What is the difference between a corporate credit card and a business credit card?

The main differences between a corporate credit card and a business credit card are that corporate cards are meant for larger corporations – those with over $4 million in annual revenue – and may not require a personal guarantee. Business credit cards are for smaller companies and are closely tied to the user’s personal finances. In addition, there are some other important differences between business and corporate cards in regard to account opening and cost.

Corporate Cards vs. Business Cards

In general, business cards have an easier application process than corporate cards. Business cards also tend to have lower annual fees, and sometimes no fees for adding authorized users. Additionally, business owners can decide whether rewards earned on purchases go to the company, the employees, or themselves.

Corporate cards are quite the opposite, with higher annual and authorized user fees. Rewards earned on corporate cards also help the business directly, since the account is opened under the name of the business rather than any individual.

Ultimately, figuring out which card is right for your business depends mostly on the size and revenue of the business. It’s also very important to consider whether you or the company should be liable for any irresponsible credit card use. Beyond this, compare rewards, fees, and authorized user policies to choose the card that’s right for your business.