Purchasing and corporate card misuse

A cardholder uses a purchasing or corporate card for personal purchases, splits purchases to stay under transaction limits, buys gift cards or other cash equivalents, or continues to use the card after leaving or while on leave.

Fully covered.

Starter pack: Expense and card review

Red flags

In the data

• Multiple transactions at one merchant on the same day that together exceed the limit
• Prohibited or high-risk merchant category codes, gift cards, and cash equivalents
• Use after termination or during leave
• Weekend and holiday transactions at personal-use merchants
• Card spend far above peers or concentrated with one merchant

Behavioral

• Cardholder resists statement reviews or submits receipts late
• Cardholder lends the card to others

Internal controls

• Merchant category blocks not configured
• Card not canceled promptly on termination
• Statement review by someone without authority or knowledge of the purchases