Corporate Credit Card misuse at Pentagon

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According to Department of Defence official, Pentagon employees spent nearly a million dollars on “adult services” and around $100,000 on adult entertainment. Aparently, some employees have paid back and some are in the process of paying the money back.

For all of us who has been designing and implementing Corporate Card policy, it is a challenge to ensure that the Corporate Credit policy is not very restrictive but at the same time it does protect the organization from misuse and fraud.

Some of the measures which can be taken to ensure that you can discourage such behavior is

  1. Communicate, Communicate, Communicate:  Make sure that the credit card usage policy is well defined and communicated often. Create a cheat sheet and  communicate the usage policy at following events

    1. ​​At the time when a new employee joins the organization

    2. At the time when credit card is issued

    3. A refresher every 6 months .

  2. Helpline: Depending upon how big your corporate credit card program is, it might be useful to have a helpline or an email, so that employees can ask questions related to use of company issued credit card.

  1. MCC level controls: Most of the credit card issuers allow restrictions based on Merchant Category Codes (MCC), so an easy way to enforce the controls might be to restrict the purchases based on MCC codes.

 

Interested to hear your ideas on how you are managing this in your organization

 

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