Licensed consumer on an organization bank card: What to know

Most bank card firms permit cardholders so as to add a number of approved customers to their bank card accounts. The approved consumer receives their very own card, permitting them to make purchases with out the first cardholder current. Enterprise bank cards have related insurance policies, the place the enterprise proprietor or major cardholder can order further playing cards for workers to make purchases on behalf of the enterprise.

A superb instance is the American Specific Blue Enterprise Money™ Card, which permits as much as 99 approved customers (see charges and charges) per account. Normally, these approved consumer playing cards include the worker’s title printed on them.

There are professionals and cons to having approved customers on firm bank cards, so it is necessary to grasp whether or not including one is true for your enterprise. Here is what you might want to learn about including approved customers to an organization bank card.

Bear in mind to set spending limits

As a enterprise proprietor, you are taking on some further threat once you add an worker to your enterprise bank card. Licensed customers are given permission to make purchases with their worker playing cards; nonetheless, the primary account holder remains to be accountable for all costs that happen and for paying off these costs on the finish of the bank card billing cycle.


It is necessary to set spending limits on approved consumer enterprise bank cards, as this protects the primary account holder from costs being racked up with out their approval or exterior of their price range. Most issuers permit the account holder to set worker credit score limits on-line and alter them if an worker must make a big buy.

Advantages of including a licensed consumer to a enterprise bank card

Worker bank cards can permit companies to function extra effectively. If the first account holder is not out there, an worker can nonetheless full vital purchases. The enterprise proprietor can handle bills with out the worker having to submit receipts and procure reimbursements after the very fact.


Including approved customers to an organization bank card may also make it simpler for workers to take care of their very own enterprise journey. Workers can use their playing cards to e book their very own flights, resorts and automotive leases. Normally, card advantages — resembling journey insurance coverage, automotive rental insurance coverage and buy safety — are prolonged to approved customers.

For instance, the varied journey and buy protections supplied by the Enterprise Platinum Card® from American Specific can be found to all cardholders on the account.

If your enterprise bank card earns rewards, you may earn factors at any time when your staff make purchases with their playing cards. It is because the gathered rewards belong to the enterprise, not its approved customers.

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Downsides to including approved customers to a enterprise bank card

Regardless of the various advantages, there might be drawbacks to firms issuing approved consumer playing cards to staff. Here is a more in-depth take a look at some potential disadvantages:


Including a licensed consumer to a enterprise bank card might be pricey. Whereas some enterprise bank cards, such because the Capital One Enterprise X Enterprise card (see charges and charges), permit approved customers to be added at no further price, others cost an annual payment for approved customers. As an example, The Enterprise Platinum Card® from American Specific costs $350 for every further card (see charges and charges).


Associated: Greatest approved consumer bank cards

Account administration

Licensed customers could make account administration extra sophisticated for a enterprise. For instance, a scenario might come up the place the enterprise proprietor desires to make a big buy, however earlier transactions carried out by a number of staff could forestall them from finishing the acquisition because of inadequate out there credit score. When managing approved customers on an organization card, fixed communication concerning the card’s use ought to be mentioned to keep away from such pitfalls.

Associated: Greatest apps for cash administration

Monetary duty

Finally, companies are accountable for all costs on their bank card accounts, together with approved consumer transactions. Even when a enterprise proprietor units limits on their staff’ playing cards, irresponsible exercise or unapproved transactions are the enterprise’ duty within the eyes of the bank card issuer.

Credit score rating

Whereas a enterprise bank card is often opened utilizing an organization’s EIN, it could seem on the enterprise proprietor’s private credit score report. If staff mismanage the account, this will have an effect on the enterprise proprietor’s credit score rating.


Moreover, late or missed funds may also present up on an worker’s private credit score if their social safety quantity was obtained to be added as a licensed consumer, although it is often not the case.

Associated: Enterprise bank card impression on credit score rating

Backside line

Including a licensed consumer to an organization bank card can profit each the enterprise and its staff. Enterprise homeowners can simply handle bills, earn rewards on worker purchases and restrict how a lot every worker can spend.

Workers are lined by sure card advantages, resembling journey insurance coverage and different protections when utilizing their playing cards for enterprise functions.

Keep in mind that the enterprise is in the end accountable for all bank card transactions, together with approved consumer purchases. For that motive, you must at all times preserve observe of worker spending to make sure you do not develop into responsible for incorrect utilization.

For charges and charges of the Amex Blue Enterprise Money, click on right here.
For charges and charges of the Amex Enterprise Platinum, click on right here.

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