What is a corporate card?
A corporate card is a company card employees use for work spending, usually travel. This cheat sheet covers how to think about one and what to settle before you issue cards. The detail is further down.
How to think about it
- Built for travel and entertainment. Visa pitches its corporate card to enterprises for travel and entertainment spending, with configurable spend controls and data to support policy compliance.
- Who pays the bill is the big choice. With individual liability, the employee pays the balance and gets reimbursed. With corporate liability, the company pays the card balance directly.
- Consumer credit rules mostly don't apply. Regulation Z, the federal Truth in Lending rule, exempts credit extended primarily for business purposes. Its rules on issuing cards still apply to business cards.
- At 10 cards, liability is negotiable. If one issuer gives 10 or more cards to an organization's employees, the issuer and the organization can agree on liability for unauthorized use.
Before you issue cards
- Pick the liability model. Decide whether employees pay the balance and file expense reports, or the company pays the card directly.
- Set limits and blocks. On top of credit limits, providers can let companies block specific merchant categories or limit daily transaction amounts.
- Cap cash withdrawals. GSA lists ATM limits among the controls agencies can use so travel cardholders don't exceed their travel allowances.
- Write down the personal-use rule. Employees should use corporate cards only for work-related expenses, to avoid fraud and keep expense reports simple.
Corporate card liability models
| Model | Who pays the card bill | How the employee is made whole |
|---|---|---|
| Individual liability | The employee | Expense report and reimbursement, subject to company approval |
| Corporate liability | The company | No reimbursement process needed |
| Federal individually billed account | The account holder, the agency or a split payment, per agency policy | The agency reimburses authorized, allowable expenses |
How it works on Engine
On Engine, bookers select an available payment method when they complete a hotel booking. Travel policies can make Direct Bill required, optional or blocked for lodging, flights and rental cars, and lodging policies can separately control Direct Bill for incidentals.
Questions
What is the difference between individual and corporate liability?
On an individual liability card, the employee pays the balance, then submits an expense report for reimbursement. On a corporate liability card, the company pays the balance directly, so employees don't cover expenses out of pocket.
Can employees use a corporate card for personal expenses?
They shouldn't. Corporate cards are for work-related expenses, and many companies have strict policies to keep personal spending separate.
Who is liable for unauthorized charges on a corporate card?
When an issuer gives 10 or more cards to one organization's employees, the issuer and the organization can set liability by agreement. Any liability placed on the employee still has to follow Regulation Z's unauthorized-use rules.
How does the federal government's travel card work?
Under GSA SmartPay, an individually billed travel account is issued directly to an employee, who is responsible for the charges, and the agency reimburses authorized expenses. Agencies also set up centrally billed accounts, generally used to buy employees' common-carrier tickets.
Is a corporate card the same as a purchase card?
Not in the federal program. GSA SmartPay's travel line is for travel and travel-related expenses. Its purchase line is for buying supplies and services.
Sources
- Visa, Simplify business spend with the Visa Corporate credit card, accessed November 2, 2026.
- Electronic Code of Federal Regulations, 12 CFR 1026.3: Exempt transactions (Regulation Z), accessed November 2, 2026.
- Electronic Code of Federal Regulations, 12 CFR 1026.12: Special credit card provisions (Regulation Z), accessed November 2, 2026.
- U.S. General Services Administration, Managing Your GSA SmartPay Travel Program, accessed November 2, 2026.
- U.S. General Services Administration, About GSA SmartPay Program Business Lines, accessed November 2, 2026.
- Engine, What to consider when choosing a corporate card program, accessed November 2, 2026.
- Engine, Company Travel Policy Enforcement, accessed November 2, 2026.
- Engine, Business Hotel Booking With Engine, accessed November 2, 2026.