be noted such:
- If the plastic is lost, then it can be blocked at any time of the day. In this case, the risk of theft of funds is reduced.
- Corporate cards are a good alternative to a checkbook.
- Banks can connect bonus programs and discounts on individual transactions.
- Monthly account maintenance can cost 900-1,000 rubles. However, banks may establish requirements for a minimum minimum balance in the account.
Virtual cards
Typically, banks offer the issuance of corporate cards for individual employees. If the organization has a need for centralized payment of expenses, then you can use the product from the Visa payment system - Central Travel Account. This is a corporate virtual card, which is issued for the entire company. Its advantage is that you can set limits on operations and outline a circle of preferred service providers. But most importantly - a virtual card does not exist in nature. It cannot be scanned, stolen or lost. This is just a number. In Europe, such cards are served in the same way as regular credit cards: for all operations, a grace period of 50-60 days is provided during which the client does not pay a commission for using the funds.
In general, the presence of a corporate card significantly saves enterprise resources.There is no need to keep a large accounting staff for cost accounting. However, in the Russian market this product is not developed. Some organizations have not even heard of him.
Registration
After choosing a banking product, you should conclude an agreement on the issue and maintenance of the card. To compile it, the bank may require the following documents:
- a list of persons who will use the funds;
- statement of each of the accountable persons;
- powers of attorney from the organization to cardholders;
- standard documents required to open an account.
Sberbank
Sberbank corporate credit cards are issued by MasterCard Business and Visa Business payment systems. These are nominal plastics intended for non-cash payments and for withdrawing funds from ATMs around the world. Plastic holders can apply for "Insurance of funds" or "Travel insurance" policies.
What are the conditions for issuing and servicing corporate credit cards? Plastic is produced and maintained free of charge, provided that the daily turnover of funds does not exceed 100 thousand rubles. Account replenishment is carried out without commission, but within the limits of 100 thousand rubles. per day. The limit for withdrawing funds through an ATM is 300 thousand rubles.
To use the service, an enterprise needs to open a special bank account and tie up corporate credit cards to it. Next, a special application for the release of plastic is filled. The organization independently assigns a spending limit to each employee and provides the bank with a register of accountable persons. Since the card is supported by a special account of the organization, each time before using the funds, the accountant must replenish the card balance.
Citibank
Citibank produces two types of corporate credit cards: MasterCard Silver for full-time employees and MasterCard Gold for management. Plastic holders can pay for goods and withdraw funds worldwide. 24-hour access to the account is open through online banking and CitiPhone. The product is available to residents and non-residents of the Russian Federation.
Promsvyazbank
The credit institution issues VISA and MasterCard Worldwide. An account can be opened in three currencies. The monthly maintenance fee ranges from 200-300 rubles. The Bank has set a limit of 500 thousand rubles. to issue funds through ATMs around the world. Additionally, for cashing out funds is debited from the account 1.4%. Cashless payment transactions are not charged. Another advantage of the product is that plastic is available for 4 years. For comparison, VTB corporate credit cards are valid only 2 years from the date of issue.
Raiffeisenbank
Some banks also develop bonus programs to attract customers. For example, holders of a co-branded card Zelenski Loyalty Pass receive 1 point on a special account for every 100 rubles spent. For accumulated bonuses, you can buy tickets, book hotels, tours, etc.
Conclusion
Thus, corporate cards in use are no different from conventional payment instruments. All operations are set limits. Access to funds has a limited number of persons.