What is a purchasing card (P-card)?
A purchasing card is a company card for buying the supplies and services a business runs on. This cheat sheet covers how to think about P-cards and what to set before you hand them out. The detail is further down.
How to think about it
- It's for buying, not traveling. In the federal GSA SmartPay program, purchase accounts are for procuring and paying for supplies and services, and travel accounts are for official travel.
- Controls come with it. Issuers offer spending limits and blocks, including limits on where the card can be used and what for.
- Physical or virtual. American Express offers physical purchasing cards for staff away from the office and virtual ones for low-value recurring payments.
- The federal government runs a big one. GSA SmartPay calls itself the largest government charge card and commercial payment solutions program in the world.
Before you hand them out
- Set three kinds of limits. Issuers can cap total spend per cycle, per month and per transaction.
- Block what you don't buy. Spending can be limited to certain industry types, or to specific suppliers on a preferred supplier list.
- Write the procedures down. Federal agencies that use the government purchase card must set procedures for its use and control.
Types of GSA SmartPay accounts
| Business line | What it's for |
|---|---|
| Purchase | Procuring, ordering and paying for supplies and services |
| Travel | Official travel and travel-related expenses |
| Fleet | Fuel, maintenance and repair of government-owned or operated vehicles |
| Integrated | Two or more business lines on a single account |
Questions
What is a P-card used for?
Buying supplies and services. GSA SmartPay describes its purchase accounts as a way to procure, order and pay for supplies and services.
What is the difference between a purchasing card and a travel card?
In GSA SmartPay, purchase accounts are for supplies and services, travel accounts are for official travel and travel-related expenses, and integrated accounts combine two or more business lines.
What is the federal micro-purchase threshold?
The Federal Acquisition Regulation sets it at $15,000, with different limits for some construction, service and emergency-related purchases. Federal agencies can use the purchase card for micro-purchases and, under their procedures, for larger orders and payments.
Can a purchasing card be virtual?
Yes. American Express offers virtual purchasing cards for low-value recurring payments where a physical card is not necessary, like office materials and equipment.
Do you need Level 3 data to run a P-card program?
No. American Express says a Level 1 physical corporate purchasing card can be used at any accepting American Express merchant.
Sources
- U.S. General Services Administration, GSA SmartPay, accessed November 2, 2026.
- Acquisition.GOV (Federal Acquisition Regulation), 13.301 Governmentwide commercial purchase card., accessed November 2, 2026.
- Acquisition.GOV (Federal Acquisition Regulation), 2.101 Definitions., accessed November 2, 2026.
- American Express, American Express Corporate Purchasing Cards (fact sheet and FAQ), accessed November 2, 2026.
- Engine, Direct Bill for Company Hotel Travel, accessed November 2, 2026.