I wonder why companies prefer to use a corporate credit card over debit cards (which are very easy to get)? Do they just like having the line of credit? Is it really worth the extra complication/hassle/thing to worry about just to push off payments by ~15 days (Stripe seems to require that the balance be paid off each month)? I also wonder how that is enforced (by reducing credit limits as a company's bank balance starts to decrease, or by charging interest, or by just eating the defaults)?
Or is it about managing/reporting expenses better across groups an organization? Or do companies just like the rewards?
I understand that interchange fees are higher for credit cards - so are corporate credit cards basically a way to extract additional fees from merchants and distribute them in the form of rewards/cash back to the cardholders?
I believe it's a matter of internal controls. Debit cards are typically allowed to do more things than credit cards, especially if you disable cash advances on the credit card.
Or is it about managing/reporting expenses better across groups an organization? Or do companies just like the rewards?
I understand that interchange fees are higher for credit cards - so are corporate credit cards basically a way to extract additional fees from merchants and distribute them in the form of rewards/cash back to the cardholders?