How the Purchasing Card Works Purchasing Card

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How the Purchasing Card Works Purchasing Card

A P-Card is a type of commercial payment card that allows a company or organization to take advantage of an existing credit card infrastructure to make electronic payments for some business purposes. A P-card is a credit card used by a person, company, or department to purchase inventory or other business expenses. This charge card or credit card is similar to a credit card owned by a bank customer. P-Cards has several other names, including procurement cards or ProCards, Payment cards, Purchase Cards. Companies that use or implement P-Cards are usually from the corporate, academic, and governmental sectors. Users of these P-cards are commonly referred to as “end-users”. Purchasing Cards or P-cards are not only limited to conventional plastic cards, P-Cards can also take the form of non-plastic account card numbers. This card can be created to represent an account number in a general journal, person, or department, or directly to the company’s bookkeeper. The difference between P-Cards over regular credit cards is the rules as well as the special information that binds to them. Concrete examples of such differences are spending limits, then payment types, and groups of people who have access to one card. Although it feels like a credit card, purchasing cards are like an automated account system. It replaces several stages of the buying process, from requisition forms, then voice tracking, then bill payment, then connecting purchases to departments. In some banks, purchasing cards are not handled by the credit card department, but by financial management or service treasurers.

BIBLIOGRAPHY

Romano, Catherine. (1994). “Purchasing Cards Save Money”. Management Review, vol.83(4), pp. 6.

Dixon, W.J. (2004). “Purchasing Card For South Carolina Department Of Health & Environmental Control. S.C. State Library. State Documents.

Graves, E.T. (1998-1999). The Advantages and Disadvantages of Procurement Cards. 17 J. St. Tax’n 79.