P-cards, also known as purchase cards or procurement cards, are commercial cards companies issue employees for business expenses. P-cards enable employees to spend company funds without going through a typical accounts payable process.
Depending on the P-card policy companies set, employees can purchase anything from cups of coffee to hotel rooms. Because of the P-card’s rising popularity for controlling employee spending, experts predict the P-card market to grow by over 8% between 2018 and 2023.
On the surface, corporate credit cards may seem like an ideal solution for companies; employees will be familiar with the cards' functionality since they mirror a personal credit card. And, like P-cards, corporate credit cards enable employees to access corporate funds. However, the way companies keep track of cardholder spending, how spend is limited, and the distribution of control varies.
With the right P-card, finance and accounting leaders can eliminate out-of-pocket expenses for employees throughout the entire payment process. Here are just a few of the reccurring benefits companies experience when using P-cards:
Below are a few examples of where P-cards outshine when it comes to payments and expense management:
Just like every company is unique, so is every corporate card solution. When looking for a way to make internal processes easier for financial teams, consider these obstacles that P-cards can help companies overcome:
If any of these issues spark a recurring conversation or complaint from finance teams, admins, and employees, a new business purchasing process may be in order. P-cards offer an innovative and safe option for companies and are more robust when combined with the correct expense management software.
The most modern P-card on the market should provide built-in adjustable controls capable of tying P-card transactions back to expense policies. That’s why the most efficient P-cards are attached to end-to-end solutions offering heightened security controls. An end-to-end spend management system features:
Throughout the approval process, P-cards should ideally match a company’s purchasing policy against every expense. Charges within that policy approve automatically as set parameters create control for each card account.
Anything questionable receives a flag for manual approval. These automated approvals can still leave a clear audit trail while minimizing back-and-forth communication. Finance teams are more likely to catch fraudulent transactions and stop unauthorized expenses before they happen.
Modern spend management solutions also should integrate with most accounting systems. When that integration occurs, data seamlessly syncs, reducing the workload for finance teams.
Automation also streamlines the time needed to close the books each month, by eliminating double entries and keeping systems decluttered. Finance leaders can strategically make timely decisions with data-driven reports, given better spending visibility.
With P-card use, every employee has the opportunity to be a cardholder, by attaching the same purchasing card program to virtual cards. It’s possible to generate single cards, cards for recurring expenses, or cards with precise expiration dates. These unique virtual cards offer greater security against fraudsters because the virtual credit card number is untraceable without access to a cardholder's identity or computer system.
P-cards prevail as a necessity for a more secure and convenient payment vehicle to handle company expenses. However, P-card systems will not add value to the spend management process if they aren't built to scale.
With TripActions, companies can combine P-card with an award-winning spend management solution that runs the entire spend ecosystem—eliminating manual processes and high transaction fees associated with other P-card providers.
P-cards tied to a spend management system like TripActions enable companies to generate more ROI by reducing processing costs, preventing fraud, and providing insightful data that connects revenue to spend.
TripActions solves the most prominent problem associated with using legacy corporate purchase cards by giving you control over your company's entire spend ecosystem. Ready to start using TripActions today? Get up and running in 5 mins.