Almost all credit card issuers offer the option to add certified users to their credit card accounts. This means that the primary account holder can decide whether to leave the purchases to people or to entrust multiple people with the card. This opportunity will also be expanded to the shed. This allows small business owners to determine whether they want to create authorized users with those cards, which will grant them official permission to use their credit card accounts. They then receive cards with their names engraved on them and can use those cards to earn fees.
There are many benefits to adding employees Certified Users Business credit cards also have some drawbacks. Here’s what you need to know:
Benefits of adding authorized users to business credit cards
As the owner of a primary business credit card, you can provide employees with credit cards attached to your account. The number of people you can add depends on the card. American Express Blue Business Cash™ Cardfor example, limit the number of approved users to 99 per account.
and Business Credit Card,A certified user card may be called an employee card. However, to notify the issuer that you are connecting to your account, the person you add is a certified user. Account ownership will not change, so no matter who you charge, you will always be responsible for the bill. Unless you specify an authorized user as an account manager, you will have no other access to non-billing accounts.
Adding employees as business credit card certified users offers many benefits, including:
You can delegate your purchase and lower your refund request
As a small business owner, your time is probably premium. Giving selected employees the ability to buy things for the company will clear the plate so you can focus on other tasks.
Any purchases made by an authorized user with the card will be displayed in your account statement. Employees can track purchases and pay invoices without sending them invoices prior to refunds.
Employees can travel more comfortably
If an employee has a card containing that name, they can book their flight, hotel or car rental arrangements. Also, most publishers extend the benefits of a complete travel to users. Delta Skymiles® Reserve Business American Express Cardfor example, when traveling a Delta itinerary, it provides the same free access to the Centurion Lounge at the airport to those granted users. Many American Express Business Card It also comes with a concierge service that can be used by authorized users.
You and your employees will earn rewards and benefits
When employees pay things with your account, they usually also get benefits related to the card. Inside Best business credit cardsthese perks include travel insurance, purchase protection, extended warranty, car rental insurance, and more.
You can also benefit from employee fees. If you charge your employees things to your business with a personal credit card, you will not be able to earn cashback, points, or miles that your cards earn. However, you will create authorized users in your account. Credit card rewards They get caught up in purchasing them.
You can set the charging limit
It may come with your business credit card Huge credit restrictionshowever, you may not want employees to have full access. Most credit card issuers allow owners to change billing restrictions for authorized users. Ink BusinessUnlimited® Credit Cardfor example, you can set individual spending limits for each employee. This feature can be protected in the event that employees abuse their privileges.
Disadvantages of adding certified users to business credit cards
Of course, there are potential issues with adding authorized users to your business cards. Key drawbacks to consider include:
You may have more potential fees
Many business credit cards allow employees to be added as users for free. However, cards with a luxurious rewards program may require additional users to pay a high annual fee. Business Platinum Card for American ExpressFor example, not only does the card cost $695 a year, but additional additional users will have an annual fee of $195. Check out the benefits and perks to find out if the costs make sense.
You need to handle more complex account management
When adding certified users to a business credit card, you need to address the increased complexity of multiple users. For example, it is best to buy something very expensive with your card, but employees have already made recent transactions that prevent them from making bills. To ensure that these issues do not occur, you will need to communicate with the user or check the available credit lines.
Your employees can break your trust
Even if you set a lower billing limit, employees can still charge up to that amount Leave a debt. You can try to collect from that person, but the credit card issuer will ultimately resort to you for payment.
There is no bonus to add approved users to your business credit card
Some individual credit cards reward you for adding certified users to your account, while most business credit cards do not earn you any reward. If you want a bigger bonus, read the offer carefully.
However, you will earn rewards for the expenditures made by authorized users. Earn a welcome bonus on your card.
You may encounter credit scoring issues
Your account is in your name and will appear in your credit file, Credit score. Credits will be negatively affected if your account is mismanaged due to issues related to authorized users.
But that’s not all.
This card may also appear on employee credit reports, so if you have trouble making payments, your credit could also be adversely affected. This is not the case with corporate credit cards that do not generally appear in personal credit reports.
How to add and remove certified users
Many business owners focus on how to add certified users, but knowing how to remove them is equally important. Employees may decide to proceed from the company or not follow the rules regarding card usage and may need to immediately revoke access.
In any case, the process of adding or removing certified users to a business credit card is the same Personal credit card. It is usually fast and simple and can be done by following these steps.
Conclusion
That’s important Please choose the right business card For your growing business. It is also important to choose the right person to add approved users to your business credit card. Therefore, make sure you are responsible and reliable.
As a small business owner, these shared arrangements can make your life easier and are often a positive perk for employees. What if it doesn’t work? no problem. Authorized users are not permanent equipment in your account unless you wish to be a customer.
