Use of credit cards for purchasing

Many banks market purchasing cards as a cost-effective way to manage and monitor routine purchases by employees, especially those working in the field. The regular reporting and dollar limit of such cards makes them a handy tool.

However, access to credit also can make spending too easy. Even diligent employees might find it hard to control expenditures because reporting is always after the fact. And, unfortunately, less-than-diligent employees find it easy to spend more freely.

If you use purchase and credit cards for purchasing by employees, maintain specific rules for their use, insist on regular reporting, and perform monthly accountability reviews.