Protecting Business Credit Cards
Company credit cards should be issued to employees based on their job descriptions. Those who do extensive travel (cross town or cross country), cover expenses involved with service to clients (i.e., field trips) or are authorized to make emergency purchases in the absence of the executive director would be candidates for a company card. Policies and procedures spelling out what will be reimbursed and up to what limit are good risk management procedures.
New User Instructions
When an employee gets a company card, instruct him or her to:
- Sign the new card as soon as it arrives.
- Treat the card like money. Store it in a secure place.
- Notify card issuer immediately if the billing statement is incorrect or the credit card is lost or stolen.
- Don’t leave the credit card in hotel rooms.
- Don’t leave gasoline credit card receipts at the pump. They contain credit card numbers.
- Don’t leave the credit card unnecessarily visible for long periods of time; the number can be copied even if the card isn’t taken.
- Remember to get the card and receipt after a transaction, and double-check to be sure they’re yours.
- Shred anything with the account number before throwing it away, including pre-approved credit card offers.
- Attach receipts to the expense form so accounting can reconcile claims against the credit card bill.
Company Card Procedures
Put these procedures into practice to protect all company cards:
- If the nonprofit doesn’t receive its credit card billing statement, notify the company immediately.
- Request a copy of the Nonprofit’s credit report every few years. Reviewing your report will tell you if anyone has applied for credit in the name of employees with company cards and if any accounts are being used without your knowledge, with the billing statement being sent to a different address.
- Instigate a policy that no employee is to give a card number over the phone unless the call is initiated by the employee. Employees should always ask why information is needed before providing it.
Reporting Credit Card Fraud or Identity Theft