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Corporate cards


traveller will have to collect


the paper receipt which must then be entered manually for any data capture or VAT reclaim. You might even want different


card issuers for different travellers. Barclaycard’s Currie says, “Junior members of staff might struggle to pay for food and subsistence in places appropriate for their seniority with some cards. “Cards need to work for all levels of


an organisation. As part of a duty of care you need them to be usable in as many places as possible.” According to David Bishop, senior vice


president global sales at Portman Travel, the future for corporate cards for travel could be quite different if distribution cost-conscious airlines decide to stop picking up the merchant fee on behalf of their distributor, namely the travel management company. This is a longstanding anomaly (after all,


no one expects Heinz to pay the merchant fee when you pay for your weekly Tesco shop with a card) which if stopped, as Bishop believes, could oblige travel management companies to pass the cost onto their clients. That means that old- fashioned invoicing might experience a


PICK A CARD


Who is the card holder? What is it?


Description


LODGE CARD The company


A unique identifier number held at the TMC


All bookings made by a TMC on behalf of a specific corporate client are lodged onto one account for which the client is invoiced on a regular basis.


Who is it best for?


Companies which have a lot of travel purchases for which for one reason or another they do not want individual travellers to be responsible


Advantages


“Our travellers are getting younger and more interested in technology.


They’re doing different things in their private life and want to change it into their work life ”


34 THE BUSINESS TRAVEL MAGAZINE


Promotes compliance because all bookings will be made with preferred partners; only one invoice to pay; full TMC data generated


Disadvantages


Lack of ability to cover expenses means that total cost of trip will not be shown; invoice may be due before travel undertaken.


CORPORATE CARD Individual travellers A piece of plastic


The card is accepted by merchants in payment for travel and expenses and the account is either directly or indirectly paid for by the company.


Frequent travellers


surge in popularity. Bishop explains, “Say the merchant fee is two per cent. That means on a £5,000 club class ticket to the States the airline is absorbing £100 of the cost at the moment. If they turn around and stop paying it and the TMC passes it on, companies will have the choice of 'Do I want to pay it or do I want to pay the travel management company on an invoiced account?'.” In the future the use of mobile


communications for business travel is certain to grow. Yael Klein believes that 'tap-and-pay' may not be for the corporate market but the use of that technology combined with that of virtual cards could be. Conferma’s Raymond says, “Vcards on mobile phones will deal with the paranoia about security as this will allow people to have something that can do what credit cards do but any potential fraud will be limited to the amount of the transaction, not the card limit.” Klein says, “Our travellers are getting


younger and increasingly interested in technology and don’t want the same methodology that their parents used. They’re doing different things in their private life and want to change it into their work life.”


Promotes traveller engagement; covers payment for both travel and expenses


Only suitable for frequent travellers


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