Corporate and Purchasing Card Practices Vary by Region

Global highlights from the Commercial Payment Cards Survey include:

• Annual spending on corporate cards for travel and entertainment (T&E) expenses has increased among respondents worldwide by more than 20 percent from 2005 to 2006.
• The majority of organizations surveyed worldwide (66 percent) indicate that mandating the use of corporate cards is the top factor for driving growth of the card programs.
• Companies worldwide value the reporting capabilities of P-cards to capture detailed transaction data, but the business functions facilitated by the reports differ by region.

"Corporate and purchasing payment programs have long been recognized by companies worldwide for their ability to effectively increase the bottom-line by improving overall processing efficiencies and cash flow management by providing enhanced visibility into expenditures," said Aliza Knox, senior vice president, Visa Commercial, Visa International. "The global Aberdeen survey results reveal that while companies worldwide benefit from the implementation of commercial payment cards, the reasons why companies implement and expand the programs vary from cost-savings to improved visibility of payments."

The Global Commercial Payment Cards Survey, underwritten by Visa and ACTE Global, the association of corporate travel executives, and conducted by analyst firm Aberdeen Group, explores the practices and strategies around the use of commercial payment programs, specifically around corporate cards and P-cards for organizations in four major regions, including Asia Pacific, Europe, Latin America, and North America. Corporate cards are used primarily for T&E expenses, while P-cards are primarily used by companies for expenses related to maintenance, repair, operations, and office supplies.

"We're happy to bring this valuable body of global research to our members to help them better understand the commercial payment card practices and strategies that are effectively implemented by companies around the world," said Susan Gurley, Global Executive Director, ACTE Global. "Key survey findings like these help our member organizations to be more efficient and successful."

"In an age where corporate spending is subject to the highest level of scrutiny and control, commercial cards, such as Visa corporate and purchasing cards, offer enterprises a means of closely tracking spending while providing a faster and more efficient payment process," said Vishal Patel, senior research analyst, Global Supply Management Research, Aberdeen Group.