At first glance, it seems simple and convenient, but the more people use it, the harder it is to track who paid for what and when. Then there are more unclear write-offs, lost invoices, and mismatched expenses, along with an increased risk of errors, abuse, or even fraud.
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According to Julius Ivaška, Director of the Business Service at Urbo Bank, as the business grows, it is important to organize the payment process in advance – clearly allocate payment cards and use the tools offered by banks that allow tracking who, when, where, and how much was spent or can be spent.
“Various situations occur: a personal purchase is accidentally or deliberately paid with the company card, a taxi is paid with the company account linked to the app instead of a personal one. Sometimes the same payment is submitted again for reimbursement, receipts are not saved, or invoices are forgotten to be requested, so after a few weeks no one can say who paid and for what purpose,” lists the Urbo Bank representative.
According to him, ordering additional cards or enabling the necessary settings at the bank is not complicated and takes only a few minutes, but later it can save a lot of time, trouble, and in some cases – money. Therefore, it is better not to postpone such decisions and review the company’s payment procedures now.
Clear card purpose – clear expenses
According to J. Ivaška, when several people use one card, the boundaries of responsibility blur, and it becomes much harder to notice an unusual transaction and clarify its circumstances.
“This does not necessarily mean deliberate abuse – some discrepancies arise from simple disorder, but it also costs the business time and money. Therefore, if the company card is still passed from hand to hand, it is worth assessing whether such a system is still convenient or has become an additional source of risk,” notes the specialist.
The Director of the Business Service at Urbo Bank points out that it is recommended to have separate company cards for different functions or employees, for example: for the manager, business trips, online purchases, or daily operational expenses.
“When each card has a clear purpose, it is immediately visible how much was spent on office supplies, fuel, food products, raw materials, or a particular project. In this case, there is no need to assign each payment separately to a specific employee or figure out who it was intended for. This helps to track cash flows more accurately, notice unusual transactions faster, reduce the risk of abuse, and ensure greater financial transparency. When each card has its user or purpose, expense control becomes much simpler,” shares J. Ivaška.
He emphasizes that a company card, although linked to a legal entity’s account, is not meant to be shared among several employees. It is issued to a specific cardholder, so the card itself, its PIN, CVC code, or other data cannot be passed to another person.
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“If several employees need to make payments on behalf of the company, each of them should order a separate card, not share one common card. This way, each payment is immediately linked to a specific cardholder, and if their position changes or the employee leaves the company, the card can be blocked,” says the Urbo Bank representative.
J. Ivaška adds that additional cards do not necessarily mean high costs. For example, the standard Urbo Bank business card administration fee is 2 euros per month, issuing it at a bank branch costs 6 euros, and no additional fee applies when sending by regular mail. With some business service plans, additional payment cards are provided free of charge.
“When deciding how many cards a company needs, it is important to consider not only their price but also how much time it takes to track payments and what risks arise when several people use one card,” he notes.
Additional protection for company payments
According to J. Ivaška, properly selected card settings also help better control company payments. Each card can have daily and monthly transaction limits set, and unnecessary online or contactless payments can be disabled. This leaves only the card functions that are truly needed, reducing the chances of misuse.
“If a card is issued to an employee for a specific purchase or certain expenses, its limit can be adjusted to the expected amount. For example, if up to 300 euros is planned to be spent, that limit should be set. This helps to stick to the budget and reduces possible losses if the card is lost or its data leaked,” explains the Director of the Business Service at Urbo Bank.
Another measure is notifications about transactions in the company account. In internet banking or the mobile app, you can set an amount that, when exceeded, will trigger a notification about the money withdrawal via the app, SMS, or email.
“Such a notification does not stop the payment – the alert is received after the deduction. However, it allows you to notice an unplanned or unusually large transaction faster. In such a case, you can quickly clarify the payment circumstances and, if necessary, block the card,” says J. Ivaška.
It is also worth reviewing the rights granted to employees in internet banking. For example, it is possible to set that the accountant prepares the payment, but it is executed only after the manager approves it. According to the Urbo Bank specialist, this way everyone performs their function, and the risk of incorrect or unauthorized payments is reduced.
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