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🇱🇹 Lithuania /Economy & Trade

Company Card Passed from Hand to Hand? Experts Warn of the Risks

From Delfi · () Lithuanian

Translated from Lithuanian and summarized by DistantNews. Read the original for the full story.

At a glance

In-depth Named sources Context piece
  • Urbo Bank advises companies to assign separate payment cards to employees or specific functions instead of sharing one card.
  • Shared cards can obscure who made a payment, produce missing receipts and duplicate reimbursement claims, and make unusual transactions harder to investigate.
  • The bank recommends using separate cards and account controls to improve expense tracking, transparency and security.

One company card used for a manager’s purchases, employee travel, office supplies and online payments may seem convenient. As more people share it, however, it becomes harder to identify who paid, when the transaction occurred and what it covered.

Julius Ivaška, director of Urbo Bank’s Business Service, said companies should organize payment procedures before they grow more complex. A personal purchase may be charged to the company by accident or deliberately. A business account may also be used for a taxi linked to an app, while receipts or invoices can disappear. In some cases, the same payment may later be submitted for reimbursement again.

There are various situations: a personal purchase is paid for with a company card, either accidentally or deliberately, or a company account linked to an app is used to pay for a taxi instead of a personal account

· Julius IvaškaThe Urbo Bank executive listed common problems caused by shared company cards.

Ivaška said companies should consider separate cards for different employees or functions, such as management, business travel, online purchases and everyday operating expenses. When each card has a clear purpose, businesses can see spending on office needs, fuel, food, raw materials or a specific project without tracing every transaction manually.

This does not necessarily mean deliberate abuse, as some discrepancies arise from simple disorder, but that too costs the business time and money

· Julius IvaškaHe cautioned that poor organization can create losses even without intentional misconduct.

That arrangement can make unusual payments easier to spot, reduce the risk of abuse and improve financial transparency. Ivaška also stressed that a company card linked to a legal entity’s account is issued to a specific cardholder. Employees should not pass the card, PIN, CVC code or other card details to someone else.

If several employees need to make company payments, he recommends ordering a separate card for each person. The company can then link each payment to a cardholder and block the card when an employee changes roles or leaves the business.

If several employees need to make payments on behalf of the company, each should be given a separate card rather than passing around one shared card

· Julius IvaškaHe recommended individual cards for employees who need company payment access.
About this summary

Originally published by Delfi in Lithuanian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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