Who is liable for corporate card charges?

It depends on the program type. Corporate liability means the company pays the bill directly. Individual liability means the employee pays and submits for reimbursement. Some companies use a hybrid where travel is corporate-liable and incidentals are individual. Navan supports corporate liability cards that eliminate the reimbursement cycle entirely.

How is a corporate card different from a business credit card?

Corporate cards are issued to employees of large organizations (typically $4M+ revenue), run credit checks against the company rather than the individual, and offer per-employee spending controls. Business credit cards are for owners and sole proprietors and appear on personal credit reports. Navan's corporate card is designed for multi-employee travel programs.

Can employees use corporate cards for personal purchases?

No — corporate cards are for approved business expenses only. Most programs block personal spending through merchant category restrictions and real-time alerts. Unauthorized personal charges can result in disciplinary action or termination. Navan flags non-compliant transactions automatically based on pre-configured policy rules.

What are virtual corporate cards?

Virtual corporate cards are digital-only card numbers with no physical plastic. Each number can be locked to a specific merchant, amount, or expiration date. They're used for online bookings, subscriptions, and vendor payments. Navan auto-generates virtual card numbers at the point of travel booking, matching each to a specific trip and policy.

Do corporate cards affect an employee's credit score?

Under corporate liability programs, the card does not appear on the employee's personal credit report and has no impact on their score. Under individual liability programs, some issuers may report the account to credit bureaus. Navan's corporate card program uses corporate liability, keeping employee credit reports clean.

Corporate cards explained: liability, controls, and types

Key Takeaways About Corporate Cards

A corporate card is a company-issued payment card that employees use for approved business expenses, with charges billed directly to the organization rather than the individual. Navan's corporate card integrates directly with its travel and expense platform, giving finance teams real-time transaction visibility and the ability to enforce spending controls before purchases happen.

Corporate cards come in two liability models: corporate liability (the company pays and is responsible for all charges) and individual liability (the employee pays the bill and submits for reimbursement).
Navan's corporate card integrates with its travel and expense platform, automatically matching transactions to trips and enforcing policy at the point of purchase.
77% of T&E managers said their expense management platform doesn't support their needs, though they were satisfied with their corporate card solution (Skift and Navan 2026 survey).
Virtual card numbers — single-use or merchant-locked codes — are replacing physical plastic for categories like subscriptions, vendor payments, and online bookings.
Companies typically need $4 million+ in annual revenue to qualify for traditional corporate card programs from major issuers.

What Is a Corporate Card?

A corporate card is a payment card issued by a company to its employees for authorized business expenses. The card bears both the employee's name and the company's name, but the underlying credit line belongs to the organization. Charges flow into a centralized corporate account, giving finance teams a consolidated view of all employee spending.

Corporate cards are distinct from small business credit cards, which are designed for business owners and sole proprietors. Corporate card programs are built for organizations with multiple cardholders, require more sophisticated controls, and typically come with dedicated account management.

Corporate liability vs. individual liability

The most important distinction in corporate card programs is who's on the hook when the bill arrives:

Corporate liability: The company receives and pays the statement directly. The employee never sees a personal bill. This model eliminates reimbursement friction and gives the company full control, but requires strong pre-purchase controls to prevent misuse.
Individual liability: The employee receives the bill, pays it with personal funds, and submits an expense report for reimbursement. This model shifts risk to the employee but creates reimbursement delays. The Skift and Navan 2026 survey found that 71% of travelers spend 30+ minutes filing expense reports .

Some programs use a hybrid model where the company pays for travel and lodging directly (corporate liability) while meals and incidentals are individually liable.

How corporate cards differ from business credit cards

Issued to: Corporate Card: Employees of a large organization / Business Credit Card: Business owners and sole proprietors
Credit check: Corporate Card: Against the company / Business Credit Card: Against the individual's personal credit
Spending controls: Corporate Card: Per-employee limits, category restrictions, merchant blocks / Business Credit Card: Usually a single overall credit limit
Revenue requirement: Corporate Card: Typically $4M+ annual revenue / Business Credit Card: No minimum
Reporting: Corporate Card: Centralized dashboard for all cardholders / Business Credit Card: Individual account statements
Personal credit impact: Corporate Card: Usually no impact on employee's credit score (corporate liability) / Business Credit Card: Appears on the owner's personal credit report

Spending controls and policy enforcement

Modern corporate cards go far beyond a simple credit limit. Finance teams can configure:

Per-employee spending caps — daily, weekly, or monthly maximums
Category restrictions — blocking specific merchant category codes (MCCs) like gambling, alcohol, or personal retail
Merchant locks — restricting charges to approved vendors only
Time-based controls — cards that only work during business hours or active trips
Real-time alerts — notifications when transactions exceed thresholds

Navan's corporate card enforces these controls at the point of purchase, declining transactions that violate policy before the charge posts rather than flagging violations after the money is spent.

Types of corporate cards

Corporate cards come in three forms, each with different payment mechanics:

Corporate credit cards function like traditional credit cards, with a revolving line of credit that must be paid monthly. They're the most common type for large organizations.
Corporate debit cards are linked directly to the company's bank account, deducting funds immediately when a purchase is made. They prevent overspending but don't offer a credit float.
Corporate charge cards require full payment at the end of each billing cycle with no option to carry a balance. They enforce spending discipline but offer less flexibility than credit cards.

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Virtual corporate cards

Virtual cards are corporate card numbers generated digitally, with no physical plastic. Each number can be locked to a single merchant, capped at a specific amount, or set to expire after one use. They're increasingly popular for:

Online travel bookings: A unique number per reservation prevents overbilling.
Subscription management: Locking a card to a specific vendor and amount catches price increases instantly.
Vendor payments: Replacing checks and wire transfers with traceable, controllable card payments.

Navan issues virtual cards that auto-generate at the point of booking, matching each card number to a specific trip, traveler, and policy.

When a corporate card isn't the right fit

Corporate cards work best when employees make frequent, recurring business purchases. They're less suitable when:

Employees travel to cash-heavy regions where card acceptance is limited
Transaction values are very large (capital equipment, real estate deposits), which typically require purchase orders and wire transfers
The company has fewer than 50 employees — small business cards or expense reimbursement may be simpler and sufficient
Seasonal workers or contractors need temporary payment access. Prepaid cards or virtual cards may be more appropriate

Virtual Credit Card: A digital-only card number generated for specific transactions — the paperless extension of the corporate card.
Ghost Card: A cardless account number assigned to a department or vendor for centralized billing without issuing physical cards to individuals.
Spend Visibility: The real-time insight into corporate spending that corporate card transaction data enables.
Reconciliation: The process of matching corporate card transactions to receipts, bookings, and ledger entries at month-end.

Frequently Asked Questions About Corporate Cards

A corporate card is a company-issued payment card that employees use for approved business expenses like travel, meals, and supplies. Charges bill directly to the organization's account, not the employee's personal credit. Navan's corporate card integrates with its travel platform to automatically enforce spending policies at the point of purchase.
It depends on the program type. Corporate liability means the company pays the bill directly. Individual liability means the employee pays and submits for reimbursement. Some companies use a hybrid where travel is corporate-liable and incidentals are individual. Navan supports corporate liability cards that eliminate the reimbursement cycle entirely.
Corporate cards are issued to employees of large organizations (typically $4M+ revenue), run credit checks against the company rather than the individual, and offer per-employee spending controls. Business credit cards are for owners and sole proprietors and appear on personal credit reports. Navan's corporate card is designed for multi-employee travel programs.
No — corporate cards are for approved business expenses only. Most programs block personal spending through merchant category restrictions and real-time alerts. Unauthorized personal charges can result in disciplinary action or termination. Navan flags non-compliant transactions automatically based on pre-configured policy rules.
Virtual corporate cards are digital-only card numbers with no physical plastic. Each number can be locked to a specific merchant, amount, or expiration date. They're used for online bookings, subscriptions, and vendor payments. Navan auto-generates virtual card numbers at the point of travel booking, matching each to a specific trip and policy.
Under corporate liability programs, the card does not appear on the employee's personal credit report and has no impact on their score. Under individual liability programs, some issuers may report the account to credit bureaus. Navan's corporate card program uses corporate liability, keeping employee credit reports clean.