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How to add an authorized user to a business credit card
Adding an authorized user to a business credit card can help you manage your spending and earn more rewards. In some cases, it could also improve your credit as the primary cardholder or authorized user.
It typically only takes a few minutes to add an authorized user online or call your credit card company. Some of the information you might need includes your employee’s first and last name, address, and Social Security number.
What is an authorized user?
An authorized user on a credit card is someone who’s been added to the card account by the primary account holder. Authorized users can make purchases with their own credit card, but it’s often up to the account owner to make payments.
In general, authorized users have less control over a card account. They can typically make purchases and earn rewards, but they might not be able to redeem rewards or view all the transactions on the account.
In some instances, a primary cardholder could also set spending limits for authorized users or have the option to lock their card at any time.
How to add an authorized user to a business credit card: step-by-step guide
Follow these steps to add an authorized user to your business credit card:
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Sign in to your credit card online account.
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Select the credit card where you want to add an authorized user.
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Find and select “Add authorized user” or “Add employee card.” Depending on your card, you might have to look in “Account services” or a similar area of your account.
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Fill out and submit the required information to add an authorized user. For small business credit cards, this often includes your employee’s first and last name, address, date of birth, and Social Security number.
Pros of adding an authorized user to a business credit card
Delegate and track purchases
Business owners have many responsibilities, including making purchases and payments. With authorized users, you can delegate some or all of your purchases to trusted employees, freeing up your time to focus on other necessary tasks.
As the primary cardholder and business account owner, you can always track spending and make sure everything is in order.
Earn more rewards
If you add an authorized user to a rewards credit card, any purchases made on the employee card also earn rewards. That gives you more opportunities to rack up points, miles, or cash back.
In addition, the account owner typically has complete control over reward redemptions. So you can earn rewards from dozens of employee credit cards and then decide how to use them, such as booking flights or hotel stays.
Employees can receive card benefits
Authorized users often receive many of the same card benefits as primary cardholders. For example, an authorized user on the Capital One Venture X Rewards Credit Card receives the same airport lounge benefits as the account owner, including complimentary access to Capital One, Priority Pass, and Plaza Premium Lounges.
Read our full review of the Capital One Venture X Rewards card
Other common benefits that authorized users could take advantage of include:
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Purchase protection
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Extended warranty coverage
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Travel insurance
Build credit
Managing your card by making on-time payments could help build your credit and that of an authorized user on your account if your credit card issuer reports authorized user activity to credit bureaus. This would then reflect on your personal credit report and credit history, which could help you reach personal finance goals, such as qualifying for better credit cards.
Keep in mind that responsible card account management includes paying off any purchases your authorized user makes.
Cons of adding an authorized user to a business credit card
You have to manage authorized users
While you might not have to make as many purchases, you may still have to keep an eye on employee spending. This could include setting spending limits and paying off balances on employee cards.
Some employee cards have fees
Unfortunately, not all authorized users are free. Depending on the card, you might have to pay an annual fee for each user you want to add.
For example, The Business Platinum Card® from American Express has these options for additional cardmembers (see rates & fees):
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$350 for each additional Business Platinum Card
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$200 for each additional Executive Business Card
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$45 for each additional Business Gold Rewards Card
Could impact your credit
An authorized user’s credit score could go down if the primary cardholder misses payments or makes late payments. Similarly, the primary cardholder’s credit score could go down if they forget they have an authorized user and don’t pay off their balance.
Note that if an authorized user is using most or all of their available credit limit, it could affect the account owner’s credit utilization, which could lower their credit score.
Frequently asked questions (FAQs) about adding authorized users to business credit cards
What’s the difference between an authorized user and an employee card?
The primary difference is that employee cards are for authorized users on business credit card accounts. These users have their own named cards and can make purchases on behalf of the business. An authorized user on a personal credit card also receives their own card, but they’re not restricted to only making business purchases.
Does being an authorized user on a business credit card affect your credit?
Yes, it can affect your credit if the lender reports authorized user activity to credit bureaus. If the account owner pays off balances on time, your credit score might increase, but it could go down if any payments are missed.
How many authorized users can I add to a business credit card?
It depends on the card, but many allow you to add multiple authorized users for free. For example, you can add up to 99 authorized users at no additional cost to cards like The Blue Business® Plus Credit Card from American Express and American Express Blue Business Cash™ Card.
This article was edited by Rebecca McCracken
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
