P-cards were created in response to the limitations of credit cards. Business credit cards are vulnerable to fraud, they’re inefficient for expense tracking, and they aren’t very flexible. P-card use is designed to counter these problems.
One of the primary benefits that purchasing cards have over business credit cards is that they’re a lot more secure. For starters, you aren’t sharing one card between all of your employees, which of course poses a security risk; the more people have access, the more likely you are to fall victim to fraud or theft.
Numerous physical P-cards can be issued to a variety of employees, and you are able to set rules and spending limits in order to have greater financial control. This way, you always know who’s spending what, and because purchasing cards are connected to an online platform, every transaction can be viewed at any time.
Alternatively, if an employee is carrying out a transaction online, the individual can be given a single-use virtual card. The employee makes a transaction request, you receive a notification of this request, and you can approve it in a click. The employee will then be assigned a unique virtual card with which they can carry out the purchase.
Whether they’re physical or virtual, a purchasing card is much more secure than a credit card. This is especially the case for online purchases, as those specific virtual card details will cease to exist after the transaction has been completed.
Perhaps the only downside to P-cards is that many of them must be paid off at the end of each month. This means if you don’t have the funds to do this, you could be handed a late payment fee. This is a risk that some businesses can’t afford to take.