In this article, we will briefly describe the new features of corporate cards, more information can be found on our website https://business.wallester.com
Technological progress in the field of corporate cards is not yet a separate phenomenon from the same process in the market of individual cards. Unless there is a certain caution of banks in introducing the most daring card innovations into cards for additional expenses of corporations - this is due, first of all, to the complexity of accounting and tax accounting and, in general, legislative regulation of company accounts.
However, some new general card trends are already taking root in the corporate card market.
Of the interviewed banking experts, experts named such functionality that financial directors of companies can already ask in banks:
contactless corporate cards: Their issuance technology allows you to make payments almost instantly with a single movement of your hand, in all outlets equipped with contactless readers. In this case, the card does not need to be rolled or inserted into the payment terminal, sign the check or enter a pin code. Moreover, the card can be presented to the contactless reader without removing it from the wallet;
non-monetary accounts that prevent spending on anything other than certain items: “they allow you to store a separate variable balance on the card in the form of, for example, liters of gasoline (the so-called “gasoline application”) for purchase transactions at participating gas stations.
detailed tracking and instant transfer to the financial management of the enterprise by means of Internet banking and mobile banking, not only the amount and time of the transaction, but also the address of the operation, the specifics of the outlet where the transaction was made (and in the short term, the list of purchased goods). This enables the company to immediately build complex structural reporting on additional expenses - without waiting, say, for the return of an employee with checks, invoices or invoices from a business trip.
Corporate card limits and their changes
One of the core topics of the functioning of a corporate card is the issue of limits set for each of the company's corporate cards.
According to banking specialists, the novelties in this area are such opportunities that can be issued both at the “entrance” - that is, when issuing a card - and in the process of using it:
time limits: on expenses during the day, week, month or other time period. “Preset short-term limits – the so-called velocity limits, “quick limits” – is a normal business need, and advanced banks implement it. Modern card processing complexes support this function.
quality limits: this is the number of cash withdrawals at an ATM (for example, five approaches per day), and the maximum amount of cash received per day (separately from paying for goods and services with a card), and the limit on the amount that can be spent in the trade and service network, and combinations of the above. For example, a company prohibits a truck driver with a corporate card from withdrawing cash, but allows settlements in the trade and service network. There are also limits on the use of the card in terms of the territory of use. You can prohibit the use of the card on the Internet, or you can allow it to be used only on the Internet and nowhere else.
multiple cards with a common limit for all cards (with shared access to one limit). As a rule, managers of the enterprise are allowed to use without limiting the amounts. But it may turn out that at the most necessary moment there will be no money in the account, since someone has already used it, which “kills” the idea of using a collective corporate card account in the bud.
Note that when applying for a corporate card, the list of standard limits offered by the default tariff package is not exhaustive. The client company has the right to either change the amount of restrictions or remove them altogether. To do this, the client puts a corresponding mark in the application and already initially uses his account at his own discretion.
It is still “possible, but difficult” to change the limits set when applying for a card, although banks have been working towards simplification for a long time. Changing limits means making changes to the settings of the card account, and allowing the client to change the settings of the intra-banking system is a violation of all possible banking security rules.
In view of this, the main ways to change the limit are as follows:
By visiting the bank in person. This also applies to changes that must occur after a long period of time after the application is submitted.
By phone: Having a system for identifying calls by phone, you can change the limits over the phone. Usually, the functionality of round-the-clock support services provides the ability to change such limits at any time of the day.
Most of the banks have already implemented the change by the company of the limits of their corporate cards using the Client-Bank, Internet banking or SMS (with an identification system)."