| In this new age world where technology rules almost | | | | ensuring justice in the court of law. It is important for all |
| every sphere of life, monetary transactions of all kinds | | | | business organizations to have a clearly outlined |
| and quantities are being conducted via electronic | | | | company policy that enlists all the rules regarding |
| channels. The convenience of owning and using credit | | | | company charge card use as well as the legal |
| cards on a regular basis far outstrips the practice of | | | | ramifications that will be enforced in case of |
| carrying money in wallets all the time. With this | | | | wrongdoing. Documents pertaining to the same must |
| increasing dependency on plastic money, the risks of | | | | be presented to each employee for reading and an |
| credit card fraud too have increased. | | | | agreement regarding the same must be signed. Even |
| For business organizations, preventing employee fraud | | | | though there are instances in which these documents |
| has become a major responsibility. In a world where | | | | are not admissible in legal cases, they are a means of |
| criminal intent is backed with superior technology, | | | | proving that the employee is aware of and agreed to |
| undertaking this responsibility has proven to be a | | | | the company credit card policy. |
| challenge. However, armed with the fraud prevention | | | | 3. COLLABORATE WITH YOUR CREDIT CARD |
| policies and certain measures, that we have discussed | | | | COMPANY |
| herein, companies can go a long way in ensuring their | | | | When issuing cards to employees, businesses |
| own interests as well as the financial and personal | | | | organizations should team up with the charge card |
| safety of their employees. | | | | company for choosing a plan that best ensures all |
| 1. FORMULATE A RIGID, LEGALLY | | | | financial safety and includes measures against any |
| INDOCTRINATED COMPANY POLICY | | | | form of fraud or misuse. There are various programs |
| For companies that provide their employees with a | | | | and measures available that can negate these risks to |
| credit card for business related expenses it is a must | | | | a great extent. Credit cards can be written with a |
| to have a written and clearly detailed policy. Even | | | | certain code which entirely blocks their usage in |
| though there are a number of responsible people in the | | | | specific places. These codes are known as Merchant |
| world who would rather follow the norms than abuse | | | | Category Classification codes, and when built into the |
| their privileges, there are many more who believe in | | | | cards, forbid their usage in places like casinos, |
| using these professional privileges for personal | | | | nightclubs etc. Also, company owners can determine |
| materialistic motives. | | | | the expenditure limits of the credit cards that they |
| Even though, most of the times using a company | | | | issue and have a policy system that calls for express |
| charge card for personal purposes is a rather futile | | | | authorization in cases of large expenses. |
| attempt at saving money, for there are always | | | | 4. SCRUTINIZE EACH EMPLOYEE AND MAINTAIN |
| records of the expenditure detailing the purchase, the | | | | EXTREME CAUTION |
| cost, the date and time and place which help the | | | | Surveys and studies have unearthed the fact that |
| company to find the user of the card, it does not deter | | | | some of the biggest credit card frauds are actually |
| many who have ignoble intent. | | | | performed by venerable and trusted employees. |
| For owners of businesses, simply taking for granted | | | | Exempting a favored or high- level employee from |
| that each employee will be aware of, appreciative and | | | | scrutiny because of their position or relationship with |
| willing to follow an unwritten code of honorable | | | | the organization might lay the groundwork for inducing |
| conduct is a rather precarious assumption. It is a | | | | malpractices. The expenditure and credit card usage |
| financial risk of extreme proportions, for in the case of | | | | of each employee and member of the firm should be |
| a credit card fraud, even if the offender is | | | | appraised by an auditing firm. |
| apprehended; the company stands to lose vast | | | | 5. TALK TO YOUR EMPLOYEES ABOUT THE |
| amounts of money. | | | | POLICY AND EMBRACE AUTHORITY |
| 2. LEGALLY ENFORCE THE CREDIT CARD | | | | Some employers are hesitant of reminding their |
| POLICY | | | | employees of the credit card policy for a number of |
| Simply having a detailed and documented company | | | | psychosocial reasons. However, leaving matters |
| policy is not enough. In times where criminal intent and | | | | unspoken and ambiguous creates more possibilities of |
| activity flourished unbounded, it is the duty of business | | | | risk. Company owners should reinforce policy norms in |
| owners to back their company policies with legal | | | | even the slightest cases of neglect. Excusing |
| measures. Having an unspecified code of conduct or | | | | misbehavior will only set the wrong tone for the rest of |
| even a written down company policy is not enough for | | | | the employees. |