Commercial Insights

How to choose the right commercial card for your organization

Choosing the right commercial card depends on how you’ll use the card and what works best for your organization. There are four key features to look for – function, protection, integration, and rewards.

What is a commercial card?

A commercial card is a company-issued payment card that mid-size to large organizations can use to streamline purchasing, manage employee spending, improve cash flow, and enhance security.

Commercial cards can give employees a level of independence and flexibility while also providing businesses with an effective solution for expense and budget management.

“Commercial cards function as a working capital tool,” said Jay Darnell, head of Commercial Card and Fintech Enablement at Regions Bank. “They provide businesses the ability to pay merchants up front and on time while increasing their bottom line.”

Function: What are the types of commercial cards, and what do they do?

Different types of commercial cards provide varying functionality, and choosing the right one depends on the specific needs of your business. The main types of commercial card include:

• Purchasing cards: Primarily for your back office, these cards are used to cover accounts payable and pay for equipment, goods, and services.
• Travel and entertainment cards: For team members who spend a lot of time traveling, these cards can be used for expenses such as hotels, flights, rental cars, and meals on the road.
• Fleet or fuel cards: For companies with a fleet of vehicles to manage, these cards can be used for fuel and maintenance.
• All-in-one solutions: Some banks offer a single card that can be used for all of the functions above, streamlining management for your organization.

Protection: How can you manage spending and security?

Commercial cards give companies a way to enable and control employee spending on behalf of the business. Commercial card providers can restrict how specific cards are used to ensure only approved types of purchases are made.

Commercial cards also typically feature built-in protections to help assist with potential misuse and fraud. “By leveraging real-time authorization alerts, transaction reports, and spending controls, organizations can gain clear visibility into their expenses and quickly identify unauthorized transactions,” Darnell said. “It’s important to choose a card provider that offers fraud monitoring that can alert you to suspicious behavior or charges as they arise.”

Integration: How can your card improve your processes?

Commercial cards can integrate with existing enterprise resource planning systems and accounting processes, making it easy to reconcile transactions and accounts payable activities. “There are a significant number of configuration and integration points with each commercial card program, so it’s important to understand how your accounting systems connect to your card provider’s to easily access information,” said David LaPaglia, Commercial Card product and operations manager at Regions Bank.

That integration also gives you clear visibility into how and where employees are spending money, which could lead to smarter purchasing decisions.

Rewards: What perks do commercial cards offer?

One benefit that’s unique to commercial cards is revenue sharing. Based on the volume of purchases over a month or a year, your card provider may share a portion of the revenue they receive back to your company.

“This provides an organization’s accounts payable department the ability to generate revenue, acting as a discount on purchases that are already being made,” LaPaglia said. “Additionally, organizations can leverage their buying power to reduce expenses by consolidating the number of vendors they do business with.”

Key takeaways

• Commercial cards are strategic working capital tools, not just payment methods. They help organizations streamline purchasing, manage employee spending, improve cash flow, and strengthen security.
• The right commercial card depends on your business needs. Organizations should evaluate cards based on four core features: function, protection, integration, and rewards.
• Spending controls and fraud protection are critical. Commercial cards allow organizations to restrict purchase types, monitor transactions in real time, and quickly identify unauthorized or suspicious activity.
• Integration with accounting and ERP systems adds significant value. Seamless integration simplifies reconciliation, improves visibility into spending, and supports smarter purchasing decisions.

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Tailor your corporate card services to meet your needs. Regions’ corporate card can be whatever your business needs it to be. Connect with us to learn more.