There are various ways and models for companies to manage employee credit cards. From IBCP and CBCP to IBIP – we highlight the differences between the common methods and show how Edi simplifies credit card billing.

IBCP and CBCP Cards

IBCP cards (Individual Billed Corporate Paid) are credit cards issued to individual employees. The invoice is issued in the employee's name and settled directly by the company. This card type can be used for all types of purchases and is very common in Switzerland. Any private expenses must be settled by the cardholder themselves.

In contrast to the "IBCP" model, CBCP cards (Corporate Billed Corporate Paid) bill the total amount to the company rather than to the individual. The reimbursement of private expenses to the company is the responsibility of the employer.

The main advantage of these two variants is obvious: employees do not have to worry about a thing. Banks also prefer and promote these models accordingly.

However, this system has disadvantages, especially regarding expense processing:

• Companies must expect significantly longer expense cycles.
• The finance team must wait for complete expense reports from all employees to perform reconciliation. This can not only be time-consuming and tedious but also lead to payment delays or invoices being paid without being verified.

IBIP Cards

The IBIP card (Individual Billed Individual Paid) is not issued to the company, but to the employee. The company guarantees the card, which allows for higher limits than a private card. However, the credit card bill is settled by the employees themselves.

This creates several advantages for companies:

• They do not have to worry about reconciliation, saving time for the finance team. The responsibility for verification lies with the employees.
• Expense cycles can be shortened by an average of two weeks, as employees are motivated to submit their reports as quickly as possible to receive their reimbursement before the credit card bill is due.
• Transaction data in the system is 100% accurate.
• The correct exchange rate is used.
• Fewer manual entries for employees.

For banks, the IBIP model involves more effort. They therefore tend to recommend other models. If you choose IBIP regardless, you may have to expect less attractive pricing models.

Accelerating and Automating Processes with IBIP

We recommend using IBIP cards whenever possible. With IBIP "Walking Cards," you motivate your employees to submit expense reports promptly and completely. The expense tool Edi simplifies this process:

1. Employees photograph receipts directly with the Edi app after a purchase or upload them via desktop.
2. Modern integrations transmit the credit card feed to Edi within minutes.
3. Edi recognizes the transaction and automatically assigns it to the matching receipt.

Edi works closely with all major credit card providers, such as Viseca and Cornèrcard. These partnerships help accelerate the onboarding processes. Nevertheless, we recommend involving your bank as early as possible in the project and requesting the card feeds, as some banks have longer processing times that could delay the project.

Thanks to the integration of credit cards into financial systems, both employees and the finance team have a constant overview and control over all transactions.

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