---
title: "Purchasing card (P-card)"
description: "A purchasing card (P-card) is a company charge card for buying supplies and services, with limits and blocks. How purchase cards work and what to set up."
canonical: https://engine.com/glossary/purchasing-card
updated: 2026-11-02
author: "Engine Editorial"
---

# Purchasing card (P-card)

A purchasing card (P-card) is a charge card an organization gives employees to order and pay for supplies and services, with spending limits and merchant blocks it controls.

Also called: P-card, purchase card, corporate purchasing card

Not to be confused with: A travel card

Updated November 2, 2026 by Engine Editorial

## 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 |

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## 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.

## Go deeper

- [Level 3 data](https://engine.com/glossary/level-3-data)
- [Merchant category code](https://engine.com/glossary/merchant-category-code)
- [Corporate card](https://engine.com/glossary/corporate-card)
- [Engine Direct Bill](https://engine.com/features/direct-bill)

## Sources

1. U.S. General Services Administration, "GSA SmartPay," https://smartpay.gsa.gov/about/purchase/, accessed November 2, 2026.
2. Acquisition.GOV (Federal Acquisition Regulation), "13.301 Governmentwide commercial purchase card.," https://www.acquisition.gov/far/13.301, accessed November 2, 2026.
3. Acquisition.GOV (Federal Acquisition Regulation), "2.101 Definitions.," https://www.acquisition.gov/far/2.101, accessed November 2, 2026.
4. American Express, "American Express Corporate Purchasing Cards (fact sheet and FAQ)," https://www.americanexpress.com/content/dam/amex/en-se/business/pdf/fact-sheet/corporate-purchasing-card.pdf, accessed November 2, 2026.
5. Engine, "Direct Bill for Company Hotel Travel," https://engine.com/features/direct-bill, accessed November 2, 2026.