You are solely responsible for all charges to a credit card bearing your name. You'll be on the hook for any purchases made with your credit card by anyone who has been added as an authorized user to your account. Then how can one protect themselves against another person's immorality?
A few customer credit cards, however only a few, provide a workable answer to this issue by enabling the cardholder to establish monetary boundaries for approved uses of the card. Also, in small businesses, features like this for personnel credentials are standard practice.
Credit Cards for General Consumers
Very few creditworthiness cards allow you to establish Credit Card spending limits for authorized users. These cards are becoming increasingly rare. According to research, all inquiries were made with a number of the most prominent card companies, and discovered that only American Express provides this functionality on all of its retail cards. Nevertheless, Citi provides this perk within one of its customer credit cards. In contrast, Barclays delivers a variant of this function that restricts the expenditure of authenticated persons based on the transaction. Both of these credit card companies sell their products to consumers.
American Express Company
The issuer is American Express Company, and the lowest Credit Card spending limit that may be imposed is $200. Investigate the credit cards offered by American Express.
Barclays
According to the information provided by the issuer, Credit Card spending limits may only be restricted on a transaction-by-transaction basis rather than globally. For instance, the principal cardholder has the option of preventing authorized user charges that are greater than USD 100. Check out the credit cards offered by Barclays.
Citi
Costco Everywhere Visa Credit Card issued by Citi is the only personalized Citi card that offers spending limitations for authenticated persons; all other Citi credit cards are not eligible for this feature.
Recommendation of Credit Cards for Authorized Users
Your options for a customer credit card will be far more limited if you focus on finding one that offers the ability to restrict spending for approved users. The following credit cards are our top recommendations if you are interested in this perk and want a functional card that offers rewards.
American Express Blue Cash Preferred Credit Card
The credit card from American Express is a great card to have if you want to earn points at the grocery store. It provides 3% money back on petrol expenditures and 3% cashback offers on transportation, which includes cabs, ride-sharing, and minibusses, in addition to 6% money back at U.S. groceries (up to USD 6,000 in annual expenditures, then 1% after that) and online streaming platforms.
It comes with a welcome bonus package: Invest USD 3,000 on purchases with your new Credit card during the first six months of having it, and you'll receive a monthly statement credit worth USD 250. There are certain restrictions. An annual price is associated with using it, which is waived for the initial year and then increases to $95. You can establish limitations for authorized users, similar to what is available on other AmEx credit cards.
Citi Card from Costco
The Citi card is an excellent option for Costco customers who often reload their vehicles at gas stations. The card provides a cashback reward of 4% on qualifying petrol and EV charging station expenditures, 3% on eateries and qualified travel expenses, and 2% on items purchased at Costco and Costco.com. The cash-back reward is capped after the USD 7,000 annual limit. You will get your cashback from an annual reward program, which can be redeemed at Costco for either cash or items. There is no yearly charge, but you must have a Costco membership. You can place restrictions on the amount that approved users may spend using their cards with this card.
Credit cards geared at small businesses
Only a select few consumer credit cards allow you to restrict the amount authorized users may spend. On the other hand, practically all credit cards issued to small firms come equipped with spending limits for personnel cards. You can typically receive any of these credit cards, whether you are a freelancer or an entrepreneur who runs a digital business, as long as you match some other credit and revenue standards.
The following is a list of critical issuers who provide this feature:
- American Express Company
- Bank of America
- Capital One Bank
- Citi Bank
- Chase Bank
- Discover Bank
Recommendations for Credit Card Spending Limit for Employees
A wide variety of choices available to you when selecting a credit card for your small company enables you to impose spending restrictions on employee cards. As of this writing, every card that can be found in our selection of the Top Credit Cards for Small Businesses is equipped with this practical function. Here are some options that are worth considering.
One Spark Cash Plus from Capital One
The outstanding 2% cash back on all transactions may be earned with the Spark Cash Plus credit card from Capital One. In addition to this, it offers a generous welcome bonus: You might receive a cash incentive of up to USD 1,000 if you meet the following requirements: spend USD 5,000 within the first three months of opening the account; spend USD 50,000 within the first six months of the account starting. The yearly cost is $150, while no charges are assessed for transactions made in a foreign country. You can establish spending limitations on employee cards, a feature that small businesses offer by Capital One shares.
Credit Card from Ink
It is an excellent option for business owners who frequently travel for work. There's a massive welcome offer: Pay USD 15,000 on transactions in the first three months after creating your account, and you'll get 100,000 extra points. When earned through their reward program, that's USD 1,000 in cashback for travel expenses.
