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
The ghost card concept makes it easier to assign the cost of purchased items to specific departments, while also giving more employees access to this purchasing option. This approach also speeds the rate at which the company is made aware of employee purchases; expenses submitted for reimbursement are sometimes not forwarded to accounts payable for months.
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.