Author: Dana Krook

Corporate cards can be a game-changer for managing everyday expenses. But without a proper business credit card policy in place, they can also create chaos: finance teams chasing receipts, cleaning up approvals and wondering how the marketing team managed to buy three new software subscriptions.

Thomas-Louis Lafleur, CPA and Co-Founder of Le Chiffre, a leading cloud accounting firm based in Montréal, agrees. His firm helps tech startups and professional service businesses modernize their finance functions and specializes in tech-enabled processes.

“Expense management has always been a hassle for small businesses. It’s either too loose or too locked down, and both are cumbersome,” he says.

In this guide, Thomas shares the practical steps he recommends to help Canadian business owners build a business credit card policy that enhances financial control, simplifies spend management and scales with their teams.

Why a card policy matters more than ever

If you’ve ever had a single shared card for your whole team, you know the drill: unclear spending, missing receipts and mystery charges that no one wants to claim. Finance teams have seen it all (and yes, they still talk about that one semi-scandalous charge nobody could ever reconcile). Without structure, card use gets messy fast.

“Most small businesses either give access to everyone and spend ages chasing receipts or lock cards down completely and frustrate the team,” says Thomas. Neither approach works well long-term.

Inefficient financial processes or systems and insufficient cash flow are two of the top five financial challenges SMBs face in Canada. Improving management of company spend and streamlining reconciliations can help ease some strain. 

Unclear policies also complicate audits, slow down approvals and weaken financial visibility. In short, no one wins. And Thomas points out, “The second you don’t have receipts or visibility into card use, it becomes hard to control spend or prove good use of the company’s money.”

The best tools will uphold your business credit card policy

A written document is helpful, but the most effective business expense guidelines live where people actually spend: inside the software. Categorization prompts, text reminders and other nudges from the platform can reduce the burden of reminders and follow-up.

“The best policies are unseen and built into your process,” says Thomas. “If limits and permissions are already built into the system, you don’t need to chase compliance. Technology can help you create clear boundaries.” 

This is one reason Thomas encourages clients to adopt tools like Float. Policy enforcement is seamless when spending limits, categories and receipt tracking are automated.

5 steps to create a business credit card policy that works

A strong policy starts with clarity and scales with structure. Here is Thomas’s step-by-step breakdown for effective corporate card management (without the ever-tightening band of tension around your head).

Step 1: Define clear usage guidelines

Start with clear boundaries around what your company credit cards are actually for. That means outlining acceptable expense categories, inappropriate purchases (like personal items) and the documentation required to stay compliant.

Thomas suggests aligning business expense guidelines for credit card use with your existing expense policy, but adding more scrutiny to riskier categories.

“Expenses like phones, meals and entertainment should have extra oversight,” he says. “And even though expenses like software seem business critical, they often fly under the radar and can get out of control if software isn’t being used.” 

The clearer your categories and documentation expectations, the easier it is to reconcile corporate card statements efficiently and reduce audit risk.

Step 2: Set spending limits and assign responsibilities

Spending caps aren’t just about protecting budgets. They’re about clarity. Role-based limits ensure everyone knows what they can spend, while approval layers keep things moving.

“Under $200 might not require approval,” says Thomas. “But once you go above that, you should require a manager’s sign-off. Anything over $5,000? That should include the CFO or finance lead, too.”

Whether you use Float or another platform, the ability to assign individual card limits and responsibilities is a must for modern corporate card management.

Step 3: Establish approval and reporting procedures

For recurring spend and high-ticket items, a clear process for approvals and monthly reporting ensures nothing slips through the cracks.

“Every expense should have backup documentation, and every manager should review their P&L against the budget regularly,” Thomas advises. “It’s not just an accounting job. Managers need transparency and tools to understand variances and stay on track.”

Modern tools offer smart workflows for credit card expense management and are the brightly-coloured life preservers that keep your team from drowning in paperwork or manual uploads.

Step 4: Communicate policy and provide training

Don’t just email your policy and hope for the best. Make sure your team understands the why behind it and give them guardrails they can actually follow. This is where those built-in guardrails can help guide your employees.

“It’s best when boundaries are embedded into the tools themselves. Float is great for this,” says Thomas. “If the path is already traced and spending limits are built into the software, it’s way easier to enforce.” That means fewer misunderstandings, less manual tracking and better company credit card usage overall. 

Better to have your policy built into the process than written in a document no one reads. Tech-enabled training plus precise in-app controls are a winning combo.

Step 5: Monitor and audit card usage

Strong financial management policies don’t mean much without regular review. Make auditing part of your monthly close and conduct deeper dives quarterly to spot trends or category bloat.

“At minimum, do a monthly check,” says Thomas. “But you also need quarterly deep dives into software spend and other GL categories. Without a clear budget as a benchmark, it’s hard to catch discrepancies.” 

Platforms like Float support better oversight of your corporate card program with real-time visibility and budgeting tools built for finance teams.

Float: Take control of your company credit card usage with an iron-clad policy

A strong business credit card policy doesn’t just protect your budget. It helps your team spend responsibly whenever your organization needs it, without friction or overspend.

With Float, Canadian businesses can embed their policies directly into the tools they use every day, complete with automated controls, smart limits and simplified reporting that supports every step of your financial management policy.

If you’re still fighting to enforce your business expense policy manually or running corporate card programs off spreadsheets, it might be time to hang up the gloves.

“Integrated tools help clients get out of old-school processes and into a system that works,” says Thomas. 

Corporate cards should make business spending smoother, not riskier. But without the right controls, visibility or policies, even well-meaning teams can open the door to fraud, misuse and costly mistakes.

Nobody likes the thought of fraud happening in their organization, but ignoring it is not an option. The longer a dishonest employee works for the company, the greater the impact. Median costs lost to a bad actor rocket up to a quarter of a million dollars over a decade or more, according to the Association of Certified Fraud Examiners.

Seb Prost, CPA and founder of LedgerLogic, has helped guide business owners through these concerns. His firm provides tax, accounting and virtual CFO services for Canadian businesses looking to modernize their finance stack and reduce the friction of traditional banking tools.

In this article, Seb walks through the risks he sees most often and the corporate card security best practices that help companies take a proactive stance in credit card fraud prevention.

The importance of managing corporate card security

Corporate card fraud rarely looks like a high-stakes heist. More often, it’s unintentional misuse or a small purchase here and there. Even so, the cost adds up. And it’s even harder to spot red flags when your team shares cards or lacks oversight.

“The lack of real-time visibility into spending is a huge issue, especially with legacy banking,” says Seb. “You might not know until month end what was actually spent.”

Delayed reconciliations, shared cards and hard-to-cancel access are all vulnerabilities that Seb’s clients face. These issues pose a risk, especially when no one’s sure who made a charge or whether the expense aligns with someone’s role. With help, these businesses can implement better financial management controls that are key to preventing corporate card misuse.

Biggest safety risks

When it comes to corporate card security, the most common risks aren’t always the most obvious. Sometimes the issues are real security risks, while others are simply due to a lack of clarity. 

Here are a few of the most common risks Seb advises businesses to watch out for:  

Lack of visibility

Without real-time spend tracking and timely receipt submission, unauthorized charges can fly under the radar for weeks or even months. 

Shared cards

As soon as a card changes hands, there’s an opportunity for murky details or misuse. “If it’s just one card for multiple people, how do you even know who spent what?” asks Seb.

Orphaned cards

Former employees with lingering access can create serious exposure if cards aren’t cancelled immediately.

Receipt gaps and role mismatches

Expenses that don’t align with a person’s responsibilities or arrive without documentation should cause concern. 

5 tips to better your corporate card security management

The risks are real, but can be managed. With the right policies and financial management tools in place, you’ll be well on your way to preventing corporate card misuse while empowering your team. 

1. Develop a comprehensive corporate credit card policy

Think of your credit card policy like a seatbelt. It should click into place before anyone starts driving. It’s your first line of defence to preventing any security issues. Define who gets a card, how it should be used and what happens when someone breaks the rules.

Seb recommends setting clear eligibility criteria, pre-approval thresholds and usage guidelines tied to specific roles and responsibilities. 

“Does it make sense that this person gets a card?” he says. “If someone’s in IT, maybe they need to pay for a subscription. A salesperson might need travel funds. But not everyone needs a card that can be used for anything.” 

The policy should also list prohibited uses (like personal expenses) and the consequences for credit card misuse. And don’t let your corporate credit card policy collect dust. “Review it periodically, especially if there are changes in how the business operates,” says Seb. 

2. Implement financial management controls

Internal controls are essential for spotting fraud early. For example, you can assign individual cards instead of shared ones for more clarity. “You want to be able to track an expense back to an individual, not a team,” Seb says.

Real-time transaction feeds help business owners or accountants flag issues quickly. “You can pop into Float and review expenses daily if you like,” says Seb.

Other smart controls include:

• Regular reviews by accountants or management
• Setting and reviewing transaction limits
• Segregation of duties so the same person isn’t both spending and approving 

3. Use technology to enhance security

Legacy systems walk. Modern solutions run, with real-time visibility, instant card controls and tech that doesn’t make you beg a banker for a call back. 

“Instant card issuance and freezing is a big one,” says Seb. “If somebody joins or leaves, you can issue or cancel a card right away with no need to call the bank.”

He also recommends category-level restrictions. “If you can limit based on what the person actually needs, that’s super helpful,” he says. 

Other features that stand out include:

• Adjustable spending limits that reflect project budgets or one-off needs
• Cloud accounting integrations that eliminate manual data entry
• Automatic receipt capture and reminders to cut down on paperwork and errors

“Automation helps catch issues early and significantly reduces the administrative burden on finance teams,” says Seb. 

4. Set appropriate corporate card limits

Card limits aren’t one-size-fits-all. “Base limits on the employee’s role and the type of expenses they might incur,” Seb says. A salesperson might need more flexibility, while admin staff might only need a small recurring amount.

He also suggests adjusting corporate card limits monthly when needed, like busy seasons or to attend a trade show. He also recommends enabling real-time alerts so employees know when they’re approaching their cap. 

5. Educate employees on security best practices

Policies only work if people follow them. “It starts with clear communication and training,” says Seb. 

He recommends a quick onboarding session when issuing cards, including examples of acceptable and off-limits purchases. “Equally important is reinforcing that card access is a responsibility, not a perk.”

Seb also flags receipt collection as a chronic pain point. “Especially for outsourced bookkeepers, it’s hard to get clients to provide supporting documentation,” he says. That’s where Float’s automated reminders can offer help.

“When employees get a text reminder to upload their receipt right away, it makes a big difference,” says Seb. “It reinforces good habits.” Finance teams can also offer transparent feedback to help employees stay compliant without friction.

Float: A smarter path to corporate card security

Float works to reduce fraud, improve workflows and help finance teams sleep a little better at night.

Card security shouldn’t be damage control. Build smart habits into your spend process from day one, and skip the nightly teeth-grinding and month-end panic.

Seb often recommends Float to clients because it streamlines corporate card management for everyone. “We get that visibility on credit card spend. It makes it easier for them, and makes it easier for us,” he says.

Want to see if Float is right for you? Take a tour. 

From unpredictably high costs to time-consuming expense reports, effectively managing business spend often leads to frustration and headaches. However, travel expenses, client dinners and office supplies are hard to avoid. 

Whether you’re getting ready to launch a startup or leading finance for a small business in Canada, you know that corporate cards play an important role in growing and managing your company. So, how can you—and your team—spend company money without it resulting in a migraine? 

With the right corporate cards for your small business, you can improve cash flow, avoid unwanted purchases and make your money go further, all while streamlining expense management. 

In this implementation guide, you’ll get step-by-step instructions on the best way to set up corporate cards for a small business in Canada.

Step 1: Identify benefits of corporate cards for your small business

It may seem easy to put your business expenses on your personal credit card, but this can leave you missing out on some major benefits.  Leveraging corporate credit cards for small Canadian businesses offers a number of advantages: 

• Personal finance protections: Separating business and personal spending helps protect personal finances if your business ever runs into trouble.  
• Improved cash flow: Corporate cards provide a way to increase your access to capital and use your enhanced purchasing power to pay bills and buy supplies without waiting for accounts payable. 
• Financial rewards: Corporate cards offer financial perks that make your money go further, such as cashback, travel points, shipping discounts and waived foreign transaction fees. 
• Better business credit rating: Want better business loan terms or insurance rates? Improve your company’s credit rating with a corporate card that you pay off every month. 
• Enhanced financial control: With a corporate card program, you can set limits, track spending in real time, and avoid budget overruns. This control is especially important considering that 30% of SMBs don’t have good cash flow visibility. 

Step 2: Evaluate corporate card features that suit your small business needs

Your corporate card program should make managing your business expenses easier. After all, you’re trying to reduce the number of headaches on any given day.

Opt for corporate card programs that integrate with your accounting software, like QuickBooks and Xero, so you can have seamless expense management processes. Float’s expense management software offers the ability to automatically submit receipts via mobile app or text, completely eliminating the need for those pesky expense reports. 

Another major feature to consider when you’re choosing a small business credit card in Canada is employee management. Does the card offer custom spending controls for each cardholder, for example, or can you set limits for one-off purchases? These types of controls remove the burden of manual expense monitoring so you can focus on running the business.

Step 3: Implement corporate card policy rules

Having a corporate card with employee controls is one thing, but you still need corporate card policy rules to ensure compliance and accountability. Effective policies minimize the risk of financial fraud and corporate card misuse and clarify confusion around business expenditures. 

Your corporate card policy rules should cover: 

• Corporate card eligibility: Define which individuals are eligible for a corporate card based on their title or duties. 
• Rules for usage: Determine what the corporate card can be used for to avoid surprise reimbursement requests. Outline what it should not be used for, such as personal expenses. 
• Spending limits: Set spending limits for each cardholder or specify limits for specific purchases, such as client dinners and airline tickets. 
• Documentation requirements: Specify whether you want electronic or hard-copy receipts and how you want the documentation submitted. Clarifying this up front significantly streamlines business expense management (especially at tax time!). 
• Expense approvals: Clarify the organizational hierarchy for spending approvals and outline the timeline for approvals to avoid expense management delays.

Step 4: Select the right small business corporate card

To get the most business credit card benefits, you’ve got to choose a card that offers perks that matter to you. Here are the key considerations when choosing the best business credit card for your needs: 

• Annual fee: If you’re paying an annual fee, it should deliver real value. There are also great options with no annual fee that still offer plenty of benefits, so make sure whatever you choose is worth it.
• Rewards: Does the card offer cash back on purchases, and if so, how much? Some cards give you a flat percentage back after a certain spending threshold, while others only reward specific categories. Also consider whether the card includes points, discounts, travel perks or other benefits that matter to you.
• Interest rates: Many business credit cards have high interest rates, while some, like Float, offer interest-free credit terms. 
• Application times: Most banks take two to three weeks to process applications, while Float cards are issued almost instantly (if you don’t mind waiting five minutes).

Step 5: Train employees on corporate card use

A recent study on corporate-issued credit cards showed that 30% of company cardholders have not received any training on how to use them appropriately. That’s a recipe for misuse, and one that can be easily avoided with the right training. 

To fully take advantage of business credit card benefits, it’s important to educate staff about company credit card policies (see step 3!). Set up training sessions covering misuse, spending boundaries and documentation requirements when submitting expenses. Make sure to tailor your training to your specific business needs. You can even train people based on their roles and what permissions they would have.

Corporate credit cards for small Canadian businesses: A strategic tool for growth

Business credit cards have considerable advantages for Canadian businesses when implemented properly. Following these steps when getting corporate cards for your business will help you avoid banging your head on your desk at the end of each month while spending confidently.

Ready to get your own corporate credit card program started?

Check out Float corporate cards and see how we can help you scale your financial operations with a balance of control and flexibility. Book a demo with our team today.

As businesses grow and spend becomes more decentralized, the way teams manage expenses has to grow with it. One of the biggest shifts? Moving from plastic in your wallet to virtual numbers in your phone.

Virtual corporate cards are now a go-to for many finance teams, offering speed, security and control. But these aren’t entirely replacing physical cards! Those still have their place, especially for travel-heavy teams or in-person transactions.

So, which should your business be using and when?

Let’s break down the pros, cons and best use cases for virtual and physical corporate cards so you can take advantage of corporate card benefits.

What are corporate cards?

Corporate cards are company-issued payment cards that employees use for work-related purchases, from client dinners to SaaS tools and everything in between. Instead of reimbursing staff, corporate cards let teams pay upfront, giving finance teams visibility and control over spending. 

Great expense management solutions use corporate cards as part of a bigger system that: 

• Increases operational efficiency by reducing the time spent chasing receipts
• Improves accuracy by minimizing manual entry and error-prone spreadsheets
• Encourages responsible spending through clear budgets and rules

Today’s corporate cards typically include spend limits, transaction tracking and fraud protection. Some also offer extra features like instant card issuance and cashback rewards.

Virtual vs Physical Corporate Cards

There are two main types: virtual cards and physical cards. Let’s look at how each works.

Virtual corporate cards

A virtual corporate card is a digital-only card that exists online. It has a card number, expiry date and CVV, just like a physical card, but there’s no plastic involved. You can generate one instantly, assign it to an employee or a vendor and start spending right away.

Virtual cards are especially useful because of how easy they are to control. You can create a single-use card for a vendor, set daily or monthly limits, block specific merchant categories or have the card auto-expire after a specific time period. If the card is compromised, you can freeze or delete it in seconds. You also generate a virtual replacement just as fast—no waiting weeks for cards to arrive in the mail. 

Benefits of virtual corporate cards:

• Instant issuance and assignment
• Custom spend limits and expiration rules
• Better tracking by employee, team or vendor
• Higher virtual card security with less exposure to fraud
• No physical card to lose, steal or forget at home

“I only use physical card[s] for ATMs, and virtual for every other payment, unless I have absolutely no other choice. It’s safer, because I can block and create a new one any time in case something happens.” — Reddit user

Drawbacks to consider:

• Not accepted by all merchants for in-person purchases
• Can’t be used at ATMs
• Some employees may prefer the familiarity of a physical card

Virtual cards are ideal for managing online subscriptions, assigning budget-specific cards to marketing campaigns or vendors, and giving employees limited-use cards for purchases like software, training or equipment. They’re ideal for startups and digital-first teams that want scalable ways to control company spend. 

Physical corporate cards

Physical corporate cards are the traditional plastic cards most are familiar with. They’re chip-enabled, tap-to-pay ready and can be swiped or inserted anywhere credit cards are accepted.

They’re ideal when a virtual card won’t cut it, like when employees need to travel, withdraw cash or pay at locations that don’t support digital wallets.

Benefits of physical corporate cards:

• More wide acceptance at stores, restaurants, hotels and ATMs
• Convenient for travel and day-to-day business spending
• Easy to use, especially for employees who prefer traditional options
• Some cards offer rewards like travel perks or cashback (though some virtual cards do too—like Float’s 1% cashback)

Common drawbacks:

• Cards can be lost, stolen or cloned
• Replacements take time to ship
• Without proper controls, they’re harder to monitor or restrict

That said, physical cards can offer great control when paired with platforms that let you set spend limits, block categories or track transactions in real time. With the right tools, you can get the best of both worlds: flexibility for your team and oversight for your finance team.

How to compare virtual and physical cards

Here’s a quick comparison of how the two card types stack up:

Best use cases for each

The best setup isn’t always either-or. Depending on the situation, many companies benefit from using both card types.

Use virtual cards for:

• SaaS tools and cloud software
• Digital ad platforms
• Freelancer or vendor payments
• Employee-specific budgets (e.g. onboarding, training, home office)

Use physical cards when:

• Team travel, meals and conferences
• In-person client purchases or hospitality
• Office supply runs and vendor pickups
• Situations where ATMs or swipe terminals are required

For example, your marketing manager might have a virtual card for ads and a physical card for travel. This separation adds clarity and control for finance without slowing down the team.

By mixing card types and clearly defining usage rules, you can increase security, reduce confusion and streamline reconciliation.

How to choose the right corporate card solution

When building or upgrading your company’s business card usage, here are some tips to consider:

• Choose a provider that offers both virtual and physical cards
• Look for tools that allow you to set spend limits, restrict merchants and monitor usage in real time
• Make sure the cards connect with your accounting, ERP and HR systems
• The system should be simple for your team to understand and adopt
• Whether you’re onboarding one person or one hundred, it should take minutes, not weeks

Training also plays a key role. Make sure employees know which card to use and when, what expenses are covered and how to submit receipts or notes if needed. A quick guide or short onboarding video can go a long way.

A well-managed card program can unlock smarter budgets, faster processes and better decision-making across your business. All it takes is the right setup and the right tools to support it. Explore Float’s corporate card solutions today.