Travel Card Basics

What are Travel Cards?

A Travel Card, sometimes referred to as Corporate Card or Travel & Expense (T&E) Card, is a type of Commercial Card that allows organizations to manage travel spend most effectively. Travel Cards are issued to employees for the purchase of approved, business-related travel expenses. In the simplest terms, a Travel Card is similar to a consumer credit card, however, unlike P-Card reconciliation and payment, Travel Cards can take a variety of forms in the way settlement occurs and reporting occur.

Why Use Travel Cards?

Travel Cards offer process efficiency and control providing employees with a convenient way to pay for business-related travel expense. They also minimize risk while eliminating cumbersome internal processes related to managing, tracking and accounting for travel expense. In addition to process savings and control aspects, they also allow the organization the ability to manage Duty of Care, enforce travel policy and provide an enhanced experience for business travelers.

Program Implementation Overview

As your organization develops or refines a Corporate Card program, key aspects to address are:

The first two bullets tend to be influenced by internal culture. Some questions to explore include:

Do you want to support employees' desires to optimize their personal credit card rewards through personal card usage? Conversely, do you want all business travel expenses to be captured through a Corporate Card program? The latter would allow your organization to more easily view travel spend and subsequently pursue contracts for discounted pricing (e.g., selected hotels and car rental agencies).
Do you want employees to be responsible for paying the issuer? Conversely, do you want more control over payments to the issuer to maximize any revenue share (rebate) incentives offered? To what extent, if any, should employees have to pay out-of-pocket initially and then be reimbursed for approved travel expenses?

Also consider your current travel-related processes and how they align (or will align) with the Corporate Card program, for example:

Do you utilize a travel management company (TMC)? How is the TMC paid? How can Corporate Cards be incorporated into travel reservations, such as airfare?
What technology systems do you use for travel reservations, expense reimbursement and accounting? What technology is used for Corporate Card transaction reconciliation and how does it integrate with the other travel systems? Does your current technology provide reporting options to help your organization meet internal requirements and those related to tax compliance?
Who is responsible for travel expense management? Do (or will) the same staff have a role with Corporate Card program management?

Consider your answers to the above questions when revising your travel policies and evaluating the different options for Corporate Card program liability.

Additional Resources

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End-User Perspective—Southwest Airlines

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