How To Reduce Corporate Credit Card Overspending

business Credit Card Expense Reports Reduces Fraud and Spend

Corporate credit cards can be useful, but traditional cards leave the door open to overspending and fraud.

For example, in 2019, a tech analyst used his corporate credit card to pay $21,000 at an adult club. He submitted the expense to his company without even thinking. Needless to say, his employer was not pleased and ended up suing him!

Corporate credit card overspending is always a risk for businesses. Organizations with hundreds of employees spend endless hours reviewing and auditing credit card expense reports. But even then, it’s difficult to be 100 percent sure that every reimbursement or expense is accurate.

Corporate credit card overspending can drain thousands of dollars annually, putting any business in jeopardy. Plus, outdated expense processes drain energy, effort, and resources — without guaranteeing accuracy.

A modern solution with the ability to issue clear reports in real time can help businesses navigate these risks.

Credit Card Expenses and COVID-19: Employee Spending Sprees

COVID-19 caused a shift to remote working all around the world. Remote working reduces costs and overhead, so for the most part employers were happy to provide resources for employees to work productively from home.

Unfortunately, access to corporate funds was too much of a temptation for some people.

According to Oversight’s Spend Insights Report (Nov. 2020), fraud increased by 57% between Q2 and Q3 in 2020. Most of the violations were unauthorized expenses for buying computers and electronics (i.e., someone from your customer support team buying a portable speaker under the guise of office supplies).

The report highlighted risky and irregular buying habits and purchases by employees worldwide. Moreover, the massive volume of expenses exposed businesses to twice as much risk in Q2 2020 compared to Q2 2019.

Reviewing your credit card expense reports is not enough to track violations. Businesses need to be more proactive in dealing with fraud and tracking expenses to ensure accurate reimbursements.

Here’s how you can cut overspending and streamline your credit card expense reports.

How to Cut Overspending and Streamline Expenses

Use Virtual Cards

Using virtual credit cards instead of physical ones is a great way to reduce overspending. Providers like Mesh create customized e-credit cards with personalized limits and spending rules. Businesses can also create one-time cards to pay for approved expenses.

Mesh virtual credit cards give you real-time visibility into employee expenses as they happen. You don’t have to wait till the end of the month to get your expense report. Businesses can be notified of suspicious expenses instantly and take action right away.