Understanding P-cards: A Comprehensive Guide

Business travelers should deal with tickets and hotel booking, car rental alongside financial issues of the trip. P-Cards is a perfect solution for the difficult financial systems of modern companies with an upgraded instrument for managing expenses. Which advantages do they have? What should you know before starting using P-Cards? Read our text and learn the core aspects of a corporate purchasing card.  

Is a P-Card the Same as a Credit Card?

P-Cards and corporate credit cards have a lot in common. However, they’re quite different. A corporate credit card is designed for a wide range of expenses within MICE tourism, including travel, accommodation, meal plan, etc. As for corporate purchasing card, it’s used for certain transactions, such as purchasing office supplies or paying small bills, and is restricted to types of expenses.

Both cards are aimed at reducing administrative routine and improving efficiency, but P-Cards focus on procurement rather than general expenses. How does it work in practice? For example, a traveler using a company procurement card can rent a vehicle or pay for a conference ticket, whereas a corporate credit card may cover only hotel rooms in business travel.

What Is a P Credit Card?

A P-Card is also known as a corporate procurement card. This is a company’s financial instrument for employees. Its main goal is to simplify procurement and expense management by decreasing the purchase and reimbursement processes.

Why do companies apply P-Cards in their activities? There are several reasons for such decision: 

1. Optimize the workflow of accounts payable departments.
2. Increase control over spending on corporate travel service by setting limits and establishing categories.
3. Provide detailed transaction information to improve internal processes.

As for business travelers, P-Cards guarantee faster processing of work-related expenses. There’s no need to have cash or use your own money for business services, which makes traveling much easier.

What Are the Disadvantages of a P-Card?

Alongside pros corporate procurement cards have certain cons:

1. Risk of misuse. Without a strict control employees might use P-Card for personal expenses or unauthorized purchases. This automatically causes financial damages for business and requires time and resources to resolve.
2. Lack of personal control. If personal credit cards are controlled by their holders, P-Cards are monitored by companies through limits and restrictions. Business travelers are restricted in spontaneous purchases and even in last-minute booking tickets.
3. Strict company policies. Usually companies follow complex rules in relation to transactions within a corporate purchasing card. For example, personal items are often prohibited.

Who Uses P-Cards?

Corporate purchasing cards are usually issued for employees making business-related purchases. Above all, these tools work perfectly for frequent travelers. Employees definitely benefit from the convenience of having a proven payment method while they’re on a business trip. Furthermore, the company benefits from the upgraded control over spending. 

Undoubtedly, it’s important to choose the best options of accommodation, car rental, tickets and so on. Be sure that you’ll find them on our service for organizing business trips.