Ghost card definition

What is a Ghost Card?

A ghost card is a credit card number that is specific to each company department, for use by anyone in that department. Purchases made on each of these cards are then charged back to the department to which the card was issued. A ghost card can even be issued to selected suppliers. These suppliers simply charge the card number of every company purchase made through them, which reduces the paperwork that would normally be associated with each individual purchase. The provider of ghost cards should be able to port data on purchases made directly into the corporate accounts payable system, so that no data entry by the payables staff is required.

Advantages of Ghost Cards

There are multiple advantages associated with ghost cards that make them a good choice for many businesses. Here are the key advantages:

  • Better expense tracking. The ghost card concept makes it easier to assign the cost of purchased items to specific departments and users. This also makes it easier for departments to track the purchases that they have made through these cards.

  • Better spending control. You can set specific transaction limits on each ghost card, which eliminates the risk of overspending. Some cards also have pre-set expiration dates, which keeps them from being used once a project has been completed.

  • Reduced risk of fraud. Each ghost card has a unique card number, which reduces the risk of fraud if any one ghost card number is stolen.

  • Eliminates employee reimbursements. Employees can use ghost cards for approved expenses without the need for out-of-pocket spending or reimbursement.

Disadvantages of Ghost Cards

A downside of the ghost  card is that former employees may still attempt to use it; this would not be the case if they had been issued a specific procurement card, since that card would be retired and its number deactivated when they left the company.

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