Feature: Corporate cards
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professional bills over the past year, with 43 per cent using their own overdrafts. Says John Wright, chairman of
the Federation of Small Businesses: “Many companies are having to become more self-reliant as they are struggling to secure credit from banks, some deferring payments on a more regular basis. It is important that this worrying practice is brought to an end.” Here, the travel management company has
“Card issuers are increasingly aware of the financial issues SMEs face and are designing products to address their problems”
Merry continues, “Companies will often ask staff to pay for an air fare on a personal credit card and then claim it back on expenses. So someone in the company is having to account for the ticket, and another is dealing with expenditure related to the journey.
an important role to play. One who could help sort out the situation is Brian Merry, director of ancillary products at HRG. With a wealth of experience in the industry, he
has helped design cards with several issuers, including Diners Club and Barclaycard, and gives presentations to card companies, banks and business travellers. He also offers expert advice to clients on the choice of corporate card and implementation processes. “We would never go into a company with preconceived ideas or bias,” says Brian Merry. “We point out that there is no one-size-fits-all card, listen to specific requirements, and advise on the one best suited to the company's needs from a range of alternatives. We also tell them that a corporate card is not merely a payment method but also part of process re-engineering,” he explains.
“With a corporate card, the whole process is simplified: all T&E costs go on to it, the user pays the issuer, and the boss authorises reimbursement. A card can also help a company’s overall standing with their bank, because issuers see it as an extension of their relationship,” says Merry. Card issuers are increasingly aware of the financial issues SMEs face and are designing products to address their problems. The British Airways American Express Corporate Card Plus, for example, rewards small company users, providing both the individual and the employer with the chance to earn On Business Bonus Points for BA flights and upgrades. Says Mimi Kung, vice-president and general manager, commercial card American Express: “Through this card we give SMEs access to travel savings that have typically been the preserve of larger companies. Furthermore, through the card’s expense management tool,
small business leaders gain greater insight and visibility of their corporate expenses. “BA Miles are a great reward for employees
and promote real adherence to travel expense policy as they encourage them to utilise their corporate card for all business-related spend, as opposed to using other forms of payment.” Note the recurrent theme of a company’s ability to mastermind staff T&E spend within the limits of a travel budget when they use a corporate card. Matthew Lanford, head of prepaid, MasterCard Europe, stresses this aspect again in respect of his operation. “Prepaid travel cards are regularly used by holidaymakers as a more flexible and safer alternative to travellers’ cheques and cash,” he says. “Now, businesses are increasingly adopting reloadable prepaid travel cards as a secure and convenient method of funding employees’ travel.“ Lanford continues, “This trend is primarily driven by the need to make savings. The administration of business travel operations can represent a significant cost to businesses, and prepaid cards are helping to ease the control of expenses, both within the UK and overseas too.” With a range of cards suited to the requirements of every customer, our flexible friend has been welcomed into the corporate family, an indispensable ally in a tough economic climate.
58 I THE BUSINESS TRAVEL MAGAZINE 18 I THE BUSINESS TRAVEL MAGAZINE
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