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What is a commercial credit card? (Merchant Service)

Both Visa and MasterCard offer special credit cards for companies designed to help them manage their spending and streamline the purchasing process.

Commercial credit cards offer companies advanced functionality, such as the ability to set employee-spending limits and restrict card usage to specific types of purchases. For example, a cardholder might be authorized to use the card only for purchasing office supplies.

Here are some examples of commercial credit cards in use today:

Visa

  • Visa Purchasing card (for procurement expenses)

  • Visa Corporate card (for travel and entertainment expenses)

  • Visa Commercial card (an integrated, multi-purpose card)

MasterCard

  • MasterCard Corporate Purchasing Card (for procurement expenses)

  • MasterCard Corporate Card (for travel and entertainment expenses)

Here are some examples of commercial credit cards in use today:

Visa

  • Visa Purchasing card (for procurement expenses)

  • Visa Corporate card (for travel and entertainment expenses)

  • Visa Commercial card (an integrated, multi-purpose card)

MasterCard

  • MasterCard Corporate Purchasing Card (for procurement expenses)

  • MasterCard Corporate Card (for travel and entertainment expenses)

Why should I care about commercial cards?

Handling commercial cards correctly is a smart business practice for several reasons:

  • If you sell to corporate customers, this can enhance your customer relationships because corporate clients will appreciate you processing their cards correctly.

  • When you get paid with commercial cards, payments are often made more quickly than with consumer cards.

  • It is often easier to get approval for commercial card payments (because commercial cards often have pre-approved spending authorization).

  • Acceptance of commercial cards usually means lower risk for you because commercial card users are pre-screened for credit approval.

Why is sales tax collected for commercial card transactions?

Collecting sales tax at the point of sale helps companies enrolled in commercial credit card programs ensure that they are paying the correct sales tax for goods purchased. Some companies also use this information to simplify their sales tax preparation.

The sales tax data you submit is sent to Visa or MasterCard. The card association then reports the information to the cardholder's company, along with the other transaction details. The information is never shared with tax agencies.

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