For growing Michigan businesses, managing day-to-day expenses can create operational friction and security challenges. Manual reimbursements, checks, and invoices slow operations while increasing the risk of transaction fraud.
Purchasing cards (p-cards) solve these problems by providing a smarter, more controlled way to manage business spending. P-cards save labor and time processing manual transactions while providing transparent tracking and controls. Learn why more Michigan businesses are turning to purchasing cards to simplify and secure expense management.
What Is a Purchasing Card?
Purchasing cards or p-cards, also known as procurement cards or procards, are business credit cards that simplify expense management and tracking. They allow businesses to issue employees restricted credit cards that draw from corporate accounts and impose purchasing restrictions with transparent tracking. Controls enable employers to limit who is authorized to make purchases, which expense categories are allowed, and how much can be spent.
Businesses typically use purchasing cards for purchases such as supplies, maintenance, travel, and recurring business expenses. P-cards provide a convenient way to make transactions, reducing reliance on checks and reimbursements, streamlining expense management, and lowering fraud risk.
Purchasing Card Benefits for Businesses: How P-Cards Improve Expense Management
By digitizing procurement payments, purchasing cards improve the efficiency of expense management and financial control. CFOs, financial planning and analysis teams, and procurement managers gain real-time visibility into spending across teams and departments. Permissions controls enable custom spending limits by user, vendor, or category. Automated expense tracking simplifies bookkeeping and reconciliation.
Logistically, faster purchasing keeps operations moving without bottlenecks. For example, a retail chain based in Grand Rapids with stores throughout the state can streamline procurement across multiple locations.
Purchasing Card Fraud Prevention: Reducing Risk with Built-In Controls
Purchasing cards help businesses reduce fraud risk associated with conventional procurement transaction methods. Businesses lose approximately 5% annually to procurement fraud, waste, and abuse. Bad actors can leverage insider access to make personal purchases or collude with suppliers to perpetrate scams, such as invoice fraud.
Purchasing cards reduce fraud risk on several fronts. P-card purchases eliminate opportunities for check fraud and reduce exposure to ACH and wire transfer transactions. Using p-cards creates transparent audit trails that simplify oversight and compliance. Digitally implemented usage policies reduce risk of card misuse and establish employee accountability for questionable transactions, making fraud easier to intercept and mitigate.
Simplify and Secure Your Business Purchases with P-cards from Northstar Bank
Northstar Bank helps Michigan business owners conduct purchasing transactions efficiently and securely by providing p-cards and other business banking services. We offer a variety of popular business credit card options to meet your needs, whether you’re looking for low rates, cash back, or flexible rewards. Our cards feature free online expense reporting tools, no fees for additional employee cards, mobile payment capability, and zero fraud liability for unauthorized transactions, with 24/7 customer support 365 days a year. Contact us by phone, email, or in person to discuss how we can help you with purchasing cards and your other business banking needs.
