Use of corporate cards for personal purchases, a widespread practice among travelers

Four out of ten Spanish business travelers use corporate cards for personal purchases, according to a study commissioned by CWT. This figure, which is in line with the global average, is lower than in Europe and the Americas, which stand at 46%, and the Asia-Pacific region, which stands at 38%.

The Spanish business traveler's use of corporate cards to make personal purchases is also lower than in Europe and the Americas, which stand at 46%, and in the Asia-Pacific region, which stands at 38%.

The popularity of this practice contrasts with the existence of policies that prohibit the use of corporate cards for personal expenses in most companies. In the case of Spain, for example, 58% of respondents say their company has such a policy, with a 91% compliance rate.

Also 58% of European and 63% of American corporate travelers admit the existence of such rules in their companies, with a compliance rate of 85% for both regions. In the case of Asia Pacific business travelers, 69% responded that their company has a policy in this regard, with a mandatory rate of 87%.

Also, more than half (57%) of the Spanish business travelers surveyed have a company card, a figure close to the global average of 61%. Travelers from Asia Pacific are the most likely to have a corporate card (67%), followed by Americans (61%) and Europeans (56%).

And while corporate cards are used for personal purchases, the survey results also show that personal cards are often used to make business travel-related payments.

Thus, 36% of Spanish business travelers admit to always using their personal credit card when traveling for business. Although this figure is lower than the percentages in other European countries – such as France (53 %), Italy (51 %) Sweden (46 %), United Kingdom (40 %) and Germany (39 %)– and the averages for Europe (44 %), America (48 %) and Asia Pacific (55 %).

"Travel managers need to address corporate card misuse and find out why travelers are not respecting company rules in this regard," says Christophe Renard, vice president, CWT Solutions Group.

The use of personal credit cards for corporate payments makes it difficult for companies to track travel expensese, which in turn complicates compliance with travel policies.

“Virtual payment cards can be very useful for companies that do not want to take out credit cards for their employees. This way, travelers will not need to use their own cards for corporate expenses and organizations will be able to know exactly what their money is being spent on," Renard added.