Thursday’s post covered the key components of the bank / card holder side process:

One reader reached out to us and wanted to know what are the key pitfalls of a P-Card process. These can be listed as under:

  • Use of P-Cards for personal purposes by an employee
  • Administrative work for maintenance of P-cards
  • Over utilization charges sometimes
  • Non-submission of bills by employees require a good amount of follow up in some cases
  • In case of a tight cash flow, delayed payment to bank / card company can result in heavy charges / interest.

I hope that helps our readers.

Coming to the process of maintenance of P-Cards. I would classify the activity in three parts:

  • Issue of cards
  • Maintenance during the card usage period
  • Revocation of cards

Starting with the issue process of the cards. This will come into picture based on the company policy, whether this will be issued need based (mostly adapted to) or to all employees. The key steps for this process will be:

  • Trigger process for issue of cards
  • Obtain relevant request and verify for completeness for documents and employee agreements
  • Verify or obtain approval from sanctioning authority
  • Validate / define the card limit
  • Submit application to bank / card company
  • Follow with employee for receipt of card and obtain an acknowledgement

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