What does Corporate card mean?
This card type was devised for businessmen and corporate executives. They use it to help them separate their personal charges from their business expenses. These cards are well sought after, and they are not only practical but beneficial too, often corporate cards offer rewards that are business oriented, like travel benefits and discounts.
There are two types of corporate cards, they can be credit type cards or they can be charge type cards, depending on the company that issues them.
The difference between these two types is that a charge card is a type of payment card which requires the user to fully pay the charge in full each billing period, by the date inscribed on the statement. Charge cards differ from regular credit cards, which enable clients to use a revolving line of credit. This kind of credit can be paid down over a set period of time and can be accessed at any time. The balance on charge cards is not allowed to be carried to the next billing period.
This card typically charges no interest and requires the consumer to pay his or her balance fully upon receiving the billing statement in the specific month. There are some similarities between the charge card and the credit card, but the main difference and a major benefit is that the spending limit of the charge card is much higher, it can even be unlimited.
Corporate cards can also have special featured enabled to limit or even prevent the use of the card at certain types of establishments.