Procurement/Purchasing Card (P-Card)

A Procurement or Purchasing Card (P-Card) is a type of charge card issued to employees of a business to facilitate and streamline the purchasing process for various business expenses. These cards are used primarily to acquire goods and services that the business needs to operate, such as raw materials, office supplies, and other essentials.

P-Cards serve as an efficient alternative to traditional purchasing methods, such as purchase orders or requisitions. They enable quick transactions, which can be particularly advantageous for minor purchases that would otherwise require a disproportionate amount of administrative effort and paperwork. This streamlined process helps businesses reduce the overall cost and time associated with procurement.

Key features of P-Cards include:

To mitigate risks such as fraud or misuse, companies implement stringent guidelines on the use of P-Cards. These guidelines are supported by regular audits and employee training programs to ensure that all cardholders understand their responsibilities and the limitations of card usage. Overall, P-Cards represent a practical solution for managing business expenses efficiently while maintaining control over procurement activities.