When it comes to setting up new Reap Cards for employees or vendors, determining the credit limit is a crucial step in the process. The credit limit should be based on factors such as the employee's role, the types of purchases made, and the frequency of use. To ensure the most appropriate credit limit is assigned, it is important for Reap Card administrators to familiarise themselves with the user's spending patterns.
Here are a few key things to consider before creating a new Reap Card:
- Understand the spending pattern of the user, including:
- Frequency of use
- Type of vendor
- User role within the organization
- Obtain agreement from the budget department head or budget owner
By understanding the above information, administrators can easily set a reasonable budget for the user. However, creating a card for upper management can be quite a hassle for financial controllers. An alternative would be to create Reap Cards without a predefined limit.
A Reap Card with no predefined limit is a feature where users can create cards that don't have a definite credit limit. The spending cap of Reap cards with this feature will be based on the company's available budget. All cards that don't have any set limit will utilise the unallocated budget until it's all spent up.
When it comes to deciding whether to go with a card with a predefined limit or a card with no predefined limit, here are a few things to keep in mind:
- A card without a predefined limit works best when someone, such as the CEO or upper management, doesn't need to get approval to use the card and there’s no set budget for the cardholders
- A card with a monthly predefined budget is best when everyone knows exactly how much they can spend each month and there's no reason to go over that amount
To set up a card, refer to the step-by-step guide provided in the article. If you have any further questions, don't hesitate to email us at email@example.com.
We hope this blog post has helped to alleviate some of your doubts when it comes to creating a new Reap Card. By understanding the spending patterns of the user and obtaining agreement from the budget department head or budget owner, administrators can easily set a reasonable budget for the user. And, by considering whether a card with a predefined limit or a card with no predefined limit is the best fit, administrators can make an informed decision that works best for the company.