Finance News & Insights

Company credit cards: Relaxed rules could lead to more headaches for you

Put your road warriors on alert: They’re going to have to keep an even closer watch on their company credit cards during their business trips.
That’s because you’re going to have one less fraud prevention protection.

As of April 13, both American Express and Mastercard no longer require signatures for purchases where people checkout in person. (Visa said it will let North American merchants choose whether or not to require signatures starting this month.)

And that could make some headaches for you.

You can thank chip technology for this change – card companies say it’s no longer necessary to sign on the dotted line as their fraud prevention capabilities have advanced so far.

3 ways to keep your company covered

But if one of your business travelers loses a card on the road, it’s going to be that much easier for someone to make purchases on your company’s dime. In light of these changes:

  • Require that employees alert A/P the second they’ve lost a card
  • Have A/P scour card statements even more carefully, and
  • Be sure your p-cards have spending limits built in so a missing card can’t be abused.
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  • Bill Hinton

    A highly effective solution is utilization of virtual cards which can easily be set for the given use-case. For example, Salesperson traveling for customer or prospective customer meeting(s) has a defined date vcard via mobile device where travel expenses are defined, included meals and incidental, approved and upon trip completion tracked to the specific activities and dates with the vcard expiring as defined. The addition of virtual card through Travel Management platforms further simplifies overall management, essentially eliminates fraud and can provide meaningful rebate revenue. Corporate Spending Innovations is a FinTech market leader and the perfect choice for improving travel management (www.corporatespending.com)