Purchasing card
From Wikipedia, the free encyclopedia
A Purchasing Card is a form of company credit card that allows goods and services to be procured without utilising a traditional purchasing process.
Purchasing Cards are usually issued to employees who are required to operate within a set of company rules and guidelines which usually includes an approved spend limit.
Use of Purchasing cards has seen a dramatic rise in recent years with many government organisations now using them to remove “red tape” and reduce costs[1]. For example In 2001 the Department of Defense (DOD) had 230,000 card holders with an annual spend of $6.1 Billion.[2]. Organisations typically use purchasing cards to target low value goods and services, as it offers a mechanism to do these transactions at a significantly lower cost than traditional methods.
There are a variety of software solutions available to help manage purchasing card programs, in particular the electronic statements that are provided by card companies in place of traditional purchase invoices.
[edit] References
- ^ Using Purchasing cards to streamline the Purchasing Process
- ^ Purchase Cards: Control Weaknesses Leave Army Vulnerable to Fraud, Waste, and Abuse By Gregory D. Kutz,
