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P-Card (Procurement Card, Purchase Card)

What is a P-Card (Procurement Card, Purchase Card)?

A P-Card (Procurement Card or Purchase Card) is a specialized corporate credit card that allows employees to make pre-approved business purchases without going through lengthy procurement procedures. It is widely used for travel bookings, lodging, meals, and office supplies.

P-Cards help companies track spending in real-time, enforce spending limits, and reduce fraud risks through strict policy controls. Unlike traditional corporate credit cards, P-Cards are often linked directly to a department’s budget, ensuring better accountability and compliance with company policies.

In corporate travel, P-Cards simplify hotel bookings, airline ticket purchases, and rental car payments, reducing the need for employee reimbursements. Many businesses prefer virtual P-Cards for enhanced security and limited-use transactions.

Examples of P-Card Usage
1.
A company issues P-Cards to frequent business travelers, allowing them to book flights and hotels directly without personal reimbursements.
2.
An employee uses a P-Card to pay for a client lunch, with the transaction automatically logged in the company’s expense management system.
3.
A finance team sets a spending limit on P-Cards for team members attending a conference to prevent overspending.
Frequently Asked Questions About P-Card (Procurement Card, Purchase Card)
1.
How is a P-Card different from a corporate credit card?
A P-Card is typically issued for specific business expenses with strict controls, while a corporate credit card is more flexible but requires employee reimbursements.
2.
Can P-Cards be used for travel expenses?
Yes, companies often use P-Cards for flights, hotels, meals, and rental cars, ensuring streamlined payments and tracking.
3.
Are there spending limits on P-Cards?
Yes, businesses set custom spending limits based on the employee’s role and the nature of purchases.
4.
How do P-Cards help with expense management?
P-Cards automate expense reporting, reduce the need for reimbursements, and help finance teams monitor spending in real-time.
5.
Can employees use P-Cards for personal expenses?
No, P-Cards are strictly for business use, and unauthorized transactions may result in disciplinary action or card suspension.