What are the disadvantages of using credit cards?
• no way for vendor to tell if employee is an authorized user of credit card without employee’s name on card • creates need to develop control system for one or more cards • can have several cards depending on number of vendors and types of cards each vendor accepts Q: What items should be included in a credit card policy? A: In order to limit the disadvantages of using credit cards, cities should establish and enforce a credit card use policy. Sample policies are available from the League. Items that should be covered in such a policy are: • identify authorized users • identify those responsible for approving new cards • identify the type of items that can be purchased • prohibit personal use • identify a method of safeguarding the cards • set a spending limit • determine an appropriate payment review and approval procedure. Q: What are procurement cards? A: Procurement cards are credit cards that are similar to city-owned credit cards, except that each individual employee is issued a
