Corporate expense cards were designed to simplify company spending. They reduce the need for reimbursements, give employees faster access to funds, and let finance teams monitor spend. In theory, they’re a win-win.
But here’s the reality many CFOs and finance managers know too well:
Without proper oversight, corporate expense cards quietly become a source of budget overruns, compliance risk, and administrative waste.
From out-of-policy purchases to hidden fraud and painful reconciliations, the cost of unmanaged card use can be significant – and often invisible until it’s too late.
In this guide, we’ll explore the real financial and operational risks of unchecked corporate card spending and show how to regain control without losing the convenience employees expect.
What is a Corporate Expense Card & How Does it Work?
A corporate expense card is a company-issued payment card employees use to pay for approved work-related costs.
Instead of covering expenses out of pocket and submitting claims, employees use the card directly, and the company is billed for those transactions, rather than the employee.
According to a 2025 survey of 500 UK-based employees by ExpenseIn, nearly half of UK employees (49%) still use their own money for work purchases before claiming them back in traditional expense systems – a process that not only delays reimbursement but adds unnecessary strain on staff and finance alike.
Modern business expense cards for employees offer clear benefits:
No reimbursements needed, so employees never have to front their own money
Real-time tracking makes it easy for finance to monitor spend
Better visibility supports accurate budgeting and financial forecasting
But when these cards are used without control or visibility, they create exactly the kinds of risks finance teams try to avoid.
The Hidden Risks of Unmanaged Corporate Card Spend
1. Expense Policy Violations & Employee Misuse
Without active monitoring, corporate cards can be misused – even unintentionally. Surveys show:
Nearly a quarter of employees admit they have made personal purchases on a company card.
During just the first nine months of 2022, the number of cases logged in the National Fraud Database increased by 17% compared to the same period in the previous year.
These policy breaches lead to:
Bloated travel or client budgets
Unnecessary overspending
A damaged culture of compliance
Once one person gets away with bending the rules, others tend to follow. And if finance only reviews charges once a month, you’re enforcing policy after the money’s already gone.
2. Fraud: The Expensive Problem You Can’t See Coming
Expense fraud is more widespread (and more expensive) than most finance leaders expect:
Procurement fraud (which includes expenses fraud) accounts for ~4.76% of UK company expenditure each year. This equates to an estimated £121.4 billion in losses annually.
It typically goes undetected for 24 months.
Global corporate and consumer card fraud losses hit $33.8 billion in 2023.
What does this look like in practice?
Photoshopping or reusing receipts
Submitting the same expense multiple times
Using a company card to purchase gift cards or personal items
And in companies with manual audit processes, these slip through far too easily.
3. Missing Receipts = Compliance Risk
Finance leaders know that missing documentation equals risk. For example:
No receipt? No VAT reclaim. Tax authorities often reject claims based on card statements alone.
Poor spend records can trigger fines, delayed audits, and reputational damage, especially if policy breaches are systemic.
Even good-faith spending can trigger issues if not properly tracked.
4. Lack of Real-Time Visibility
Would your team know today if a department overspent its Q2 travel budget?
If you rely on delayed statements or employee-submitted reports, the answer is likely “no.”
64% of CFOs say inadequate tech/systems are their biggest obstacle when turning data into insights
50% of businesses still use manual expense processes, increasing delays and errors.
Without real-time visibility, you’re flying blind. Month-end reconciliation won’t help you fix a budget that’s already been blown three weeks ago.
5. Manual Reconciliation is a Hidden Cost Centre
Manual reconciliation is more than tedious – it’s expensive.
The average cost to process a manual expense report is approximately £23.14, adjusted for inflation.
19% of reports contain errors that require extra correction time.
One in ten employees are chased for receipts daily, and 28% are chased weekly, according to a 2025 ExpenseIn survey.
For example, if your company processes 480 reports annually, that’s ~£18,500 a year just in admin costs. And that doesn’t even include productivity loss or morale hits from finance teams chasing receipts all month long.
How Finance Teams Are Regaining Control of Corporate Spend
1. Build a Strong Corporate Card Policy (& Train for It)
Create a clear, well-documented corporate expense card policy that covers:
Permitted vs. non-permitted expenses
Spend limits
Receipt requirements
Disciplinary consequences
Make this part of your onboarding and refresh it regularly through training.
2. Use Business Expense Cards with Smart Controls
Choose corporate expense cards that allow you to:
Block certain merchant types (e.g. gaming, luxury goods)
Set per-day or per-month spend limits
Instantly freeze or cancel cards
Pro Tip: The best business expense card programs enforce policy at the point of purchase, not after the fact.
3. Enable Real-Time Tracking & Alerts
Modern expense management tools, like ExpenseIn’s expense card, give finance teams:
Instant visibility into every transaction
Real-time dashboards to monitor spend by employee or department
Automated alerts for out-of-policy or over-budget purchases
For example, when a manager sees a £750 charge for a client dinner, they can flag it that evening, not three weeks later.
4. Automate Reconciliation (& Save Thousands)
Expense management software like ExpenseIn simplify reconciliation by:
Automatically generating a draft expense when a card is used
Auto-filling merchant and spend category
Prompting the employee to upload a receipt immediately
Result?
No more chasing people. No more matching spreadsheets. Just accurate, timely data that syncs directly to your accounting system.
5. Centralise Expense Card Management
The most efficient setup links card usage to approval workflows, reporting, and accounting in one system.
With ExpenseIn’s integrated expense card:
Every transaction appears instantly in your dashboard
Approval flows are automated
Reconciliation happens as the spend occurs
No duplicate systems or data entry
It’s the fastest path to compliant, controlled, and painless company spending.
From Risk to ROI: Why Finance Leaders Are Making the Shift
Modern employee business expense card systems aren’t just about spending. They’re about:
Preventing misuse and fraud
Reducing compliance risk
Saving thousands in admin costs
Empowering better financial decisions
With comprehensive business expense tracker apps like ExpenseIn, you turn spending from a risk into a real-time, auditable process that supports smarter decisions.
Conclusion: What’s the Real Cost of Inaction?
If you’ve ever wondered where that £3,000 budget overage came from…
If your team is still chasing receipts the night before month-end…
If policy breaches keep slipping through the cracks…
Then you’re already paying the price of unmanaged card spend.
Now is the time to ask:
Do we know how much has been spent today?
Are policies actually being followed?
Are we catching fraud before it hits our books?
Has reconciliation been automated?
If the answer is “not really,” it’s time to fix that.
Explore ExpenseIn’s all-in-one expense card and management platform. Book a demo today and take back control of your company’s spending – before it costs you more than it should.
