Corporate cards in France: Features, benefits, and costs

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  1. Introduction
  2. What is a corporate card?
    1. Is there a difference between a premium and a standard corporate card?
  3. The different types of corporate cards
  4. What can corporate cards be used for?
  5. Who can use a corporate card?
    1. Requirements for obtaining a corporate card
  6. Pros of corporate cards
  7. Cons of corporate cards
  8. How to choose the right corporate card for your business
  9. How much does a corporate card cost?
  10. How to apply for a corporate card
  11. How to manage corporate cards

Corporate cards are a payment solution that is gaining popularity among businesses of all sizes. They can be used for a wide range of expenses and are valuable financial management tools, helping you better control costs, simplify accounting, and empower your teams.

To choose the right corporate card, consider your company’s requirements and situation, the types available, the features and services offered, and the associated outlays. This article will explore what you need to know to make the best decision for your business.

What’s in this article?

  • What is a corporate card?
  • The different types of corporate cards
  • What can corporate cards be used for?
  • Who can use a corporate card?
  • Pros of corporate cards
  • Cons of corporate cards
  • How to choose the right corporate card for your business
  • How much does a corporate card cost?
  • How to apply for a corporate card
  • How to manage corporate cards

What is a corporate card?

A corporate card is a payment card associated with a business bank account and issued to executives or employees of a company. It allows the holder to cover work-related charges—travel, accommodation, meals, or office supplies—without having to advance the funds using their own money.

The business is liable for the corporate card balance, and its accounting department tracks and manages the transactions charged to the card.

Is there a difference between a premium and a standard corporate card?

Yes. Both are issued to businesses, but premium versions suit large enterprises, while standard cards are more tailored for small to medium-sized businesses. They work similarly but offer different services and features, with corporate cards typically providing more premium options.

These cards also differ from business-issued payment cards, which charge transactions to the employee’s account. In this case, the staff member needs to submit expense reports. These payment methods differ from expense cards dedicated to purchasing supplies and services from approved vendors.

The different types of corporate cards

There are various categories of corporate cards:

  • Debit options, including immediate debit, deferred debit, and preauthorized cards
  • Credit cards, which are tied to funds rather than to the company’s bank account
  • Prepaid cards. where businesses top up monthly
  • Virtual cards offering the same features as physical ones

Debit cards are the most common type of corporate card. Based on the variant (immediate, deferred, or one with mandatory authorization), transactions hit the business’s bank account at the time of purchase or periodically, typically on the last day of the month. Payments with preauthorized cards go through only if the balance is sufficient—the system verifies funds with every transaction.

Each type of corporate card brings specific benefits:

  • Immediate debit cards are the easiest to use
  • Preauthorized debit options prevent spending beyond set limits
  • Credit cards typically offer extra protections and rewards
  • Prepaid cards are limited to certain cost categories, allowing businesses to control staff spending better
  • Virtual cards can be created instantly and added to a digital wallet

What can corporate cards be used for?

These cards can cover a wide range of business expenses, including:

  • Transportation and travel (buses, cabs, trains, planes)
  • Tolls
  • Lodging
  • Meals
  • Equipment (hardware, supplies, clothing)
  • Training
  • Telecommunication
  • Remote-work outlays

It’s not possible to list all the business expenses that corporate cards can cover. Any charge might be considered work-related, depending on the nature of the activity. It’s up to the business to determine what costs are eligible.

Who can use a corporate card?

Any executive, manager, or employee can be issued a corporate card, based on the business’s needs and capabilities. This lets staff cover work expenses without using their funds. These cards help executives keep professional and personal spending separate.

Requirements for obtaining a corporate card

To obtain a corporate card, the business has to be a company with share capital (SARL, SCI, SAS, EURL). It must open a corporate bank account as soon as it starts operating so it can receive proof of deposit from the issuing institution.

Self-employed workers could be eligible if their annual turnover exceeds €10,000 for two consecutive years.

Pros of corporate cards

Corporate cards offer numerous advantages to businesses and their staff, including enhanced expense management, simplified accounting, increased employee autonomy, advanced payment security, and more.

Business expense management
The corporate card is a financial oversight tool that helps executives and staff control expenses and manage the organization’s cash flow. Implementing a spending policy allows businesses to limit eligible charges or set role-based caps for each user.

This ensures greater control over the amounts and types of outlays incurred, making expense tracking easier. Using corporate cards provides valuable insights into spending patterns, letting organizations fine-tune their budget strategies and authorizations accordingly. For instance, a business might cut certain expenses, raise caps for some employees, or expand the list of eligible costs.

No use of personal funds
A corporate card lets executives and staff charge work-related costs directly to the business’s account, eliminating the need to pay out of pocket and wait for reimbursement. With these cards, team members no longer have to submit expense reports—saving valuable time and reducing potential errors.

Keeping professional and personal transactions separate is especially helpful for self-employed workers, preventing mixups and simplifying bookkeeping.

Employee empowerment
Corporate cards are an effective way to empower employees. They can handle their expenses without requesting and waiting for manager approval, saving time and boosting productivity. This autonomy also promotes trust within the organization and bolsters the business’s reputation as an employer.

Simplified accounting
Corporate cards make accounting significantly easier—all the expenses are centralized in the business’s bank account and recorded automatically. Every transaction is stored, simplifying tracking and improving cash flow management.

Employees don’t need to use their own money upfront, eliminating most reimbursement processes. Gathering and processing paper expense reports and receipts are not required, freeing up time for accounting teams to focus on more productive tasks.

Payment security and user protection
Corporate cards typically come with insurance, such as coverage for theft or loss, as well as travel perks (including protection for card or phone theft, personal liability, and cancellation coverage, among others).

In the event of misuse or fraud, the business can quickly identify the employee or profile linked with the corporate card and take action to mitigate risk. For example, it can block the account and adjust spending limits right away. These cards also offer advanced security features safeguarding sensitive corporate information.

Customized services and rewards
Corporate cards are often bundled with valuable banking services (no interest, higher payment limits, overdraft authorizations, professional insurance, access to special loans, dedicated customer support, etc.). They also typically contain extras such as discounts and special deals.

Cons of corporate cards

Corporate card drawbacks include fees, caps that might be too low, and the risk of loss, misuse, or fraud. To ensure proper utilization, continuous monitoring, a clear user policy, and stringent controls are key.

How to choose the right corporate card for your business

When selecting a corporate card, businesses must consider their specific requirements, budget, and financial behavior, as well as staff expectations. The card’s features, advantages, and outlays also merit review.

Here are some questions to ask before making a decision:

  • What are my business’s needs?
  • How many employees will require a corporate card?
  • What are the work-related charge categories?
  • What type of card is best suited for my business?
  • How often will the cards be used?
  • What budget must be allocated to each card?
  • What are the card’s configurable settings? (Spending limits, geographical restrictions, eligible expense categories, etc.)
  • What services does the card offer? (Customer support, real-time tracking, integration with accounting software, insurance, loyalty program, etc.)
  • How much does the corporate card run?
  • What are the charges for using the card? (Transaction fees, commissions, etc.)

How much does a corporate card cost?

On average, corporate cards run between €80 and €200 per year, depending on the financial institution, the card type, and the features and benefits included. Be sure to factor in any applicable charges, such as processing fees, withdrawal fees, chargeback fees, and account maintenance fees, among others.

The corporate cards typically recommended for very small and small businesses are often more affordable than those that include a range of premium services and advantages. Make sure to compare the offers from various financial institutions or service providers.

How to apply for a corporate card

Depending on the size of the business, corporate card applications are handled by the chief executive, the management team, or the finance department. Here’s what they’ll need to do:

  • Ensure the organization meets all legal requirements (share capital company, dedicated bank account, etc.).
  • Select the best-suited corporate card based on how it will be used, its costs, and its benefits. Options cover debit cards, credit cards, and other payment methods.
  • Submit the required paperwork. The application must contain corporate documents, financial statements, and spend forecasts, among other relevant papers.
  • Wait for the institution to process the application.
  • Once approved, configure the cards according to the business’s needs in terms of spending limits, expense categories, etc.

How to manage corporate cards

After issuing corporate cards, the business tracks outlays, enforces spend policies, and—if using credit cards—pays off the balance promptly.

Efficient corporate account management ensures superior oversight into credit card usage, helps prevent misuse, and enables card transactions to be accurately reflected in other financial records.

Here are some best practices for corporate card management:

  • Draft an expense policy and a reconciliation process
  • Set credit limits
  • Train employees to use the card
  • Integrate the card into the accounting software—automate tracking and expense reporting
  • Monitor card activity to spot errors or unauthorized charges
  • Study spend patterns to identify saving opportunities
  • As your business grows, regularly review and update corporate card policies to reflect changes in spend requirements or financial strategies

With Stripe Issuing, administering and managing your corporate cards becomes convenient and straightforward, regardless of your organization’s size. Issue physical or virtual debit or credit cards in just a few clicks, with no setup fees; create management programs and control user spending, and monetize your cards to simplify operations more efficiently.

The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.

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