Pros and Cons of P-Cards

P-card is a form of company charge card that allows goods and services to be procured without using the traditional purchasing process. They allow the holder of the cards to spend their money on purchases without necessarily having to use hard cash.

It is a type of business card that is given to selected employees so that they can make purchases and payments for the companies. There is an average transaction cost when the P-card is used.

Pros and Cons of P-Cards

Pros of P-Cards

  1. They control the company’s expenditure

As the cards have an average transaction cost, it is easy to control the expenditure of the company as it cannot purchase beyond the average amount.

  1. They gain points

Many P-cards gain points when they are used by the company and this can save the company some money as it will be able to use the points to make purchases.

  1. Efficiency

It is an efficient way of making payments as it is quicker and more accurate means of making payments on the purchases.

  1. Convenient

It is convenient for the employees as they will not have to use their funds to make purchases hence it saves them a great deal.

  1. It gives information

The information on the use of P-cards can be used to identify frauds and misuse of the company’s funds and this may limit the employees from making unnecessary purchases.

  1. It reduces the cycle of making transactions

As there is an average cost of using the cards, it saves the company the risk of the employees making purchasing every time.

  1. Improves the relationship between the supplier and the company

It takes between two to five days for the payments to be received and this will improve the relationship between the supplier and the company.

  1. It reduces the number of supplier’s invoices

The supplier will be sure of the payments and this will reduce the load of the supplier having to send invoices to the companies.

  1. Reduces expenses on account payable personnel

When a company uses a P-card, the supplier will reduce the staff as it will not require someone to have the invoices done and be send to the companies.

Cons of P-Cards

  1. The employees need to be trained

The employees of the company need to be trained on how to use the P-cards and this may take some time which may be used for other work in the company.

  1. Fraud and misuse

Some of the employees may misuse the cards and this may make the company spend much on the purchases.

  1. Time to create policies

The company will require time for it to create policies that need to be followed on the use of the cards which may be quite involving,

  1. Monitoring of the reviews

The company will need to hire someone to monitor the review of the usage of the card and this may be an extra cost to the company.

  1. Accidental and unintentional misuse

The employees may not be intending to use the P-cards but they may use them unintentionally hence putting the expenditure on the company. This may result due to a lack of understanding of how the system operates.


P-cards are good means of payment to be used by a company as it will be able to control the expenditure of the company and the frequency of making purchases.

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