Purchasing+card

A Purchasing Card (abbreviated as P-Card) is a form of company charge card that allows goods and services to be procured without using a traditional purchasing process. P-Card programmes are typically associated with ad-hoc supplier expenditure and form a convenient way to consolidate many small suppliers into one single consolidated invoice. They are an established proposition and arguably have the highest level of expenditure transacted through programmes in today’s market. Suppliers are charged a transaction fee by the P-Card provider for early payment. The buyer settles with the P-Card provider on their pre-agreed terms.

Purchasing Cards are usually issued to employees who are expected to follow their organization’s policies and procedures related to P-Card use, including review and approval according to a set schedule (at least once per month). The organization can implement a variety of controls for each P-Card; for example a single-purchase dollars limit, a monthly limit, or merchant category code restrictions.