Statements

On consumer credit cards, the statement is becoming obsolete. Many banks are moving toward e-statements and most Internet banking facilities allow you to retrieve a transaction history for an arbitrary date range. However for businesses, statements remain relevant for tax, accounting and audit purposes.

If you plan on using a credit card for your business expenses, ask the bank if their statements are BAS compliant. If so, you can submit the statements directly with your BAS summary, which will save a lot of time. However, it means you'll need to conduct all your business purchases through your card.

You may also wish to check the bank's Internet banking site permits you to download your statements in a format compatible with your existing accounting software (MYOB, Quicken etc).

If you'll have multiple cards attached to the account, check the bank can provide you with a single statement, but with the transaction listings separated by card.

Per-Card Costs

Many businesses require multiple cards, which are distributed to staff members. If you need more than one card, consider any additional costs. Most cards charge an 'Additional Card Fee' and if the card has a rewards program, the bank may charge a 'Rewards Program Services Fee' for each card linked to the account.

Unauthorised Usage Insurance

If you're distributing credit cards to your employees, you risk unauthorised purchases. As the primary account holder, you're liable for all purchases made by your staff.

To protect you, many business credit cards come with in-built Unauthorised Usage Insurance, which provides cover for unauthorised transactions up to a pre-agreed value.

If you're considering a card which offers Unauthorised Usage Insurance, make sure you read the policy product disclosure statement carefully and understand any excess and policy exceptions. As with all included insurance products, the one-size-fits-all approach may not be appropriate for you needs. Research independent unauthorised usage insurance before you apply.

Credit Limits

To mitigate the risk of unauthorised transactions, consider if the card allows you to set an independent credit limit on each card. This will enable you to control the spending capacity of each employee.

Reward Programs

Many business credit cards come with a rewards program, but it's important that you understand the costs to your business. The program may come with an explicit fee (sometimes charged per-card), or the fee may be built into the annual fee or interest rate.

Use your understanding of your business' spending and credit behaviours to estimate how many points you'll accumulate each month, and balance the redemption value against the costs. You may find the costs exceed the benefits.

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