A corporate purchasing card, commonly known as P-cards or procurement cards, is a type of payment card issued by companies to their employees for business-related purchases. Its primary purpose is to streamline the procurement process by enabling employees to directly purchase goods and services needed for their work without going through lengthy purchase order procedures. This enhances efficiency and reduces administrative costs as it usually comes with an accompanying procurement software.
P-cards are particularly useful for small, frequent purchases, such as office supplies, travel expenses, and minor equipment. They can be customised with spending and transaction limits and can be restricted with vendor controls, blocking specific merchant or types of purchases.
Additionally, modern P-cards often integrate with the company’s accounting systems or software, such as Xero, allowing for automatic reconciliation and real-time monitoring of expenses. This integration improves transparency, accountability, and budget management, ultimately contributing to better financial control and operational efficiency for the company.
